As college enrollment rises, so does debt

WASHINGTON -- With college enrollment growing, student debt has stretched to a record number of U.S. households -- nearly 1 in 5 -- with the biggest burdens falling on the young and the poor.

The analysis by the Pew Research Center found that 22.4 million households, or 19 percent, had college debt in 2010. That was double the share in 1989, and up from 15 percent in 2007, just before the recession, representing the biggest three-year increase in student debt in more than two decades.

The increase was driven by higher tuition costs, as well as rising college enrollment during the economic downturn.

The biggest jumps occurred in households at the two extremes of the income distribution. More well-off families are digging deeper into their pockets for costly private colleges, while lower-income people seeking better jobs are enrolling in community colleges, public universities and other schools to boost their resumes.

Because of the sluggish economy, fewer students than before are able to settle into full-time careers immediately after graduation, contributing to a jump in debt among lower-income households, according to Pew.

As a share of household income, the debt burden was the greatest for the poorest 20 percent of households, or those making less than $21,044. In all, 40 percent of U.S. households headed by someone younger than 35 owed college debt.

Noting the growing rise in enrollment since 2010, Richard Fry, a Pew economist who analyzed the numbers, said: "Until college enrollment peaks, I would not expect the amount of outstanding student debt to level off."

The study is based on the Survey of Consumer Finances, conducted every three years and sponsored by the Federal Reserve. The numbers are as of 2010, the latest available.