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August 16, 2017

CFPB: Student debt has doubled over last 10 years

The CFPB, in a new report released Wednesday, found that nearly half of student loan borrowers owe about $20,000 after leaving school, which is double what borrowers owed a decade ago.

The CFPB report analyzed more than 1 million student loan borrowers' credit reports that began repaying loans from 2002 to 2014. Along with the finding that more than 40 percent of borrowers leave school owing $20,000 or more, the bureau also found:
  • half of student loan borrowers are 34 or older when they start repaying loans;
  • 30 percent of student loan borrowers are not paying down their loan balances after five years in repayment; and
  • more than 60 percent of those borrowers not reducing their balances are delinquent on their loans.
In a separate report, also released Wednesday, the bureau found that more employers have an increased interest in offering student loan repayment benefits to their employees. The report offers recommendations in an effort to help employers ensure that these programs are as beneficial as possible.