NPSASStudent Financing of Graduate and First-Professional Education: 1992-93


Foreword


The National Postsecondary Student Aid Study (NPSAS) was designed to answer fundamental questions about financial aid for undergraduate, graduate, and first-professional students. It provides detailed information on students backgrounds, their education expenses, and the sources and types of financial aid they receive. The study has been conducted three times: 1986-87, 1989-90, and 1992-93. This report uses the 1992-93 data.

This essay is taken from a larger report entitled: Student Financing of Graduate and First-Professional Education: 1992-93 (with an Essay on Student Borrowing) NCES #96-235. In addition to this essay on Student Borrowing, the larger report includes 38 tables in a compendia. These tables are divided into four sections: Profile of Graduate and First-Professional Students, Types of Financial Aid Awarded, Sources of Financial Aid Awarded, and Family Support and Work. The full report is available to download as a zip file.

If you would like to receive a paper copy of this report, please e-mail Aurora D'Amico at Aurora.D'Amico@ed.gov.

All estimates presented in the essay were produced using the NPSAS:93 Graduate Data Analysis System (DAS). The DAS is a microcomputer application that allows users to specify and generate their own tables from the NPSAS:93. This software system produces the design-adjusted standard errors necessary for testing the stastical significance of differences shown in the tables.

This essay was prepared by Susan P. Choy and Mark D. Premo of MPR Associates, Inc and Andrew G. Malizio of NCES.

Table of Contents



  • Foreword

  • List of Tables

  • List of Figures

  • Graduate and First-Professional Student Borrowing

  • Introduction
  • Profile of Graduate and First-Professional Students
  • Cost of Graduate and First-Professional Education
  • The Role of Loans in Financing Graduate and First-Professional Education
  • Types of Borrowing and Amounts Borrowed
  • Loans Relative to Total Aid
  • Cumulative Amounts Borrowed
  • Differences Between Borrowers and Nonborrowers
  • Conclusion


  • List of Tables


    Essay Tables

    1. Percentage distribution of graduate and first-professional students according to selected demographic and enrollment characteristics, by degree program: 1992-93

    2. Percentage of graduate and first-professional students with contributions and loans from parents, average amounts received by assisted students, percentage with a spouse who worked, and average amount earned by spouses with earnings, by attendance pattern and degree program: 1992-93.

    3. Percentage of graduate and first-professional students who worked while enrolled and average hours per week worked, by degree program: 1992-93

    4. Percentage of graduate and first-professional students with various types of loans, average amounts received, and percentage with the maximum Stafford loan, by attendance pattern and degree program: 1992-93

    5. Percentage of graduate and first-professional students with SLS and Perkins loans, by degree program and Stafford loan status: 1992-93

    6. Average percentage of loans to total aid, by attendance pattern and degree program: 1992-93

    7. Percentage of graduate and first-professional completers who borrowed from any source for undergraduate and graduate education and cumulative amounts borrowed, by degree program: 1992-93

    8. Percentage distribution of graduate and first-professional completers who borrowed for undergraduate and/or graduate education according to the cumulative amount borrowed, by degree program and field of study (first-professional students only): 1992-93

    9. Percentage of graduate and first-professional students with various types of financial aid and family support, by loan status: 1992-93


    List of Figures


    1. Percentage distribution of graduate and first-professional students according to degree program and attendance pattern: 1992-93

    2. Average tuition and fees for graduate and first-professional students, by institution control, degree program, and attendance pattern: 1992-93

    3. Percentage of full-time, full-year graduate and first-professional students receiving various types of aid and average amounts, by degree program: 1992-93

    4. Percentage of part-time and/or part-year graduate and first-professional students receiving various types of aid and average amounts, by degree program: 1992-93

    5. Average percentage of loans to total aid for graduate and first-professional students, by degree program, institution control, and attendance pattern: 1992-93

    6. Cumulative amounts borrowed by graduate and first-professional completers for undergraduate and/or graduate/first-professional education, by degree program and institution control: 1992-93


    Graduate and First-Professional Student Borrowing


    Introduction

    The use of loans to finance postsecondary education has grown dramatically since the passage of the Higher Education Act of 1965, which authorized grant, loan, and work-study programs in Title IV. In 1992-93, the Federal Family Education Loans Program (formerly Guaranteed Student Loans) was the largest single source of aid, providing $15 billion to undergraduate and graduate students. This one program accounted for 43 percent of all financial aid provided through federal, state, and institutional sources.1 Taking into account other loan programs, the percentage of all student financial aid awarded as loans remained stable at around 50 percent in the 1980s and early 1990s.2 However, student borrowing for postsecondary education now appears to be on the rise. With the introduction of unsubsidized Stafford loans for 1993-94, the number of students borrowing through the Stafford loan program increased 26 percent over the previous year.3 The impact of this increase is not reflected in this report, because the analysis is based on 1992-93 data.4

    Since the federal loan programs were first introduced, federal and state policymakers and institutional administrators have expressed concern about the amount students borrow. On one hand, they have worried about default rates and the financial viability of the loan programs, while on the other, they have been concerned about the possibility of students incurring excessive debt burdens. One frequently expressed concern has been that large debt burdens may discourage students from entering careers, such as teaching, that are critical to the national interest but typically do not pay high salaries. Similarly, many worry that medical students incurring large debts may feel forced to enter high paying specialties, contributing to shortages in general practice and underserved locations. Another concern is that undergraduates may be discouraged from entering graduate school if they already have sizable debts and face the prospect of additional borrowing to finance their graduate education.

    How best to provide loans is a subject of continuing debate, and as the various federal loan programs have evolved, numerous changes in eligibility criteria and borrowing limits have been made. In addition, policymakers have experimented with policies such as income-contingent repayment schedules and direct lending by the federal government in attempts to reduce the burden on students and minimize default rates.

