University Council Teresa Branch and Kent McGowan April 19, 2011

The cost of education is rising faster than the cost of medical care: Education Medical Inflation

Total amount outstanding on student loans: $875 billion

66% of students in the U.S. graduate with debt. 70% of students in Montana graduate with debt.

Student Debt, Per Student Averages National: $23,200 4-year public schools: $20,200 Montana state : $19,563 UM undergraduates: $20,544

PLUS Loans are taken out by the parent on behalf of the student:  $8,166  $10,370

Default rate for student loans: 7% Default rate for credit card debt: 8.8% Default rate for home mortgages: 9.1%

Montana has the lowest student loan default rate in the nation: 1.8% UM’s student loan default rate: 1.3%

Highest Academic LevelDefault Percentage Grad/Professional2.8

Amount BorrowedDefault Percentage Up to $7, $7,501 to $10, $10,001 to $15, $15,001 to $25, $25,001 to $50, $50,01 and higher2.9

A study of Texas A&M undergraduates found the following:  Default rate students with GPA <2.0 = 18%  Default rate students with GPA >2.0 = 2.6%  Default rate of students who never fail a course =1.4%  Default rate of students who fail more than one credit = 8.6%

A study of Texas A&M undergraduates found the following:  Degree recipients default rate = 1.8%  Non-degree recipients default rate = 13.7%