<p>I have been deciding where to attend and I came across this number in a search and it just baffled me. I hear about student debt being a huge issue in the news, yet this number isn't as high as I would predict. For instance, I could attend Northeastern University, but would pay full price, and with my own contributions, this would mean upwards of $200,000 of debt upon graduation. Or I could attend RIT, and even with my financial contributions, would be about $80,000 of debt upon graduation. So how does the average debt being about $30,000 make any sense? Do all students just go to public in-state schools? What is the secret to graduate only $30,000 in debt?</p>
<p>That’s approximately all a student can borrow in 4 years on his own. Private loans, parent PLUS loans, etc. are likely not included in figures like that.</p>
<p>$30k is about what the average student can borrow on his own. Not counting parent debt. Student debt.</p>
<p>And there are a lot of student who borrow nothing, so for them some other student has to have incurred $60k in debt to keep the average at $30k. For the first year, my kids are borrowing nothing. One has scholarships, the other chose wisely and has cut costs where she can (dorm and meal plan) plus she works and can stay within the amount I agreed to pay. </p>
<p>You cannot and should not borrow $80k for undergrad.</p>
<p>The average debt figure does not include private debt. Unfortunately, many students choose to attend schools they cannot afford, and they borrow not only federal loans (which comprise the average debt figure), but also private loans. Later, they often regret the private loans, which do not have the flexible repayment plans that federal loans have.</p>
<p>What is the secret to graduating with only $30,000 in college debt? Easy answer…go to a college that you can afford to attend. This can include contributions from your parents, scholarships, money saved, money earned at a job you have, possibly community college to save money, possibly living at home. There are plenty of ways to save money. </p>
<p>Going to a school like Northeastern at $50,000 a year should not be happening if the whole bill is being paid with loans,</p>
<p>This is across the range. Some go to 2 years community college and transfer, work while in school, have parent contributions, work a year, then return to school. Some incur significant debt. And yes, a lot go to the State U rather than a more expensive school, because you have to figure out what you can afford.</p>
<p>The vast, vast majority of students do not go to private institutions which cost upwards of $50,000 a year. To give a California example, the overwhelming majority of college bound students opt to go to a community college and work. If they transfer, it’s to a place like Cal State Fullerton or possibly even UC Irvine. It’s quite rare for students to start at a place like Chapman where they live on campus to the tune of >$40,000 a year.</p>
<p>Averages are worthless without standard deviations and medians.</p>
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<p>Usually, quoted figures like this are the average debt for students who accrued debt, so that the students with no debt are not averaged in.</p>
<p>For example, see the detailed information provided by Macalester:
<a href=“Distribution of Debt - Financial Aid Office”>http://www.macalester.edu/financialaid/loans/studentloansatmac/distributionofdebt.html</a></p>
<p>Also, in that population of student debt holders are people who attended trade or proprietary schools and poeple who did not finish undergrad degrees but did accumulate student debt. Lots of people. Too many, eh?</p>
<p>I live in an area where many (most?) of the families with teenagers are making well into six figures. I don’t believe the average student debt is that low. I know almost no one, who actually has loans, with under 40k in total debt. 30k is all the schools know about because that’s all that HAS to be reported to them. Well, that and Parent PLUS loans. In other words, that’s all the schools want to know about. In addition to co-signed private loans, there is lots of parent debt via private and home equity loans. I know many, many kids with at least 80k in debt. For our kids to attend a top tier non-merit granting university, as a family we’d need to borrow about 80k and we’ve just decided not to do it. </p>
<p>I do know people with no loans as well. They’re not filthy rich. They’re kids who’ve chased merit money at less prestigious schools. That’s the route we’ve decided to take. I’ve been hearing about lots of surprise rejections from our flagship’s honors college, so it looks like we’re going to need a few more safeties. (Alabama, here we come?!) </p>
<p>By the way, check out the parent PLUS thread - it shows that parents who use the PLUS loans at top schools are taking an average of $20k + . I believe the figures are for loans originated in a single year, not a cumulative total. The student related debt load in this country is terrifying. Even at the schools that brag about how they’re loan free. </p>
<p>Schools do know about private loans as funds are dispersed to the schools themselves.</p>
<p>I have no I trouble believing the average college debt is only 30k. (If you want a breakdown of debt by school, just check out the project on student debt). Keep in mind, that for most students, a 4 year college is local or the regional state U and the student lives at home. Many state schools have pretty good aid for their in- state students, too. It is possible to get by with the federal loan limits. You just may not get the sleep away experience at a well-known private.</p>
<p>None of my kids had student loans upon graduating. Big fat zero right there. My one son took out $3500 in Direct loans when he saw he was running low on his projections of what to pay, wanted to go on a trip in the summer, wanted to take course in the summer. But he repaid the entire amount in about a year and a half and won’t owe it at graduation. </p>
<p>The fact of the matter is that it’s difficult for undergrads to take out more than the Direct loan maximums which come to about that amount if the full amount is taken. Considering some kids take out less, that means some have taken out more, maybe some Perkins in addition, or supplemental Direct Loan upon parent declined for PELL. That’s really all that out there to take. Private loans, those co signed things are not included in this figure.</p>
<p>Actually that the average student debt is the maximum amount pretty much allowed is scary me. The average student borrows as much as he can. </p>
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<p>And many of their parents borrow as well. It’s terrifying. <a href=“http://chronicle.com/article/Parent-loan-debt-on-the-rise/134846/”>http://chronicle.com/article/Parent-loan-debt-on-the-rise/134846/</a> And that doesn’t even account for home equities, private loans, etc. The average Harvard PLUS loan taken out last year was a little more than $20k. Of course, only 278 parents took one out, which is a lot better than many schools, but it does show the problem with Harvard saying their kids can graduate debt free.</p>
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<p>Here’s one methodology used to calculate student debt. Like calculating grad rates, it is not perfect in that transfers are ignored, but I don’t think it’s correct to say the private loans are excluded from the calculations. </p>
<p>I think that the one downfall of a site like CC is that it offers a somewhat stilted representation of the “average” student. From reading posts here, it is very easy to start thinking that the majority of US college students are attending $50.000+ per year institutions, which is absolutely not true. I have no problem believing that the average student debt upon graduation is $30,000. Our 4 children have/will graduate with no college debt because we have only let them attend colleges that we can afford without loans. We saved for their educations and went into the college application process knowing what we could pay. We were fortunate that some of our kids got academic/talent scholarships that helped greatly, but they were all aware up front that they would only be able to attend some schools if they were able to get those scholarships.I get the impression that most people we know in our area are doing the same thing- their kids are attending colleges that are affordable for their families. We are in an area of So. Calif. where salaries are all over the place, and we know families with kids attending local CC’s because that is what they can manage, as well as families with kids who are full pay at $50,000+ schools because they are able to manage that. In general, I don’t think most families would even consider taking out $200,00 in loans for an undergraduate degree, although to regular posters/readers on this site, it starts to look like that is the norm. </p>
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<p>Some private loans will be included in the calculation (education loans certified through the college) and others won’t be.</p>