by our College Data Analytics TeamThis page focuses on the debt students take on to attend American InterContinental University System— how much they borrow, how that debt is spread across the student body, and what it costs to pay back. These figures are reported by the Department of Education and IPEDS.
Among first-year students at AIU Online, 64% of incoming undergraduates borrow in year one, averaging $7,252 each — a figure that counts both private and federal student loans.
On the federal side, the average loan is $7,298. This meets or exceeds the $5,500 cap on first-year federal borrowing for the typical dependent freshman. Keep in mind the all-undergraduate averages further down count federal loans only, unlike this private-plus-federal freshman figure.
Counting every undergraduate at AIU Online, 71% use federal student loans to help pay for their education, at an average of $8,482 each per year. That amounts to 16.2% above the $7,298 typical freshmen borrow.
Carrying that yearly figure forward comes to roughly $16,964 by year two and around $33,928 across a four-year program. The estimate holds federal borrowing constant and does not count private or Parent PLUS loans.
| Undergraduate federal borrowing | Value |
|---|---|
| Share using federal loans | 71% |
| Average federal loan per year | $8,482 |
| Undergraduates with a federal loan | 4,810 |
| Total federal loans (one year) | $40,799,185 |
Graduating and withdrawing students at AIU Online carry a median federal debt of $9,500 in federal borrowing.
| Borrower group | Median federal debt |
|---|---|
| All federal borrowers | $9,500 |
| Students who completed (graduates) | $31,000 |
| Students who withdrew | $7,571 |
Withdrawn-student debt matters because those borrowers carry the loans without the degree that helps repay them.
Half of all borrowers fall between the 25th and 75th percentiles shown below for AIU Online.
| Percentile | Cumulative Federal Debt |
|---|---|
| 10th percentile (lowest-debt students) | $2,000 |
| 25th percentile | $3,500 |
| 75th percentile | $23,295 |
| 90th percentile (highest-debt students) | $40,415 |
How wide this percentile range is tells you how much borrowing varies across students at AIU Online.
PLUS loans — taken out by parents or graduate students — add to the total cost of attendance financed by debt at AIU Online.
| Group | Borrowers | Median debt incl. PLUS |
|---|---|---|
| All borrowers | 1710 | $7,637 |
| Completed (graduates) | 424 | $9,071 |
| Did not complete | 1286 | $7,000 |
On a standard 10-year plan, the median completing borrower would pay about $107.86/mo.
Stafford loans are the federal direct-loan program most undergraduates use. The breakdown below separates borrowers who used Stafford loans from those who did not at AIU Online.
Any-Stafford Borrowers
| Cohort | Borrowers | Median debt incl. PLUS |
|---|---|---|
| Used a Stafford loan | 1690 | $7,791 |
| No Stafford loan | 20 | $2,272 |
Borrowers With a Stafford Loan This Year
| Cohort | Borrowers | Median debt incl. PLUS |
|---|---|---|
| Stafford loan this year | 1141 | $7,447 |
| No Stafford loan this year | 569 | $7,955 |
The indicators below describe what the typical debt costs to pay back at AIU Online.
A loan default — failing to keep up with federal student-loan payments — is one of the worst financial outcomes a borrower can face. The official Department of Education two-year default rate for AIU Online is shown below.
| Metric | Value |
|---|---|
| 2-year cohort default rate | 14.8% |
| Borrowers in the cohort | 20018 |
A lower default rate generally signals that graduates earn enough to manage their loan payments.
Median debt differs by income tier, first-generation status, and whether the student is financially dependent.
Borrowing by Income Tier
| Income tier | Median federal debt |
|---|---|
| Low income | $9,500 |
| Middle income | $12,667 |
| High income | $13,020 |
First-Gen vs Continuing-Gen Borrowing
| Cohort | Median federal debt |
|---|---|
| First-generation students | $9,500 |
| Continuing-generation students | $10,195 |
By Dependency Status
| Cohort | Median federal debt |
|---|---|
| Dependent students | $7,500 |
| Independent students | $9,500 |
These pre-calculated indicators summarize the borrowing gaps between cohorts at AIU Online.
The Difference Between Subsidized and Unsubsidized Loans
Subsidized loans pause interest while you are in school; unsubsidized loans do not. That difference compounds over four years, so the type of loan you take matters as much as the amount.
Worth Knowing
Federal student loans are not discharged in bankruptcy in all but the rarest cases, and the government can withhold part of your income or tax refund if you default.
References
More about our data sources and methodologies.