Average student loan use declined during pandemic while grant aid rose

Student loan utilization has declined since reaching its peak during the Great Recession in 2011. The graph shows this drop by full-time equivalent (FTE) student, which is useful for contextualizing aidtrends with broader enrollment shifts. The average amount of federal loans issued per student last year ($3,780) was just $100 more than the average in 2001 ($3,680). In the same period, grant aid has more than doubled from $4,740 to $10,050 per student. 

Student loan use continued to fall through the economic downturn of the COVID-19 pandemic. Researchers attribute this sustained decline to a variety of factors, including tuition freezes, COVID-19 grant aid, and shifting enrollment towards institutions that award more scholarships, such as independents. April’s Issue Brief looks at student loan debt trends in more detail, with an attention to policies that expand postsecondary affordability.