In the the 2007-to-2008 academic year there were 5.5 milion Pell loans. The average was for $2600. In the 2009-2010 academic year, the most current data, there were 8.1 million Pell loans. The average was $3700. These loans are also of a special nature. Typically, they are ineligible for cancellation under personal bankruptcy. There are also tax credits up to $2500 a year. This has benefited some 9.4 million students in the 2009-to-2010 academic year. While these are modest amounts compared to the cost of a college education, the main point is that an important part of the decline in the overall participation rate can be traced to the rise education enrollment. Educational institutions are fulfilling their economic function by keeping people out the labor market and increasing their skills.
In part, this may reflect the beginning of the retirement of the Baby Boom Generation, but the marked increase since the crisis began suggests other forces may be at work. There is no concrete evidence that explains it, but it is reasonable to suspect that the economic conditions are such that some, for example, may be choosing early retirement and others may be starting their own businesses. Data on loans against 401(k)s or early withdrawals, or liquidation of annuities, is only now beginning to be collected. There has been a rise in the value and number of loans from the Small Business Administration. In 2009, there were less than 50,000 such loans for a total of $14 billion. In 2011 there were more than 60,000 loans for about $25 billion.