    The 1992-93 National Postsecondary Student Aid Study (NPSAS:93) provides a rich source of information on borrowing by graduate and first-professional students.5 In particular, it looks at how much they borrowed in 1992-93, the size of their cumulative debt, and how they used borrowing in conjunction with other types of financial aid. However, because the NPSAS data are collected while students are still enrolled, they cannot be used to examine the impact of borrowing on career choices or to examine default rates. Nor are the data available to compare the debt burdens of graduate students with nongraduate students.

    Students in master's, doctoral, and first professional degree programs differ quite markedly in terms of their demographic characteristics, attendance patterns, and fields of study. They face different educational costs, and depend on loans and other types of financial differently. Within each degree program, there are also important differences in how students finance their education, depending on whether they attend full time for the full year (defined here as 9 months or more) or less intensively or for less time (that is, part time for all or part of the year or full time for only part of the year).

    Because of differences among the groups, this essay examines borrowing separately by both degree program and attendance pattern. To set the context for the discussion of indebtedness, the essay begins with a brief profile of full-time, full-year and part-time and/or part-year students in each degree program and describes their education costs. It then examines the role of loans in student financing of graduate and first-professional education, the use of specific loan programs and loans from parents, the ratio of loans to total aid, the cumulative amounts borrowed by students completing their programs, and differences between borrowers and nonborrowers. The compendium of tables that follows this essay provides considerably more detail on the characteristics of graduate and first-professional students and on types of student aid other than loans.

    In 1992-93, first-professional students made the most extensive use of loans: they borrowed at higher rates and borrowed much larger amounts, on average, than did master's or doctoral students. In addition, first-professional students were more likely to have only loans rather than loans combined with other types of financial aid.

    By the time they had completed their programs, 65 percent of first-professional students finishing their education in 1992-93 had borrowed from some source (including parents, relatives, and friends as well as through student loan programs). The percentage rises to 77 percent when undergraduate borrowing is counted as well. Of first-professional degree completers who had borrowed for either their undergraduate or first-professional education or both, the average total amount borrowed was $41,600, and 6 percent had borrowed $100,000 or more. First-professional completers in health fields had the greatest cumulative debt: among those who had borrowed, 14 percent had borrowed between $75,000 and $99,999, and 13 percent had borrowed $100,000 or more.

    In contrast, master's degree completers in 1992-93 who had borrowed for either undergraduate or graduate education or both had an average cumulative debt of $11,900, and doctoral degree completers had an average of $21,200. The greater cumulative amount borrowed by doctoral students compared with master's degree students reflects, at least in part, the fact that doctoral degree programs are longer than master's degree programs and doctoral students were more likely than master's students to attend full time, full year.

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    Profile of Graduate and First-Professional Students

    In 1992-93, 2.7 million students were enrolled in graduate or first-professional programs in American colleges and universities.6 The majority (61 percent) were enrolled in master's degree programs (figure 1). Another 10 percent were working on doctoral degrees, and 11 percent were pursuing first- professional degrees in medicine, law, or theology. The remaining 18 percent were enrolled in nondegree graduate programs (such as professional education programs) or were taking courses at the postbaccalaureate level without being enrolled in a degree program.

    Master's Degree Students

    Graduate education at the master's degree level is predominantly a part-time activity: 83 percent of all master's degree students were enrolled part time and/or part year in 1992 93 (table 1). Many students wait until their 30s or even later to pursue a master's degree. In 1992-93, their average age was 33 years (compendium table 1.3). What students study at the master's degree level appears often to be work related: about one-half of all master's degree students were enrolled in either education or business programs (29 percent and 21 percent, respectively) (table 1). Reflecting their age and predominantly part-time and/or part-year attendance pattern, about one-half of the 92 percent of master's degree students who were independent had family incomes of $30,000 or more. The average income for part- time and/or part-year master's degree students was $37,600 (compendium table 1.6).

    Of the students pursuing master's degrees in 1992-93, 82 percent were white, non-Hispanic. Females outnumbered males overall (55 percent to 45 percent), but especially in health and education, where females accounted for 78 percent and 75 percent of total enrollment (compendium table 1.9). Forty-two percent of all master's degree students were married, and 46 percent had dependents (counting their spouses) (table 1).

    Figure 1 Percentage distribution of graduate and first- professional students according to degree program and attendance pattern: 1992-93


    Figure 1

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.




    Doctoral Degree Students

    Doctoral degree students in 1992-93 had somewhat different characteristics than master's degree students. They were much more likely to have attended full time, full year (45 percent compared with 18 percent) and were distributed across a wider range of fields of study (table 1). In contrast to master's degree students, doctoral students were more likely to be male (62 percent) than female (38 percent). Females were particularly underrepresented in engineering/computer science/mathematics (16 percent) (compendium table 1.9). Doctoral students had somewhat lower incomes than master's degree students, on average (compendium table 1.6), reflecting the fact that they were more likely to be full-time students (table 1).

    In terms of age and family situations, doctoral students were similar in many respects to master's students. For example, they were about as likely to be independent with dependents, and were the same age, on average (33 years old) (table 1 and compendium table 1.3). Seven percent of doctoral students were black, non-Hispanic, and 3 percent were Hispanic (proportions similar to those of master's degree students). Doctoral students were much more likely than master's students to be Asian (15 percent compared with 7 percent).

