This report highlights problems experienced by student loan borrowers with older federal student loans made by private lenders.

This analysis takes a first step in putting real numbers to the economic consequences of student debt, tackling the consumer item with one of the largest economic impacts: home purchases.

Using the National Center for Education Statistics’ Baccalaureate & Beyond Longitudinal Survey, a nationally representative sample of 1992–1993 college graduates, this paper examines the relationship between educational debt burden and student race, ethnic, gender and income characteristics 4 years after receiving the bachelor’s degree. The results indicate strong effects of family income, race and ethnicity on excessive educational debt burden among student borrowers.

The survey results tell a discouraging and familiar tale: financial aid is extremely important to ensure college access and completion, but many students with financial aid desperately need a better information “roadmap” to help them navigate the process.