by our College Data Analytics TeamThis page focuses on the debt students take on to attend Reading Area Community College— how much they borrow, how that debt is spread across the student body, and what it costs to pay back. The data below is drawn directly from federal sources.
Looking at the entering class at RACC, 21% of freshmen borrow to help pay for their first year, averaging $4,884 each, across private and federal loan sources.
The average federal loan is $4,884, which is 88.8% of the $5,500 federal limit that applies to a typical first-year dependent borrower. Keep in mind the all-undergraduate averages further down count federal loans only, unlike this private-plus-federal freshman figure.
Among all degree-seeking undergrads at RACC, 28% take out federal student loans, borrowing on average $6,237 annually. This works out to 27.7% greater than the $4,884 borrowed by freshmen.
Borrowing the same amount each year would add up to roughly $12,474 over two years and about $24,948 by the fourth year. This assumes steady federal borrowing and leaves out private and Parent PLUS loans.
| Undergraduate federal borrowing | Value |
|---|---|
| Share using federal loans | 28% |
| Average federal loan per year | $6,237 |
| Undergraduates with a federal loan | 942 |
| Total federal loans (one year) | $5,875,539 |
The median student at RACC borrows $8,250 in federal student loans.
| Borrower group | Median federal debt |
|---|---|
| All federal borrowers | $8,250 |
| Students who completed (graduates) | $8,750 |
| Students who withdrew | $8,250 |
Withdrawn-student debt matters because those borrowers carry the loans without the degree that helps repay them.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 RACC.
| Percentile | Cumulative Federal Debt |
|---|---|
| 10th percentile (lowest-debt students) | $1,700 |
| 25th percentile | $3,000 |
| 75th percentile | $14,250 |
| 90th percentile (highest-debt students) | $28,500 |
The spread between the lowest- and highest-debt deciles summarizes how variable outcomes are at RACC.
PLUS loans — taken out by parents or graduate students — add to the total cost of attendance financed by debt at RACC.
| Group | Borrowers | Median debt incl. PLUS |
|---|---|---|
| All borrowers | 413 | $12,260 |
| Completed (graduates) | 34 | $8,208 |
| Did not complete | 379 | $12,500 |
For students who completed, the median total debt including PLUS loans works out to a standard 10-year payment of about $97.6/mo.
Federal data lets us separate Stafford borrowers from the rest at RACC.
Stafford vs Non-Stafford (any year)
| Cohort | Borrowers | Median debt incl. PLUS |
|---|---|---|
| Used a Stafford loan | 399 | — |
| No Stafford loan | 14 | — |
Current-Year Stafford Borrowers
| Cohort | Borrowers | Median debt incl. PLUS |
|---|---|---|
| Stafford loan this year | 166 | $10,600 |
| No Stafford loan this year | 247 | $14,493 |
Repayment burden translates the debt figures into what a borrower actually pays each month. RACC.
Defaulting means failing to repay a federal student loan, which carries serious credit consequences. Two-year cohort default-rate data for RACC is shown below.
| Metric | Value |
|---|---|
| 2-year cohort default rate | 19.7% |
| Borrowers in the cohort | 1318 |
This rate follows a borrower cohort from the start of repayment through the two-year window the Department of Education uses.
Borrowing varies by family income, by first-generation status, and by dependency status.
Borrowing by Income Tier
| Income tier | Median federal debt |
|---|---|
| Low income | $9,450 |
| Middle income | $7,660 |
| High income | $6,571 |
First-Gen vs Continuing-Gen Borrowing
| Cohort | Median federal debt |
|---|---|
| First-generation students | $8,250 |
| Continuing-generation students | $7,600 |
By Dependency Status
| Cohort | Median federal debt |
|---|---|
| Dependent students | $5,618 |
| Independent students | $9,500 |
The Department of Education computes gap indicators that show how borrowing differs between student groups at RACC.
Subsidized vs. Unsubsidized Loans
Unsubsidized federal student loans accrue interest every month — even while you are still enrolled. Unless you pay that interest as it builds, the balance you owe at graduation can be noticeably higher than the amount you originally borrowed.
Worth Knowing
Declaring bankruptcy does not erase federal student loan debt. If you stop paying, the federal government can garnish a portion of your wages until the loans are repaid.
References
More about our data sources and methodologies.