Data Highlight: Student Debt CAAP Meeting December 16, 2015

Statewide Goal: Debt ÷ Wage Ratio = 60% 60X30TX Goal: By 2030, undergraduate student loan debt will not exceed 60 percent of first year wages for graduates of Texas public institutions Statewide Goal: Debt ÷ Wage Ratio = 60%

Breaking out debt and wage increases understanding of the goal and informs strategies This presentation analyzes Debt by degree level, completion status, sector, and student demographic characteristics Then explores Wage information by degree area and level And concludes with Data breakouts on the Debt to Wage Ratio

Bachelor’s degree recipients have about twice as much debt as those earning associates Students With Debt Average Loan Amount Bachelor's 63% $ 30,181 Associates 36% $ 15,003 Certificates 30% $ 12,482 2014 Completers

At two-year institutions, older students borrow more often and at higher rates than younger students 2014 Completers

At public universities, younger students borrow higher amounts; older students are more likely to borrow. 2014 Completers

Loan averages vary by ethnicity and gender Students With Debt Average Loan Amount African American 80% $ 31,198 White 50% $ 26,892 Hispanic 58% $ 21,277 Male 52% $ 26,013 Female $ 25,015 2014 completers

Students who don’t graduate have less debt but also less earning potential and higher default rates Completion Status Students With Debt Average Loan Amount Non-Completers 35.2% $ 15,326 Completers 54.3% $ 25,012 *Fall 2008 first-time in college students tracked through 2014

Students borrow at higher levels for graduate degrees

First-year wages differ by level Wages for 2013 Graduates

And also vary by program area Wages for 2013 Graduates

The 60x30TX Student Debt Goal is a Statewide average Undergraduates who have completed a bachelor’s, associate, or certificate Only completers who have debt and wages are included The ratio is calculated for each student and then all of the ratios are lined up and the median is chosen The 60% Goal for the state is not intended for every sector and degree type

Students earning associate degrees and certificates have a lower debt to first-year wages ratio 2013 Graduates

Debt to first-year wage varies by discipline

The debt to wage ratio also varies by student characteristics Ratio by Race/Ethnicity Ratio by Gender

What can we learn from these data? The debt to wage ratio depends on several factors including student, state, and institutional elements Examining data breakouts at different levels highlights the importance of the relationship between debt and wages Student choices Balance of resources Value of degree Questioning differences across groups can inform strategies and help target efforts, for example Why do African Americans borrow the most? Why do a higher percentage of females borrow? More exploration on the impact of student pathways on the ratio is needed