The sharpest increase in federal loan volume, 40 percent, occurred in 1993-94
on the heels of the reauthorization of the Higher Education Act, which raised borrowing
ceilings, expanded eligibility based on need, and created the unsubsidized loan option.
Annual increases in borrowing then dropped to 21 percent in 1994-95 and 8 percent
in 1995-96. (See Table 2a and Figure 4.)
Total loan volume remains by far the highest among the independent nonprofit
colleges. But the largest growth-both in aggregate amount and number of students
borrowing-has occurred in the public sector, especially at CSU. Both the number of
borrowers and the total volume of borrowing more than tripled at CSU from 1990-91
to 1995-96. Unsubsidized borrowing has increased five-fold at CSU since 1992-93.
(See Tables 3a, 4a, and 6, and Figures 7 and 8.)
The average combined Stafford Subsidized/Unsubsidized Loan amount at independent
institutions in 1995-96 was $6,516 in constant dollars, up almost 10 percent from
1990-91. UC had the next highest average loan amount ($4,302), up 15 percent. CSU's
average loan amount ($3,923) represents a 23 percent increase. (See Table 6 and Figure
9.)
In 1990-91, all three public segments awarded more non-loan aid per recipient
than loan-aid. In 1995-96, the public community colleges awarded nearly the same
ratio of non-loan aid to loan-aid as five years earlier (80 percent to 20 percent).
UC still awarded more non-loan aid per recipient. CSU, however, awarded 40 percent
in non-loan aid and 60 percent in loan aid during 1995-96, a shift from 57 and 43
percent, respectively, in 1990-91. (See Table 7.)
