Student Debt Class of 2008

Report Read time:
Projects: Project on Student Debt
Student Debt Class of 2008

QUICK SUMMARY

The Project on Student Debt's fourth annual report on the student loan debt of new college graduates. The analysis of the most recent available data found that student debt continued to rise even as it got harder for recent graduates to find jobs, and that debt levels vary considerably from state to state and college to college.

Student Debt and the Class of 2008 is our fourth annual report on the student loan debt of new college graduates. Our analysis of the most recent available data found that student debt continued to rise even as it got harder for recent graduates to find jobs, and that debt levels vary considerably from state to state and college to college.

Nationwide, average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, or about six percent per year. State averages for debt at graduation in 2008 ranged from highs near $30,000 to a low of $13,000. High-debt states are concentrated in the Northeast, while low-debt states are mostly in the West. At the college level, average debt varied even more, from $5,000 to $106,000. Col¬leges with higher tuition tend to have higher average debt, but there are many examples of high tuition and low average debt, and vice versa.

Meanwhile, employment prospects for young college graduates have soured along with the economy. The unemployment rate for college graduates aged 20-24 was a challenging 7.6% in the third quarter of 2008, the highest third quarter rate since 2002; by the third quarter of 2009 it had risen to 10.6%, the highest on record.1 The majority of the class of 2008 fell into this age group in both years.2 
A companion online map with details for all 50 states, the District of Columbia, and nearly two thousand four-year public and nonprofit colleges is available at http://projectonstudentdebt.org/state_by_state-data.php.

National Student Debt Trends

For national trends, the best available source of data on student debt is the National Postsecondary Student Aid Study (NPSAS), a federal survey conducted every four years with a nationally representative sample of college students. The most recent survey was conducted in academic year 2007-08 and released in 2009. NPSAS data show that for the past few years, around two-thirds of students graduating from four-year colleges had student loan debt. The average amount these students owe has grown about six percent per year since 2003-04, reaching $23,200 for the class of 2008. For comparison, in 1996, only 58 percent of students graduated with debt, and they owed an average of $13,200.3 

Downloads Student Debt and the Class of 2008
Downloads Student Debt and the Class of 2008
America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
RELATED
Topics
Family Finances
Projects
Project on Student Debt

ADDITIONAL RESOURCES

An illustration showing two people standing atop a maze; the entry point to the left is labeled conciliation court, and the one to the right is labeled district court. The backdrop is green with icons of credit cards, a wallet, and a building at the top of the image.

Article

November 6, 2023 MN's Dual System for Civil Debt Cases Harms Consumers
A bakery shop employee with brown hair and wearing a gray shirt reaches into a lighted pastry case where the store’s array of baked goods are displayed.

Fact Sheet

October 9, 2023 MA Secure Choice Would Help 1.2M Workers Save
A couple with a baby stand in a living area amid unpacked moving boxes next to a brown dining set. A gray sectional sofa delineates the living room to the left, and a counter indicates a kitchen to the right. Family photos and artwork hang on the walls.

Issue Brief

September 14, 2023 Lot-Size Reform Unlocks Homeownership in Houston

MORE FROM PEW

About a dozen people stand examining large blue bins full of whole fish in a warehouse. Some people are in green clothes, others in blue, and all wear ballcaps. A few hold clipboards. Reducing Risk Strengthens the Seafood Supply Chain
A worker in a seafood market dumps bright orange shrimp from a blue bin onto a bed of ice between a lot of other seafood laid out for sale. Other workers are visible in the background, as are the arms of shoppers placing orders from the other side of the ice bed. Seafood Industry Benefits From Greater Vessel Transparency
An aerial view of a vast wetland, with scattered vegetation visible on sandy islands. In Western Australia, a Conservation Model for the World
A presentation being given by a businesswoman to a group of participants at a business conference. Four Plan Features Can Boost 'Retirement Readiness'
Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics
Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.
Quick View
Pills illustration

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.