2018 College Track Social Mobility Report 2018 Social Mobility Report | Page 9

COLLEGE TRACK GRADUATES EARN ENOUGH TO PAY BACK THEIR LOANS We care about our students’ abilities to repay their loans. While College Track graduates are more likely to have taken out loans than the typical graduate, they borrowed less money overall. Those who work full-time are able to repay their loans, provided they did not borrow more than $30,000. 4 C O L L E G E T R A C K • P O S T- C O L L E G E O U TC O M E S At their first job, College Track graduates earn enough to pay back their student loans College Track graduates have some debt* Yet they borrow less than average And most earn enough to repay loans^ 23% No debt 77% Some debt Louisiana California VS Step 3 $23,000 Step 2 $27,000 Step 1 College Track *Compared to half of graduates in California (53%) and Louisiana (50%); TICAS (2017), Student debt and the class of 2016. 87% borrowed less than $25k and can definitely repay 7% borrowed $25-$30k and can likely repay 7% borrowed more than $30k and cannot repay** ^We use the federal gainful employment rule for colleges; loan repayment should not exceed 8% of income. This is based on a small sample study of 15 borrowers with full-time jobs. **On par and likely better than graduates from similar backgrounds: NCES (2017) Repayment of Student Loans as of 2015 found an 8% default rate among all Bachelor’s degree holders and a 35% among Pell grant recipients (regardless of whether they graduated), 3 times higher than non Pell grant recipients. So default rates for low-income graduates is likely higher than 8%. College Track Page 9