Debt is rising the fastest at Texas four-year institutions. Borrowers take advantage of the higher loan limits available at higher grade levels. Indebtedness increases with rises in the cost of attendance. Financial assistance from non-loan sources might not do much to reduce the borrowing of students who are inclined to borrow in the first place. Further research using a better data source should be conducted to verify this result.
High indebtedness is related to an increased likelihood of repayment problems.
Borrowers who consolidate their TG loans have much less difficulty during repayment. The probability of a delinquency drops by 12 percentage points for a borrower who consolidates within 400 days after separation from school. Borrowers with multiple loan holders have a much greater likelihood of repayment problems. The probability of delinquency rises by eight percentage points and the likelihood of default increases by six percentage points for borrowers who have more than one loan holder.