Study on student debt of priests, religious finds it can be a barrier to vocations | National Catholic Register

A new study on student debt by a major Catholic research group, released today, sheds light on the challenges that debt poses for future Catholic priests and religious, as well as for American dioceses and religious institutes.

Researchers have found that a high-needs student loan debt can be a barrier to entry into the job market, as some candidates voluntarily decide not to pursue a career due to debt, and in rarer cases, a religious institute or diocese may ask a person to delay or withdraw their candidacy due to high levels of student debt.

The study, conducted by the Center for Applied Research in the Apostolate (CARA) at Georgetown University on behalf of the Labouré Society, was designed to measure the impact of educational debt on men and women who inquire about and apply to religious life or seminary. It also examined the policies and practices of religious institutes and dioceses regarding vocation seekers and applicants with student debt.

John Flanagan, executive director of the Labouré Society, noted that canon law requires that those entering religious life be free of debts they cannot repay. Among other things, he said, the Labouré Society, which provides financial and spiritual support to those seeking to pursue a vocation, has observed that those seeking to enter the priesthood or religious life wait until later in life to finally pay off their debts.

“It’s hard to pay off debt when you take a vow of poverty,” Flanagan told EWTN News. “Yes, those who enter diocesan life receive a stipend, but for many, that burden (of debt) can be more than they can pay off with that priestly stipend.”

Labouré says it has helped more than 400 people raise $11 million to pay off student debt over the past 20 years. Flanagan said the group did so by trying to invite others into the professions of those struggling with debt.

“It’s really about evangelism and invitation. We work with candidates to help them share their story and invite others to share their story,” he said.

The study consisted of questionnaires sent to 196 diocesan vocation directors and vocation directors of 742 male and female religious institutes. Of the respondents, 185 major superiors and two diocesan vocation directors reported that the survey did not apply to them because they had not had any candidates in the past five years. Ultimately, 42% of the diocesan vocation directors and 37% of the religious institutes contacted were able to participate.

“The Labouré Association intends to use the findings of this report to continue to adapt its programming to serve religious communities and dioceses across the country,” the organization said.

Dioceses and archdioceses

The average number of priests among the dioceses that responded was 111, and an average of 18 seminarians were in formation. The dioceses that responded also reported that they were in contact with 306 serious discerners—about 35 per diocese—about the priesthood.

Overall, of these serious inquiries, nearly one-quarter have student debt. However, this number was not necessarily evenly distributed, as 4% of the dioceses that responded reported that more than three-quarters of their serious inquiries had student debt. A similar percentage of formal candidates to the dioceses brought with them student debt.

The nine dioceses that responded reported that 23 serious inquirers did not enter seminary because of student debt, which is 3 percent of the total number of serious inquirers with educational debt. In addition, a total of 17 dioceses that responded asked 26 serious inquirers with educational debt to delay their application until the debt was paid or reduced.

Only two dioceses that responded (out of 56) reported a total of two people who submitted formal applications and were rejected due to educational debt.

Large dioceses were more likely than small dioceses to report that their serious candidates had debts. However, the average amount of debt brought to small dioceses far exceeded the average amount brought to large dioceses. The average debt of a candidate for the priesthood at the time of acceptance is $68,333 for small dioceses, $23,286 for medium dioceses and $21,864 for large dioceses, the study found.

When it comes to policies governing the assumption of a seminarian’s student debt, more than half of the dioceses that responded said they have a written policy or accepted practices regarding educational debt. The most common way dioceses deal with educational debt is by asking candidates to defer repayment of their loans, with 85% saying they ask their candidates to do so. Half of the dioceses that responded said they assume the candidates’ debt and pay it off over time.

More than 3 in 5 dioceses (63%) that respond to the survey assume educational debt upon ordination, while an additional 12% do so only after the candidate has begun theological studies. Smaller dioceses are more likely to assume a candidate’s debt at the seminary level than larger dioceses.

When it comes to the most common means of repaying student debt, nearly 4 in 10 dioceses or their candidates received funds from individual donors or diocesan patrons, followed by the Knights of Columbus Vocations Fund.

Nearly one-fifth of dioceses said they were struggling financially because candidates or members were in debt for their studies.

Men’s and women’s religious institutes

Responding institutes had an average of eight formal candidates since the beginning of 2018—an average of 10 for each male institute and seven for each female institute. The number of applications ranged from 87 to zero, and half of all responding institutes reported having no more than six candidates since January 1, 2018.

At least one-fifth of the religious institutes that responded said they had seen an upward trend in the amount of student debt their respondents carried, the study found. Those who responded said an average of 1 in 4 serious respondents brought home student debt — more than $45,000 on average — over the past four years. Men brought home an average of $39,685 in debt, while women brought home an average of $48,555.

Of those who formally applied, about 21% have student loan debt, with an average amount of $23,000.

Nearly half of institutes take on their candidates’ debt—a total of $2 million over the past five years—with women’s religious institutes more likely to do so than men’s. Most institutes have a limit on how much of a candidate’s debt they will take on, with an average of $30,000 for men and $10,000 for women.

Of the institutes that do take on the debts of candidates, most take on the debt and repay it over time. Almost half of the institutes ask candidates who leave to repay the institute for student debts they have incurred. In addition, about half of these institutes take on the debt during the person’s candidacy, postulancy, or novitiate, while half wait until the person is temporarily or permanently professed. Some institutes pay only the interest on the candidate’s loans, not the principal.

Eighteen responding institutes said they rejected 28 serious inquirers because of their educational debt, which is 2% of the total number of serious inquirers with educational debt. A larger number of institutes reported that they asked candidates to delay their applications until their educational debt was settled or reduced.

“This is higher than the rate of educational loan taking out by other students,” the study says.

“During the 2020-2021 academic year, 37% of undergraduate students attending a public, four-year college took out student loans averaging $7,500. During the same year, 53% of undergraduate students at private, nonprofit institutions (including Roman Catholic colleges and universities) took out student loans averaging $8,800.”

This debt burden has had a dampening effect on religious institutes. About 1 in 5 report that at least some serious applicants did not continue the application process because of their educational debt, a figure slightly lower among formal applicants. One in 10 institutes has experienced financial burdens because of the educational debt of candidates or members.

When it comes to policies for addressing student debt, more than two-thirds of the religious institutions that responded to the survey have a written policy or adopted practice regarding student debt. Many of them use resources from the Knights of Columbus and the Labouré Society to help them pay off their debts.