Students who graduate from college often find themselves with an outstanding debt after graduating, and they may be more likely to borrow again to pay for it.
That’s why some students may decide to take out a loan to make up for the debt they left behind, according to new research from University of California, Berkeley.
The study, published online in the journal JAMA Internal Medicine, examined the effect of a $600 loan on student loan repayments.
The researchers also looked at whether students borrowed money to repay a debt in the past and whether that debt could be used to pay down a student loan.
The researchers found that graduates of the top four-year college programs received an average of $1.15 million more in student loan debt when they borrowed more than 10 years ago.
The loans are paid off with interest, and some borrowers who took out a 10-year loan in 2012 paid off their loans over 30 years.
However, the average debt paid off by borrowers who borrowed less than 10 to 20 years ago was $3,600.
The average repayment for students who borrowed between 10 and 20 years was $5,000, but it ranged from $3 to $15,000 for those who borrowed more.
While borrowers who paid back their loans in the 1990s and early 2000s paid off more than 80 percent of their debt in 10 years, they were less likely to repay their loans today, according the study.
The authors also found that borrowers who repaid their loans during the financial crisis were more likely than others to continue borrowing money to pay off their debt.
The students who had repaid their student loans in 2009 and 2010, for example, were also more likely today to have borrowed $1 million or more over the next decade.
For the next generation of students, the researchers said the situation is similar.
They said it’s important to understand how and why the average student debt is higher today than in the late 1990s, when students were more comfortable borrowing.
The loan forgiveness program that’s been available to borrowers since 2006 is known as Pay As You Earn.
It offers a five-year repayment program that includes forbearance and deferment fees.
Pay As If You Earn borrowers have to pay interest on their loans until they repay the loan.