The Relationship Between Student Debt and Graduation Rates in the United States

Abstract

Student debt has become a topic of great debate in the United States. As it has become the largest source of debt, pursuing a college degree has become that much more important. As the federal and state governments have cut grants, student loans have become the primary source of financial aid for the vast majority of students. With the demand for college graduates, the cost of a college degree, and the level of outstanding student debt all increasing, it is essential to understand how these changes affect the average student. Furthermore, it is even more important to understand the attributes of institutions with the highest graduation rates. This study sought to understand how student debt influences graduation rates at institutions across the country to suggest meaningful policies that can enhance higher education in the United States and ensure that all students have the opportunity to complete their degree.