Increases in graduate student debt in the US

Abstract

With enrollments rising in recent years, more than half of all graduate level students in US institutions take on educational loans. Using data from the National Postsecondary Student Aid Study (NPSAS), this study examined educational debt for graduate and professional students in 2000 and 2016 and explored whether significant predictors of debt changed over time. Results show that those with undergraduate debt were more likely to take on loans for graduate school and that Black/African American students borrowed significantly more than graduate students in other racial/ethnic groups. Findings also showed that institutional reliance on tuition and being Black/African American and Hispanic/Latino were more significantly associated with borrowing in 2016 than in 2000. Consistent with notions of human capital, graduate level education may offer higher long-term salaries and higher quality of life. However, increasing graduate level debt may curtail other life choices, may discourage students from enrolling and persisting, or may motivate degree earners to pursue different program or career options due to accumulated loans.