<p>I've noticed that at info sessions many schools (esp private/exp) will throw out a figure about average debt upon graduation. I remember feeling so reassured by that back when visiting pricey schools w/ older daughter. However, I found out that she/we would be highly 'above average', debt-wise, at some schools.</p>
<p>I've been wondering--does anyone know it that 'average' debt includes PARENT debt? Now that I'm thinking about it, I'm thinking not. Does anyone know how that average debt is figured?</p>
<p>Average debt ONLY includes student federal loan debts. It doesn’t include Parent loans, private loans, putting expenses on a credit card, borrowing against the equity of your home, etc. </p>
<p>That’s one reason why that data is misleading. Another is that many schools “gap” and parents resort to Plus loans to cover…and that isn’t shown ANYWHERE.</p>
<p>Some of these stats are just so misleading…like average need met. ugh. That only shows the average need met of those who accepted. It doesn’t include the crappy aid pkgs given to many (often low income). And, since many have high EFCs and the school can “meet need” with a student loan, it really can be misleading.</p>
<p>No, average debt does not include parent debt.
Are looking at schools that meet 100% need? It is assumed that parents will pay their EFC. Out of savings,loans & income. For schools that don’t meet need, then it is still assumed parents will pay EFC, but there will also be a gap between EFC & the package that is offered by the school, although for some schools, & for some students, merit aid may be offered as well.</p>
<p>Thanks m2ck and emerald. That’s what I was thinking was the case. With 2nd child going to college, I’ve pretty much learned to ignore averages like that anyway. The other one is always “90% of our students receive financial aid”–but of course I’ve learned that phrase includes student loans, initially I took it to mean institutional grants.</p>
<p>A friend just returned from pricey college trip for her son, all aglow that average debt at one school was under 20k. I didn’t want to burst her bubble til I checked with the experts…because my guess is they will not qualify for much if any need-based aid.</p>
<p>A friend just returned from pricey college trip for her son, all aglow that average debt at one school was under 20k</p>
<p>oh gosh! Does this lady have any idea of what her EFC might be and whether it’s affordable? Is she thinking that the school gives each child a huge grant and then the rest is paid with a $5k student loan? Does she know if the school “meets need”?</p>
<p>Even the so called “no loan” schools don’t graduate all their students “loan free.” All that means is that a student won’t be given a loan to meet need. However, a student can still borrow $5500 to put towards EFC and/or the parents can take out Plus to pay EFC.</p>
<p>The marketing spin is very well done, sadly parents and students don’t see the reality until they actually know someone who is willing to share with them the details of whatever they are or aren’t offered. The statistics from the school mean virtually nothing.</p>
<p>Unfortunately, because the real information comes so late to so many, the kids end up feeling cheated and disillusioned.</p>
<p>My friend does not know her EFC yet, but I think she’s going to check it out soon. I told her depending on the result, she could have a very different Financial Aid result than we did–I don’t really know her finances, so maybe their family WILL qualify for lots of grants…(also warned her re: Profile is a whole other ball game!)</p>
<p>bchan–the kids do get a big lesson on not falling for sales pitches that sound too good to be true! That is how I framed it. The school is trying to increase applications, they are going to paint the rosiest picture they can, but it is up to the student (and parents) to investigate the reality. In my humble opinion, too complicated a task for most 17 year olds to navigate on their own! </p>
<p>I feel badly for kids whose parents can’t help or whose parents believe the spiel from the schools without digging a bit.</p>
<p>I am hoping the whole process will be something my kids apply to big financial decisions later as well, ie, home buying. Why believe everything the seller tells you about the house? Why believe everything the bank tells you about what you qualify for? We were always qualified for WAY more debt than I thought prudent to take on. Buyer beware, I guess.</p>
<p>I wish like in the investments industry, more disclosure was required, but people probably wouldn’t read it anyway!</p>
<p>I don’t think that the schools are all to blame - people don’t do the research before applying to college - for what for most people, it the greatest financial expense - after deciding to have children in the first place. If you’re the type to buy a house you can’t afford - you may be the type to want choose a college you can’t afford. You have to do the research - the EFC is not what you will have to pay - it is the least you will have to pay. You can’t expect a college with COA of $55,000 to be practically free unless you are very lucky (you are extremely poor and your child is extremely brilliant). A college that says it meets full need may give you an extremely generous financial aid package but it doesn’t mean that you aren’t expected to dig deep and sacrifice for your child.</p>
<p>Some of the information given is worse than useless. It is outright misleading. A school has no way of knowing what loans a student and/or parents have taken unless it is tracked through the school. Also schools will use the most beneficial definition. I don’t know any more what those figures on the common data sets include.</p>