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    Table 1 Percentage distribution of graduate and first-professional students according to selected demographic and enrollment characteristics, by degree program: 1992-93


    Total \1 Master's Doctoral First-professional
    Total 100.0 100.0 100.0 100.0 Gender Male 46.4 44.5 61.8 56.9 Female 53.6 55.5 38.2 43.1 Race American Indian /Alaskan Native 0.8 0.6 1.0 0.5 Asian/Pacific Islander 7.5 6.9 15.4 8.8 Black, non-Hispanic 6.4 6.3 6.5 7.1 Hispanic 4.0 3.8 3.1 4.0 White, non-Hispanic 81.4 82.3 74.1 79.5 Age 23 years or younger 11.4 10.1 7.6 25.9 24-29 years 34.7 36.1 32.9 48.7 30 years or older 53.9 53.9 59.4 25.5 Marital status Not married or separated 59.0 58.3 62.3 74.2 Married 41.0 41.7 37.7 25.8 Dependency status Dependent 8.6 7.9 5.5 16.1 Independent without dependents 46.6 46.5 52.1 56.5 Independent with dependents 44.9 45.6 42.4 27.3 Income (independent students only) Less than $10,000 14.6 11.4 15.2 46.4 $10,000 19,999 15.9 14.9 26.5 18.6 $20,000 29,999 18.2 19.7 18.6 11.2 $30,000 49,999 29.6 30.9 24.6 15.5 $50,000 or more 21.6 23.1 15.0 8.2 Attendance pattern Full-time, full-year 25.4 17.5 44.6 76.8 Part-time and/or part-year 74.6 82.5 55.4 23.2 Field of study \2 Arts and humanities 9.8 9.5 14.7 7.2 Social/behavioral sciences 7.9 8.3 13.2 3.2 Life and physical sciences 7.4 6.4 17.4 3.8 Engineering/computer science/ mathematics 10.9 11.8 18.2 1.5 Education 25.6 28.7 13.7 0.8 Business/ management 16.0 21.2 6.5 2.4 Health 11.9 7.6 8.0 43.2 Law 4.4 0.3 1.9 35.0 Other 6.0 6.3 6.3 3.0

    \1. Includes students in graduate programs other than master's, doctoral, and first-professional.

    \2. Students in first-professional programs should not, by definition, have fields of study other than arts and humanities, health, or law. Students in other fields were misclassified due to errors in student reporting or in coding.

    NOTE: Each column shows the percentage distribution within each row variable. Percentages may not sum to 100 due to rounding.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.


    The relatively large number of Asian doctoral students is due in part to the large number of Asian foreign students. When only U.S. citizens, permanent residents, and temporary residents eligible for federal aid are considered, only 7 percent of doctoral students in 1992-93 were Asian. In contrast, 54 percent of doctoral students with student visas or in other categories not eligible for federal aid were Asian.7

    In 1992-93, 19 percent of all doctoral students were not U.S. citizens or permanent residents (compendium table 1.4). It is interesting to note that more than one-half of the foreign students in doctoral programs were pursuing degrees in one of two fields: engineering/computer science/math (34 percent) or science (21 percent) (compendium table 1.8). At the doctoral level, foreign students made up a sizable portion of the total enrollment in science (23 percent) and engineering/computer science/math (36 percent) (compendium table 1.9).

    First-Professional Degree Students

    Students seeking first-professional degrees tended to be younger than master's or doctoral students (with an average age of 28 years compared with 33 years for master's or doctoral students), and they were much more likely than either doctoral or master's degree students to enroll full time, full year (77 percent compared with 45 percent and 18 percent, respectively) (compendium table 1.3 and table 1). Thirty-five percent of first- professional degree students were studying law, while 43 percent were in health fields. Sixteen percent were still dependent on their parents for financial aid purposes; those who were independent were less well off financially than master's or doctoral students, with almost half (46 percent) having incomes of less than $10,000 (table 1 and compendium table 1.6).

    Compared with master's or doctoral students, relatively few first-professional degree students were married. Like master's or doctoral students, however, a large majority (80 percent) were white, non-Hispanic. Males outnumbered females 57 percent to 43 percent in first-professional programs (table 1).

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    Cost of Graduate and First-Professional Education


    The cost of enrolling in a graduate or first-professional program as a full-time student for a full year depends on the degree program and type of institution selected.8 In 1992-93, the average total of tuition, fees, and living expenses ranged from $13,300 for full-time, full-year master's degree students at public, nondoctoral institutions to $26,300 for full-time, full- year first-professional students at private, not-for-profit institutions (compendium table 1.10). The major difference existed in tuition and fees. On average, tuition and fees were higher for first-professional education than for master's or doctoral programs, and at private, not-for-profit institutions than at public ones (compendium table 1.10 and figure 2). Nontuition costs (including living expenses) averaged $10,000 12,000 regardless of degree program or institution type.

    For part-time and/or part-year students, the cost of attending is not as easy to measure meaningfully. If a student is employed full time and working on a master's degree in the evening, for example, it is somewhat misleading to call that student s housing and food bills an educational expense. In practical terms for that student, the real cost of attending is the tuition paid. For students attending public institutions on a part-time and/or part-year basis, the average tuition and fees in 1992-93 ($1,600 at the master's level and $2,300 at the doctoral level) were relatively modest for someone working and earning their average incomes ($35,200 for master's students and $32,200 for doctoral students) (compendium tables 1.11 and 1.6). For these students, average tuition and fees amounted to 5 percent and 7 percent, respectively, of their average income. The situation was similar for part-time and/or part-year master's students attending private, not-for-profit institutions (who had average tuition costs of $3,400 and an average income of $41,000). Their average tuition and fees were 8 percent of their average income.

    On the other hand, part-time and/or part-year doctoral students at private, not-for-profit institutions had an average tuition of $5,100 and an average income of $34,300. These students would probably be more likely to need financial assistance in order to attend. For them, average tuition and fees amounted to 15 percent of their average income. First- professional students at public institutions and private, not- for-profit institutions, with average tuitions of $4,700 and $8,800, respectively, and average incomes of $28,100 and $28,200 would also probably be likely to need aid. For them, average tuition and fees amounted to 17 percent, and 31 percent, respectively, of their average income.

