Archive for Wednesday, May 31, 2006

2 of 3 college grads go into debt, owe an average of $19,202

May 31, 2006

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— Nearly two of every three undergraduate students are going into debt to go to college, owing an average of more than $19,000, most often to the government.

Among a dozen states sampled, New York students averaged the largest loans, while those in Oregon and Minnesota were most likely to have taken out loans. Kansas wasn't among the states studied.

About 65 percent of students who graduated in the 2003-2004 school year did so after getting student loans, according to the Department of Education's National Center for Education Statistics.

For students who took out loans, the average debt was $19,202. Of that sum, $17,022 came through federal loan programs.

The agency focused on 12 large, medium, and mid-sized states, but did not compile enough data from the other 38 states to create reliable statewide averages.

State dollars "are covering less and less of the cost of higher education, and we've had several years of double-digit tuition increases," said Melinda Voss, spokeswoman for the Minnesota state college and university system.

The overall amount of student loan debt soared in the mid-1990s but has been relatively flat in recent years.

Comments

Todd 9 years ago

Life's more than just making money. Isn't that the motto in Lawrence anyhow?

Yes, a mechanic with a tradeschool cert. makes more than a teacher with a master's degree but that's not really the point if your dream is to become a teacher.

GardenMomma 9 years ago

Try paying for grad school on student loans. As an undergraduate one can qualify for grants which do not need to be repaid. Grad students can only get loans or scholarships or if you're lucky tuition reimbursement from your employer.

And for students taking out loans to pay for medical or law school, the final loan amount can be astronomical!

Wilbur_Nether 9 years ago

bobberboy's comment is accurate in spirit if not in fact. But trade school isn't for everyone. What about those people who aren't cut out for a trade? Shouldn't they have an alternative--such as a bachelor's degree--that fits them? I think bobberboy is painting with too broad a brush.

Todd 9 years ago

I ran a quick calculator and see a 10 year loan at 6.5% interest with a balance of $20k has a payment of about $200/month. For a entry level teacher that's probably 10% of their gross salary but for other jobs college grads get it's a lower percentage.

I meantion teachering because it's a common field people know about with a gap between pay and education requirement. (you need a master's to start at $25-30k yr)

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