distribution of federal student loan borrowers by balance\nincludes outstanding principal and interest as of…

distribution of federal student loan borrowers by balance\nincludes outstanding principal and interest as of the first quarter of 2024.\n1. which debt range contains the most borrowers? how many borrowers are in that range?\n2. how many student loan borrowers owe more than $100,000?\n3. the average starting salary for a college graduate is approximately $55,000. what percentage of student loan borrowers have less than $60,000 in debt?\n4. think ahead to the year 2035. predict one way you think this graph might change and explain your reasoning.\n5. a substantial fraction of borrowers owe less than $5,000. who do you think is represented in this debt range and why might the number of borrowers in this range be so large?

distribution of federal student loan borrowers by balance\nincludes outstanding principal and interest as of the first quarter of 2024.\n1. which debt range contains the most borrowers? how many borrowers are in that range?\n2. how many student loan borrowers owe more than $100,000?\n3. the average starting salary for a college graduate is approximately $55,000. what percentage of student loan borrowers have less than $60,000 in debt?\n4. think ahead to the year 2035. predict one way you think this graph might change and explain your reasoning.\n5. a substantial fraction of borrowers owe less than $5,000. who do you think is represented in this debt range and why might the number of borrowers in this range be so large?

Answer

Explanation:

Step1: Identify the highest - bar for Q1

The bar for the $20K - 40K$ range is the highest with 9.8 million borrowers.

Step2: Sum for Q2

Sum the number of borrowers in the $100K - 200K$ (2.4 million) and $200K+$ (1 million) ranges. $2.4 + 1=3.4$ million.

Step3: Calculate percentage for Q3

Sum the number of borrowers in the ranges less than $60K$: $7.6+7.5 + 9.2+9.8+4.2 = 38.3$ million. The total number of borrowers is $7.6+7.5 + 9.2+9.8+4.2+2.5+1.3+2.4+1=36.5$ million. The percentage is $\frac{38.3}{36.5}\times100\approx 79.7%$.

Step4: Prediction for Q4

One possible change: If tuition costs continue to rise and financial aid doesn't keep up, the number of borrowers in higher - debt ranges (e.g., $100K+$) might increase. This is because students would need to borrow more to cover their education expenses.

Step5: Explanation for Q5

This range might include part - time students who only needed to borrow a small amount for a few courses, or students who received significant financial aid and only had a small remaining balance to cover. Also, some students may have paid off a large portion of their initial loan and now have a small remaining debt.

Answer:

  1. $20K - 40K$ range, 9.8 million borrowers
  2. 3.4 million
  3. Approximately 79.7%
  4. The number of borrowers in higher - debt ranges (e.g., $100K+$) might increase if tuition costs rise and financial aid doesn't keep up.
  5. Part - time students or students with significant financial aid; they may have only needed to borrow a small amount or have paid off much of their loan.