    The Role of Loans in Financing Graduate and First- Professional Education


    For undergraduates, the general expectation is that parents should pay for their children s education to the extent that they are able. At the graduate and first-professional level, in contrast, students are considered independent of their parents for financial aid purposes unless they are under 24 years old and are claimed by their parents as a tax exemption for the calendar year during which they are enrolled. In 1992-93, relatively few master's or doctoral students were considered financially dependent on their parents for financial aid purposes (8 percent and 6 percent, respectively), but 16 percent of first- professional students were in this category (table 1). Most of these dependent first-professional students were probably traditional-age undergraduates who enrolled in first-professional education soon after earning their bachelor s degree.

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    Figure 2 Average tuition and fees for graduate and first professional students, by institution control, degree program, and attendance pattern: 1992-93

    Figure 2


    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    To finance their education, graduate and first-professional students may use their own earnings and savings, perhaps a spouse s earnings and savings if they are married, and sometimes contributions from family or friends. In addition, first- professional students have access to various types of financial aid. The major forms of aid for graduate and first-professional students are grants, which do not have to be repaid; loans, which must be repaid according to prescribed terms; and assistantships, which provide a stipend in exchange for teaching or research duties.

    Grants, which include scholarships, fellowships, and tuition waivers, may come from federal, state, institutional, or other sources. Employers represent the largest of these other sources, but corporations, unions, foundations, fraternal organizations, community groups, and other organizations also provide some scholarships or fellowships. At the graduate and first- professional levels, grant aid is most frequently awarded on the basis of academic merit rather than financial need.9

    Most loans are provided through federal loan programs, although some states and institutions have their own programs as well. Graduate and first-professional students have access to the same major loan programs as undergraduates Stafford, Perkins, and Supplemental Loans for Students (SLS) but they have higher annual and cumulative borrowing limits in some cases. For example, in 1992-93, graduate and first-professional students could borrow up to $7,500 per year in Stafford loans (up to a cumulative limit of $54,750 for undergraduate and graduate loans), while undergraduates were limited to $2,625 annually in their first 2 years and $4,000 per year once they reached 3rd-year status, up to a total of $17,250. Graduate and first-professional students could also borrow up to $18,000 in Perkins loans (including their undergraduate borrowing) and could borrow $20,000 cumulatively through the SLS program ($4,000 per year) in addition to their Stafford loans. Like undergraduates, graduate and first- professional students must demonstrate financial need to participate in the Stafford and Perkins loan programs.

    Assistantships are awarded at the discretion of the student s academic department or school. Although assistantships are considered institutional aid because they are distributed at the institution s discretion, federal research grants are a major source of funds awarded as assistantships.10

    Overall, 39 percent of all graduate and first-professional students received some type of financial aid in 1992-93 (compendium table 2.1). This is about the same as the proportion of undergraduates who were aided (40 percent).11 About the same proportions of graduate/first-professional students and undergraduates borrowed (19 percent and 18 percent, respectively), but graduate/first-professional students were less likely than undergraduates to receive grants (23 percent compared with 33 percent).12

    Although only 9 percent of graduate and first-professional students were considered dependent on their parents for financial aid purposes, 18 percent received contributions from their parents (averaging $5,400 for those with this type of financial help) (table 2). In addition, 5 percent borrowed an average of $3,700 from their parents in 1992-93. About one-quarter (26 percent) had spouses who worked, and some of them (they earned an average of $28,900) may have contributed a portion of their earnings to help pay their spouses educational costs. Finally, many students worked. In 1992-93, 87 percent of master's students, 70 percent of doctoral students, and 54 percent of first-professional students worked while enrolled (table 3).

    The overall percentages of graduate and first-professional students participating in financial aid programs and receiving financial assistance from their parents hide considerable variation by degree program and attendance pattern. Master's and doctoral students with the same attendance patterns had somewhat similar aid patterns, but they differed markedly from first- professional students with similar attendance patterns. Within each degree program, students who were enrolled full time, full year received different types and amounts of aid from those who were enrolled part time and/or part year. Figures 3 and 4 show the details of aid patterns by degree program and attendance pattern. The discussion here focuses on how borrowing fits into these patterns.

    Students Enrolled Full Time for the Full Year

    A substantial majority of the students who attended full time for the full year in 1992-93 received financial aid: 63 percent of master's degree students, 70 percent of doctoral degree students, and 77 percent of first-professional students (figure 3).

    Master's Degree Students. The 63 percent of full-time, full-year master's students who received aid received an average of $10,200 in 1992-93. About one-third of all full-time, full- year master's students borrowed through a student loan program, and 13 percent received loans only. Students who had loans only borrowed an average of $8,400, about the same as the average for all students with loans ($8,200), which includes students with other types of aid as well as loans. Students with grants and loans borrowed an average of $8,100, and students with loans and other combinations of aid borrowed an average of $7,900.13

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    Table 2 Percentage of graduate and first-professional students with contributions and loans from parents, average amounts received by assisted students, percentage with a spouse who worked, and average amount earned by spouses with earnings, by attendance pattern and degree program: 1992-93


            Contribution from parents   Loan from parents   Spouse who worked
                           Average             Average                 Average
                  Percent  amount       Percent  amount       Percent  earned
    
    Total* 7.5 $5,402 5.1 $3,684 26.2 $28,855 Full-time, full-year Total* 33.8 6,648 8.6 4,861 15.5 26,555 Degree program Master's 31.9 5,832 8.2 4,070 15.9 29,156 Doctoral 19.1 5,252 5.6 5,036 20.6 29,113 First- professional 44.9 8,186 10.6 5,981 11.1 22,310 Part-time and/or part-year Total* 11.7 4,154 3.8 2,712 30.4 29,303 Degree program Master's 11.5 4,091 3.8 2,748 29.8 29,394 Doctoral 14.6 4,983 3.9 - 25.4 27,205 First- professional 25.6 5,618 5.6 5,791 22.0 29,817

    -Sample size is too small for a reliable estimate.

