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Graduate school may account for a disproportionate amount of student loan debt

“Around 40 percent of recent federal loan disbursements are for graduate student debt, suggesting that a large chunk of the ubiquitous ‘$1 trillion in outstanding federal student debt,’ number is, in fact, graduate debt.”

Amid recent reports that cost is the most important factor in choosing a college, the New America Foundation has found that much of the student loan debt may be a result of rising graduate and professional degree tuition, and not undergraduate fees.

“Around 40 percent of recent federal loan disbursements are for graduate student debt, suggesting that a large chunk of the ubiquitous ‘$1 trillion in outstanding federal student debt,’ number is, in fact, graduate debt,” the foundation reported.

“Debt for graduate students in a range of master’s and professional degree programs accounts for some of the most dramatic increases in student borrowing between 2004 and 2012,” according to a report from the organization.

Other findings, however, show that just because someone borrows a large chunk of money does not mean that they will have to repay it all.

“Substantial new debt relief and assistance programs exist, in the form of income-based repayment plans and the Public Service Loan Forgiveness programs, which transfer large portions of graduate debt burdens from students to taxpayers,” the report said.

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Kimberlee Payton-Jones

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