{"id":20286,"date":"2022-04-15T00:00:19","date_gmt":"2022-04-15T00:00:19","guid":{"rendered":"https:\/\/www.tamus.edu\/data-science\/?p=20286"},"modified":"2025-10-06T20:24:15","modified_gmt":"2025-10-06T20:24:15","slug":"repayment-of-federal-student-loans-over-time-trends-by-urm","status":"publish","type":"post","link":"https:\/\/www.tamus.edu\/data-science\/2022\/04\/15\/repayment-of-federal-student-loans-over-time-trends-by-urm\/","title":{"rendered":"Repayment of Federal Student Loans Over Time: Trends by URM"},"content":{"rendered":"\t\t
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Repayment of Federal Student Loans Over Time<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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This blog post represents the seventh in our series on student loan debt. All previous blog posts can be found on our primary website<\/a>. In our previous blog post<\/a>, we started looking at trends in student loan repayment of beginning balances. Using\u00a0the\u00a0<\/span>US Department of Education’s <\/span>College Scorecard<\/a>\u00a0data, we found that\u00a0<\/span>the average balance owed at each of the four checkpoints in the Scorecard data was 97.6% in Year 1, 89.5% in Year 5, 64.9% in Year 10, and 40.6% in Year 20.<\/span>\u00a0One of the observations from these data was that\u00a0<\/span>repayment of student loans may differ based on institutional type and demographic characteristics. We explore these differences further in this blog post.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Relationship between Loan Repayment Rate and Percentage of Underserved Students<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In the\u00a0<\/span>visualizations below, we have repayment rates disaggregated by the percentage of students who identify as either Black\/African American or Hispanic\/Latino. We refer to this group as Underrepresented Minority (URM) students. Campuses are grouped into quartiles based on the percentage of URM students in the undergraduate population. Texas public four-year universities are highlighted with their name abbreviation and color associated with university system membership. The three tabs at the top of the visualization show data for checkpoints at 5, 10, and 20 years after students leave an institution.<\/span><\/p>\n

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  • The primary takeaway from the URM-segmented data is that institutions with higher URM percentages have borrowers carrying higher average balances over time<\/b>.\u00a0<\/span><\/li>\n
  • Looking at the first chart, you can see that almost all of the institutions in the highest URM quartile to the far-right have repayment averages exceeding 100% at Year 5<\/b>. This means that the average student from these institutions owes more in student loan balances after 5 years than they did when they left school.<\/span><\/li>\n
  • A large proportion of institutions in the third quartile (50%-75% URM) are at or above 100% in Year 5, with a smaller portion of the second quartile above 100%.<\/span><\/li>\n
  • In Year 10, most institutions have percentages that are lower than in Year 5. However, there are still a number of institutions in the top two quartiles (50% URM and higher) that are at the 100% or above mark.<\/b><\/li>\n
  • In Year 20, the median percentage for the highest URM institutional quartile\u00a0(75%-100%)\u00a0is still above 75%.<\/b>\u00a0This indicates that half of the institutions in the highest quartile have students who still owe at least 79% of the original student loan balance after 20 years since leaving the institution.\u00a0<\/span>For the other three quartiles, the median percentage owed is below the 50% mark.<\/li>\n<\/ul>\n

    NOTE: Due to the volume of information in each visualization below, we recommend that you click the “Full Screen” button in the bottom-right corner to enhance viewing of the data. Also, clicking in the “Select System” box at the far-right will allow you to highlight all of the institutions within one of the public university systems in Texas.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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