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



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    Table 3 Percentage of graduate and first-professional students who worked while enrolled and average hours worked per week, by degree program: 1992-93

                         Percent who worked   Average hours
                          while enrolled      worked per week
    
    Total* 82.6 35.9 Degree program Master's 86.8 36.9 Doctoral 70.3 31.8 First-professional 53.9 23.3

    -Sample size is too small for a reliable estimate.

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



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    Figure 3 Percentage of full-time, full-year graduate and first- professional students receiving various types of aid and average amounts, by degree program: 1992-93


    Figure 3

    NOTE: Grants include scholarships, fellowhips, tuition waivers, and employer aid.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



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    Figure 4 Percentage of part-time and/or part-year graduate and first-professional students receiving various types of aid and average amounts, by degree program: 1992-93


    Figure 4

    *Too few cases for a reliable estimate.

    NOTE: Grants include scholarships, fellowships, tuition waivers, and employer aid.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    On average, financial aid covered 60 percent of the total costs for master's degree students who were enrolled full time, full year.14 In addition to financial aid, some of these students received financial help from their families. About one- third (32 percent) received direct contributions from their parents, and 8 percent borrowed from them (table 2). Some may have received help from a spouse: 16 percent had spouses who worked, and spouses who worked earned an average of $29,200.

    Doctoral Degree Students. Seventy percent of doctoral students who attended full time, full year in 1992-93 received financial aid (figure 3). They received slightly more, on average, than master's students ($12,500 compared with $10,200). The composition of the aid packages awarded to master's and doctoral students was similar in most respects, but doctoral degree students were more likely to receive other combinations of aid, primarily because they were more likely to have assistantships (27 percent compared with 18 percent). Full-time, full-year doctoral students had larger grants and assistantships than their master's-level counterparts, on average, but their average loan amounts were similar.

    Although the majority of full-time, full-year doctoral students in all fields received financial aid, there appeared to be considerable variation by field of study in the percentages receiving aid and the types of aid received (compendium table 2.3b). For example, full-time, full-year doctoral students in life sciences or engineering were much more likely than their counterparts in education to receive assistantships (37 percent and 44 percent compared with 11 percent). However, in most cases, small sample sizes make it impossible to determine which differences are true differences and which are statistical artifacts.

    For full-time, full-year doctoral students, financial aid covered 69 percent of their total costs, on average, somewhat more than the proportion for master's degree students attending full time, full year (60 percent) (figure 3).15 Perhaps because of this fact, full-time, full-year doctoral students were less likely to get financial help from their parents. Also, like master's degree students, some had spouses who worked.

    When examining aid patterns for doctoral students, it is important to keep in mind that 19 percent of all doctoral students are not U.S. citizens, permanent residents, or do not have a type of temporary visa that makes them eligible for federal aid (compendium table 1.4). Foreign doctoral students are therefore less likely than U.S. citizens to have loans and more likely to have assistantships (compendium table 2.3). Similarly, the aid patterns for Asian students reflect the large number who are foreign students.

    First-Professional Degree Students. First-professional students who attended full time, full year used financial aid extensively, especially loans. Seventy-seven percent received some kind of aid, and 68 percent had a package that included loans (figure 3). The average loan was $13,900 in 1992-93, considerably more than the average amount borrowed by full-time, full-year master's or doctoral students ($8,200 and $9,900, respectively). Students with loans only borrowed an average of $14,200, about the same as those with loans as part of a package including other types of aid.

    On average, full-time, full-year first-professional students had 65 percent of their costs covered by financial aid. Those attending public institutions had a slightly greater percentage covered (68 percent) than those attending private, not-for-profit institutions (63 percent).16 Full-time, full-year first- professional students were more likely than their master's or doctoral counterparts to receive direct contributions from their parents (45 percent compared with 32 percent and 19 percent, respectively) (table 2). However, compared with master's or doctoral students, fewer had spouses who worked.

    Students Enrolled Part Time and/or Part Year

    Loans played a less important role for graduate and first- professional students who were enrolled part time and/or for only part of the year, partially because they were not eligible to participate in federal loan programs if they were enrolled less than half time. At least 37 percent of master's, 21 percent of doctoral, and 5 percent of first-professional students were in this category (compendium table 1.5).17

    In each degree program, students who attended part time and/or part year had very different aid patterns from their counterparts who attended full time, full year. In addition, first-professional students who attended part time and/or part year differed from their graduate student counterparts (figures 3 and 4).

    Master's Degree Students. Among master's degree students who attended part time and/or part year, 28 percent received financial aid (compared with 63 percent of their full-time, full- year counterparts) (figures 3 and 4). Employers were an important source of grants: of the 18 percent who received grants, one-half (9 percent) received employer aid, a type of grant (compendium table 3.1). About 10 percent of part-time and/or part-year master's degree students borrowed. Their average loan was $5,700 (about $2,500 less than the average loan for full-time, full-year master's students).

    Doctoral Degree Students. Doctoral students enrolled part time and/or part year were more likely than their master's-level counterparts to be aided (44 percent compared with 28 percent) (figure 4). In addition, they were more likely to have grants and assistantships, but were less likely to borrow. The average amounts of each type of aid (including loans) were greater at the doctoral level.

    Compared with their full-time counterparts, part-time and/or part-year doctoral students were less likely to receive each type of aid (figures 3 and 4). The average amount of an assistantship was about the same regardless of attendance pattern (about $9,400). This is not surprising because assistantship amounts are normally based on the amount of work done, not on financial need or merit.

    First-Professional Degree Students. First-professional students who attended part time and/or part year were less likely than their full-time, full-year counterparts to receive any aid (57 percent compared with 77 percent) (figures 3 and 4). They were also less likely than full-time, full-year first professional students to borrow (46 percent compared with 68 percent), but were still much more reliant on loans than were part-time and/or part-year master's or doctoral students. Twenty- five percent of part-time and/or part-year first-professional students had loans only (averaging $11,400).

