Us dept of education student loans

Recently, a netizen commented that "many Americans graduate with tens of thousands of dollars in student loans, which the U.S. Embassy doesn't talk about." In fact, we have introduced the situation of student loans multiple times, such as "U.S. Student Loan Debt Hits New High," "Circumstances Under Which U.S. Student Loans Can Be Forgiven," and "Surprise Gifts at Graduation Ceremonies." One of the main functions of the U.S. Embassy's social media platforms is to provide accurate and comprehensive information about various aspects of American society without concealing anything. This allows Chinese citizens to gain a deeper understanding of the true face of America, fostering mutual understanding and friendship.

According to the latest "Report on the Economic Well-Being of U.S. Households in 2018" published by the Federal Reserve, 53% of college students and graduates rely on loans, either fully or partially, to pay for their education. In 2018, the majority of borrowing students owed between 20,000 and 25,000, with most monthly repayments ranging from 200 to 299.

In the United States, the vast majority of students take out loans to finance their education. Among the types of loans, student loans account for 93%, followed by credit card loans at 24%, home equity loans at 7%, and other types at 12%. Additionally, a small percentage of parents or grandparents help their children borrow money for education, accounting for about 6% of loan borrowers. Among the loans taken out by parents or grandparents, student loans account for 81%, credit card loans for 15%, home equity loans for 11%, and other types for 9%.

Several characteristics of borrowing students can be observed from the repayment situation:

• Among those who have not fully repaid their loans, about 20% have a history of defaulting on payments. Notably, the default rate increases with decreasing educational attainment: 37% for borrowers with less than an associate degree, 21% for associate degree holders, 10% for bachelor's degree holders, and 6% for graduate degree holders.

• In terms of loan amounts, 18% of borrowers with loans under 10,000haveahistoryofdefaulting,2210,000 and 25,000havedefaulted,and16100,000 have defaulted.

• The default rate for first-generation college students is 12%, significantly higher than the 6% for those whose parents are also college-educated, indicating greater financial pressure on first-generation college students.

• The default rate among white students is 6%, while it is 16% for Latinos and 21% for African Americans.

• Among those who have repaid their loans, the highest repayment rate is among students attending private not-for-profit schools, accounting for 53%, followed by those attending public schools at 48%. The lowest repayment rate is among students attending private for-profit schools, at 38%.

This information provides a fascinating glimpse into the realities of student loan debt in the United States, tailored to suit American reading habits.