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Study: Student borrowing continues to soar, repayment declines

WASHINGTON American students continue to borrow more and more money to pay for increasing college costs, but the number of graduates paying them back is declining, CBS DC reported.

A new report released this month from the Department of Education finds that nearly two-thirds (64 percent) of graduates from the class of 2008 borrowed for college, compared with 49 percent of those graduating in 1993. And the average amount borrowed has skyrocketed from $14,000 in 1993 to $24,700 in 2008.

One year after receiving their degrees, only 60 percent of 2008 graduates were repaying parts of their borrowed money.

Nearly one-third (31 percent) of recent grads reported their monthly loan payments as greater than 12 percent of their income, a nearly 10 percent increase from 2000.

The average total price of attending both public and private non-profit 4-year institutions - in both current and inflation-adjusted numbers - has increased every year since 2002, the study reports. The College Board estimates that private student loan borrowing increased from $23 billion in 1992-93 to $100 billion in 2007-08.

Adding more debt, the report also showed that one-in-four students who graduated with a bachelor's degree in 2008 had enrolled in graduate school just a year later.

And 27 percent of 2008 graduates moved back with their parents or other family members within a year of graduation.