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    Types of Borrowing and Amounts Borrowed


    Almost all graduate and first-professional students who borrowed took out Stafford loans. Overall, 19 percent borrowed, and 18 percent borrowed through the Stafford loan program (table 4). About one-half of Stafford loan recipients (or 9 percent of all students) borrowed the maximum amount allowed ($7,500 in 1992-93). Relatively few full-time, full-year master's or doctoral students (10 percent) used the SLS program, and fewer still took out Perkins loans.18 Only 3 percent of master's or doctoral students who attended part time and/or part year borrowed the maximum Stafford loan.

    The situation was quite different for first-professional students. Among those who attended full time, full year, 66 percent took out Stafford loans averaging $6,900, and 52 percent borrowed the maximum allowed. First-professional students also used other loan programs to a greater extent than master's or doctoral students. Thirty-eight percent borrowed an average of about $3,700 through the SLS program, which has an annual limit of $4,000, and 19 percent borrowed an average of about $2,700 through the Perkins loan program (designed for students with exceptional financial need). Unlike master's or doctoral students, many first-professional students who attended part time and/or part year borrowed as well: 46 percent borrowed an average of $11,200.

    Students needing to borrow more than the maximum allowed by the Stafford loan program had to look for other sources. Of the students with the maximum Stafford loan, 52 percent had SLS loans and 23 percent had Perkins loans in addition to their Stafford loans (table 5). Overall, 7 percent of graduate and first- professional students had SLS loans and 3 percent had Perkins loans.

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    Table 4 Percentage of graduate and first-professional students with various types of loans, average amounts received, and percentage with the maximum Stafford loan, by attendance pattern and degree program: 1992-93


                                                    Percent                 
                     Any loan       Stafford loan    with        SLS loan         Perkins loan 
                         Average           Average    max.            Average            Average
                  Percent amount   Percent  amount  Stafford  Percent  amount    Percent  amount
    
    Total* 18.9 $9,232 17.5 $5,924 9.3 7.0 $3,557 3.0 $2,525 Full-time, full-year Total* 43.3 11,102 41.1 6,413 26.3 19.2 3,646 9.0 2,709 Degree program Master's 32.3 8,177 30.5 6,058 15.1 10.0 3,442 5.0 2,690 Doctoral 25.8 9,919 23.9 6,265 15.6 10.0 3,760 3.5 2,400 First- professional 67.8 13,931 65.6 6,931 51.8 38.3 3,687 19.3 2,748 Part-time and/or part-year Total* 10.5 6,610 9.4 5,190 3.4 2.8 3,346 1.0 2,022 Degree program Master's 10.3 5,741 9.3 4,942 2.9 2.1 3,164 0.9 1,886 Doctoral 7.3 7,938 6.8 5,957 3.2 1.6 - 0.8 - First- professional 45.6 11,238 42.0 6,499 28.0 22.8 3,665 6.2 2,124

    - Sample size is too small for a reliable estimate.

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



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    Table 5 Percentage of graduate and first-professional students with SLS and Perkins loans, by degree program and Stafford loan status: 1992-93


                   All students*      Master's       Doctoral    First-professional    
                   SLS   Perkins    SLS  Perkins   SLS  Perkins    SLS   Perkins
    
    Total 7.0 3.0 3.5 1.6 5.4 2.0 34.9 16.4 Stafford loan status None 0.6 0.2 0.4 0.1 0.5 0.2 2.8 1.1 Some, less than max. 20.3 9.2 14.8 7.6 9.9 6.1 39.5 20.3 Maximum 52.0 22.9 38.9 18.9 50.0 17.3 60.9 28.2

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    Not all borrowing took place through student loan programs; some graduate and first-professional students reported borrowing from their families. Among students who attended full time, full year, 11 percent of first-professional, 8 percent of master's, and 6 percent of doctoral students borrowed averages of $6,000, $4,100, and $5,000, respectively, from their parents (table 2). Among master's and first-professional students, those who attended part time and/or part year were less likely to borrow from their parents.,

    Loans Relative to Total Aid

    Examining the ratio of loans to total aid provides a measure of the extent of students reliance on loans. Table 5 shows the average percentage that loan aid was of total aid computed for students with any aid and for students with loans. For example, among all students with financial aid, loans made up 41 percent of their total aid; among students with loans, loans made up 83 percent of their total aid.

    Again, the differences by degree program are striking, with first-professional students clearly shown to be the most dependent on loans (figure 5). Among full-time, full-year first- professional students with financial aid, loans amounted to 76 percent of their total aid on average, compared with 39 percent for master's degree students and 27 percent for doctoral students (table 6). Limiting the calculation to students with loans, the ratios were obviously much higher. Among first-professional students with loans, loans averaged 87 percent of their total aid.

    Except for doctoral students, loans as a percentage of total aid were about the same for full-time, full-year and part-time and/or part-year students. For part-time and/or part-year doctoral students, an average of only 11 percent of their aid was in the form of loans.

    There was a difference between public and private, not-for- profit institutions in the average percentage of loans to total aid only for full-time, full-year doctoral students. For these students, loans made up 37 percent of total aid at private, not- for-profit institutions (where their average costs were higher, as shown in compendium table 1.10) and 20 percent at public institutions (figure 5).

