Tue, December 29, 2009
Variability In College Debts Highights the Need for Planning
A report released this month on indicates that while average college debt levels reached $23,200 for the graduating class of 2008, there is an extremely wide range of variation among student debts loads in different parts of the country and at different school. It’s not very enlightening to speak of an “average” college debt when average debt levels at specific institutions vary from $5,000 to $106,000.
The report, issued by the Institute for College Access & Success, is based on data voluntarily provided by almost 1,000 private and public colleges. 62% of graduates of the Massachusetts colleges had debt at graduation, with the statewide average at $23,125 – not far from the national average.
Nationwide, colleges generating the highest debt levels tend to be in northeastern states, probably reflecting higher average tuition relative to the rest of the nation, as well as a high proportion of students attending private colleges. As shown in the table, five of the states with the highest
The states with the ten highest college graduate debt levels
| District of Columbia | $29,793 |
| Iowa | $28,174 |
| Connecticut | $26,138 |
| New York | $25,950 |
| New Hampshire | $25,785 |
| Minnesota | $25,558 |
| Pennsylvania | $25,219 |
| Vermont | $25,047 |
| Rhode Island | $24,973 |
| Maine | $24,916 |
average college debt levels are in New England. The report also includes a list of the public and private colleges with the highest average debt levels among its 2008 graduates; of the 42 “high-debt” private colleges listed, eleven are in New England. By contrast, only one New England school – Williams College – was listed among the 28 lowest-debt institutions.
Among the colleges listed with the lowest graduate debt levels, there are several with unusual policies that tend to produce lower debt. Williams, Princeton, and Caltech have financial aid policies specifically intended to reduce costs for students from middle- and lower-income families. Berea College (KY) has no tuition; instead all the students work to cover tuition costs. Cooper Union (NY) provides full-tuition scholarships to all students.
For students and parents interested in comparing costs and debt levels at specific colleges, the Project on Student Debt website is a helpful resource.
