10
The majority of first and second quintile dependent students received both Pell and MAP. While
the percentage of students eligible for Pell grants dropped off for middle-income students, MAP still
supported at least half these students at public
universities and more than 80 percent at private
institutions. About 30 percent of fourth quintile
dependent students continued to be eligible for MAP at
private institutions and those students who received
either Pell or MAP grants at the fifth quintile – 3 percent
received MAP at private institutions - would be
expected to have some unusual family circumstances.
Tables 5.3 and 5.4 in Appendix 5 provide more detail on MAP and Pell awards.
Student Borrowing
Nearly 70 percent of all first quintile students at public universities borrowed an average of
$4,500 to attend college in FY2002. By dependency, 63 percent of first quintile dependents and 76
percent of first quintile independents at public universities had federal loans. Higher income students –
those less eligible for grant aid – borrowed at even greater rates and amounts; 78 percent of middle-income
dependent students at public universities borrowed an average of $4,800 annually in federal loans.
An even greater percentage of independent students borrowed and their average federal loan amounts
ranged from $5,100 for first quintile independents to $7,800 for fourth quintile students. Appendix 6
shows the breakdown of the percentage of students receiving loans, the average amount received, and the
average amount of loans across all students with need by dependency type. The sources of loans include
the Federal Government, the institution, and private
or alternative loans – those coming from any other
source. Overall, 68 of the students who
completed a FAFSA received Federal loans
compared to the less than 2 percent who each
received institutional or private loans.
At private institutions, 86 percent of all
first income quintile students borrowed an average
of nearly $7,200. More than 80 percent of all
dependents borrowed, but nearly 90 percent of
independent students borrowed; average loan sizes
for independents were more than $8,000 per year.
About 3 percent of all private institution students
also used alternative or private loan sources.
While the use of student loans was limited at community colleges, nearly 30 percent of third and
fourth quintile independent students borrowed through federal loan programs.
Federal loans include Perkins loans which
are very low interest rate loans and can only be
awarded to exceptionally needy students. The
incidence of usage for those loans was relatively
low. None were provided to community college
students although 34 percent of first quintile
dependents at private institutions received them.
Federal Stafford loans include subsidized loans,
unsubsidized loans, and Parent Loans for
Undergraduate Students (PLUS). Subsidized loans are available to students with financial need and are
Nearly 70 of all first income quintile
students borrowed to attend a public
university and nearly 80 percent of
middle-income students borrowed.
Figure 6
More than 6 percent of all students at
community colleges borrowed an average of
$3,000 compared to 74 percent who
borrowed an average of $5,000 at public
universities and 83 percent who borrowed
$6,700 at private institutions.
Incidence of Borrowing Federal Loans
Dependent Students
0
10
20
30
40
50
60
70
80
90
1st 2nd 3rd 4th 5th
Quintile
Percentage
Public 2-Year Public 4-Year Private 4-Year