    Cumulative Amounts Borrowed


    To this point, the discussion has focused on debt incurred in one year, 1992-93. However, many students borrow during more than one year of their graduate or first-professional education, and some borrowed as undergraduates as well. Thus, cumulative borrowing is important to examine along with annual borrowing. In NPSAS:93, students were asked to report the total amount they had borrowed for undergraduate and graduate education, including loans from parents, relatives, friends, and other sources, in addition to loans obtained through student loan programs. The cumulative amounts borrowed by students who completed their programs in 1992-93 are described in this section. Overall, 33 percent of all graduate and first-professional completers had borrowed for their graduate or first-professional

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    Figure 5 Average percentage of loans to total aid for graduate and first-professional students, by degree program, institution control, and attendance pattern: 1992-93


    Figure 5

    SOURCE: U.S. Department of Education, , 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

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    Table 6 Average percentage of loans to total aid, by attendance pattern and degree program: 1992-93


    All studentsFull-time, full-yearPart-time and/or
    part-year
                                                                  
                         Aided     Students   Aided     Students   Aided      Students
                        students  with loans  students with loans  students  with loans
    
    Total* 40.5 83.1 51.8 81.5 31.2 85.3 Degree program Master's 33.4 80.8 38.5 74.4 31.0 85.1 Doctoral 19.8 70.6 26.6 71.7 11.1 67.0 First-professional 75.3 87.1 76.4 86.8 70.0 88.1

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    professional education (table 7).19 Forty-one percent had borrowed as undergraduates, and 20 percent had borrowed both as undergraduates and as graduate/first-professional students. Fifty-five percent had borrowed for one or the other or both.

    First-professional completers were the most likely to have borrowed at the postbaccalaureate level (65 percent compared with 30 percent of master's degree students and 40 percent of doctoral students). The average amount first-professional completers had borrowed ($38,900) was about twice as much as the average amount borrowed by doctoral students and almost four times as much as that borrowed by master's students. First-professional completers in 1992-93 who had borrowed for undergraduate and/or first- professional education had an average cumulative debt of $41,600. However, those who had borrowed for both undergraduate and first- professional education had an average cumulative debt of $52,600.

    Although doctoral students were less likely than master's students to have borrowed in 1992-93 (figures 3 and 4), they were more likely to have borrowed for their graduate education by the time they completed their program and to have borrowed more, on average. Since doctoral degree programs are longer than master's degree programs, this is not surprising. When borrowing for undergraduate education is considered as well, master's and doctoral students were about equally likely to have borrowed for one or the other or both (about 54 percent), although the average cumulative amount borrowed was greater for doctoral students ($21,200 compared with $11,900).

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    Table 7 Percentage of graduate and first-professional completers who borrowed from any source for undergraduate and graduate education and cumulative amounts borrowed, by degree program: 1992-93


                                                             Both graduate/    Graduate/first-
                                         Graduate/first-   first-professional  professionaland/
                     Undergraduate        professional     and undergraduate   or undergraduate
                             Average             Average            Average             Average
                    Percent  amount     Percent  amount     Percent amount     Percent  amount
    
    Total* 41.4 $7,698 33.3 $15,225 19.5 $22,826 55.2 $15,670 Degree program Master's 41.5 7,479 30.4 9,964 18.1 17,557 53.9 11,870 Doctoral 38.6 8,276 40.1 19,275 24.1 23,975 54.6 21,189 First- professiona l49.1 10,968 65.4 38,900 37.2 52,640 77.3 41,597

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    NOTE: The cumulative amounts borrowed were unknown for some students who were known to have borrowed. Therefore, the sample sizes used to calculate the percentages who borrowed were larger than the sample sizes used to calculate the average amounts. Cumulative amounts borrowed include student borrowing from all sources, including parents, relatives, and friends, in addition to borrowing through student loan programs. However, the amounts do not include parent borrowing.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    Figure 6 compares the cumulative amounts borrowed by completers for undergraduate and/or graduate/first-professional education,by institution control. In doctoral and first- professional degree programs, those attending private, not-for- profit institutions for their postbaccalaureate studies had borrowed more, on average, than those in public institutions.

    Table 8 shows the percentage distribution of graduate and first-professional students who completed their programs in 1992-93 and who had borrowed for their undergraduate and/or graduate education according to the cumulative amount they had borrowed. The substantial majority (about 90 percent) of master's degree completers had borrowed less than $20,000 for undergraduate and/or graduate education combined. Among doctoral degree completers who had borrowed, relatively few had borrowed more than a total of $50,000. Among first-professional degree completers who had borrowed, indebtedness was particularly great for students in the health field: 14 percent had borrowed $75,000 99,999, and another 13 percent had borrowed $100,000 or more. Among law school completers, approximately half had borrowed $20,000 49,999, and approximately another quarter had borrowed $50,000 99,999.

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    Figure 6 Cumulative amounts borrowed by graduate and first- professional completers for undergraduate and/or graduate/first-professional education, by degree program and institution control: 1992-93


    Figure 6

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.


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    Table 8 Percentage distribution of graduate and first-professional completers who borrowed for undergraduate and/or according to the cumulative amount borrowed, by degree program and field of study (first-professional students only): 1992-93


              Less than   $10,000-   $20,000   $30,000   $50,000   $75,000   $100,000
               $10,000     19,999     29,999    49,999    74,999    99,999    or more
    
    Total* 51.7 26.9 7.2 7.9 3.8 1.3 1.3 Degree program Master's 58.2 31.8 5.2 3.8 1.0 0.0 0.0 Doctoral 45.9 23.2 9.4 13.5 3.3 1.0 3.7 First- professional 11.5 16.3 18.4 23.8 16.8 7.2 6.0 Field of study (first-professional only) Health 9.8 10.9 14.9 19.4 18.7 13.8 12.6 Law 8.0 16.1 22.5 29.8 19.2 4.5 0.0

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    NOTE: Cumulative amounts borrowed include student borrowing from all sources, including parents, relatives, and friends, including borrowing through student loan programs. However, the amounts do not include parent borrowing. Percentages may not sum to 100 due to rounding.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    Differences Between Borrowers and Nonborrowers

    Graduate and first-professional students who had borrowed through student loan programs in 1992-93 were more likely than those who had not borrowed to have grants or assistantships and were more likely to have received financial support from their parents (table 9). The average amount they received from their parents, however, was less. Students without loans received $6,000, on average, from their parents, while those with loans received $3,700. Likewise, being married with a spouse who works appears to reduce the need to borrow. Borrowers were less likely than nonborrowers to have had a spouse who worked (16 percent compared with 29 percent), and their spouses who worked earned less, on average ($21,600 compared with $29,900).

