Taxpayers May Lose On High-Balance Student Loans


The Brookings Institution has released a new research report by Adam Looney and Constantine Yannelis looking at student borrowers with very high balances. The research provides a good reminder that borrowers with high balances, who often feature prominently in media coverage of student debt, are the exception. Just 14% of all federal student loan borrowers have balances above $50,000, and the majority of those individuals borrowed to pursue expensive graduate degrees.