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    Table 9 Percentage of graduate and first-professional students with various types of financial aid and family support, by loan status: 1992-93


                                                       Contribution     Spouse with
                       Grants        Assistantships     fromparents       earnings
                            Average         Average           Average           Average
                   Percent  amount  Percent  amount   Percent  amount   Percent  earnings
    
    Total* 23.0 $3,803 6.8 $7,387 17.5 $5,402 26.2 $28,855 Loan status in 1992-93 No loan 19.2 3,677 6.4 7,719 15.6 6,035 28.9 29,890 Loan 39.5 4,066 8.3 6,282 25.8 3,652 15.9 21,568

    *Includes students in graduate programs other than master's, doctoral, and first-professional.

    SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.



    Conclusion

    There are notable differences by degree program and attendance pattern in the proportions who borrow and in the average amounts borrowed. These differences reflect the lengths of their programs, their tuition and fees, and the varying amounts of grants and other aid received.

    Master's degree students, whose programs tend to be relatively short and who attend primarily part time and/or part year (83 percent), were the least dependent on loans. About 10 percent of those who attended part time and/or part year had borrowed in 1992-93. Of those who completed their master's degree in 1992-93, 30 percent had borrowed for their graduate education, accumulating an average debt of $10,000 for graduate education. This amount includes borrowing from all sources, including families and friends, in addition to borrowing through student loan programs.

    Doctoral students have longer programs than master's degree students and are more likely to enroll full time, full year (45 percent in 1992-93). About one-quarter (26 percent) of the full- time, full-year students had borrowed in 1992-93. Relatively few (only 7 percent) of those who attended part time and/or part year found it necessary to borrow. By the time they had completed their programs, 40 percent of doctoral degree students finishing in 1992-93 had borrowed from some source for their graduate education. Their average cumulative debt for graduate education was $19,300.

    First-professional students, who pay the highest tuition, on average, and who attend mostly full time, full year (77 percent), were by far the most dependent on loans. About two-thirds (65 percent) had borrowed an average of $38,900 for their first- professional education by the time they graduated. Loans tend to account for a much greater proportion of total financial aid for first-professional students than for master's or doctoral students: 75 percent for first-professional students in 1992-93, compared with 33 percent for master's degree students and 20 percent for doctoral degree students. The total indebtedness is particularly great for first-professional students in health (primarily medical students). Fourteen percent of borrowers completing their program in 1992-93 had borrowed between $75,000 and $99,999 to pay for their undergraduate and/or first- professional education, and another 13 percent had borrowed $100,000 or more.

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    Footnotes


    1.The College Board, Trends in Student Aid: 1983-1993 (New York: College Entrance Examination Board, 1993), 3.

    2.The College Board, Trends in Student Aid: 1983-1993, 10.

    3.The College Board, Trends in Student Aid: 1984-1994 (New York: College Entrance Examination Board, 1994), 3. The federal government subsidizes interest payments and guarantees repayment of defaulted Stafford loans for financially needy students. Beginning in 1993-94, Stafford loans became available to all students, but unless financial need is demonstrated, the interest rate is not subsidized.

    4.The financial aid program descriptions and maximum award amounts used in this report all refer to the 1992-93 award year. Some changes in federal financial aid programs have occurred since then. For information about current limits, call the Department of Education at 1-800-4-FEDAID.

    5.First-professional degree programs include the following: medicine (M.D.), chiropractic (D.C. or D.C.M.), dentistry (D.D.S. or D.M.D), optometry (O.D.), osteopathic medicine (D.O.), pharmacy (D. Phar.), podiatry (Pod.D. or D.P.), veterinary medicine (D.V.M.), law (L.L.B. or J.D.), and theology (M.Div. or H.H.L. or B.D.).

    6.This number is larger than the 1.9 million reported by the Integrated Postsecondary Education Data System (IPEDS) primarily because IPEDS includes only fall enrollment, while NPSAS:93 includes all students enrolled at any time during 1992-93.

    7.U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

    8.Total costs are student-reported; tuition and fees are usually institution-reported. See the Glossary in appendix A for more detail.

    9.Arthur M. Hauptman, Students and Graduate and Professional Education: What We Know and Need to Know (Washington, D.C.: Association of American Universities, 1986), 56.

    10.Students and Graduate and Professional Education: What We Know and Need to Know, 58.

    11.U.S. Department of Education, National Center for Education Statistics, Financing Undergraduate Education (Washington, D.C.: 1995).

    12.The largest grant program available to undergraduates, the Pell grant program, is not available to postbaccalaureate students.

    13.U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

    14.The proportions at public and private, not-for-profit institutions were similar (61 percent and 58 percent, respectively). U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

    15.Again, the proportions were similar at public and private, not-for-profit institutions (68 percent and 70 percent, respectively). U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

    16.U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Graduate Data Analysis System.

    17.Four percent of all graduate and first-professional students were known to be enrolled part time, but the exact amount of time they were enrolled was unknown.

    18.The Perkins loan program is much smaller than the SLS program (about $900 million compared with $2.3 billion nationally for both undergraduates and graduates in 1992 93).

    19.This includes student borrowing from all sources, including parents, relatives, and friends, in addition to borrowing student loan program. However, it does not include any borrowing that parents may have done themselves to help pay for their children s education and therefore does not represent all borrowing to finance postsecondary education.


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