The data are somewhat dated, but according to Department of Education’s National Postsecondary Student Aid Study (NSPAS), in 2012:
- 71% of students graduating from 4-year colleges had student debt averaging $29,400
That breaks down as follows:
- 66% of students graduating from public 4-year institutions had student debt averaging $25,550
- 75% of students graduating from private non-profit institutions had student debt averaging $32,300
- 88% of students graduating from private for-profit institutions had student debt averaging $39,950
That’s a snapshot for a single year, but cumulative totals are broadly similar. The NSPAS survey is done once every four years, so 2016 data should be out probably sometime in 2017 or 2018.
I believe the default rate is also much higher for graduates of for-profit institutions. If you’re worried about how much the government is “on the hook” for, you should be concerned not only about the total amount of debt out there, but also default rates. Most student debt is repaid. It’s the students at for-profit institutions that are likeliest to borrow, carry the highest average debt, and are most likely to default.
The high rate of borrowing and average debt load at private non-profit colleges and universities may seem surprising to some because we’re accustomed to hearing about the generous FA policies of a handful of elite private schools, but the vast majority of private colleges and universities do not have large endowments, do not meet full need, and charge high tuition. Not only do many or most students at these schools get “gapped,” but to the extent students do receive need-based aid, loans are almost invariably part of the mix. Of course, the situation is much the same at most public universities, but because tuition is lower, a smaller percentage of students need to borrow, and those who do borrow tend to borrow less on average. As tuition rises at public universities, however, the gap appears to be narrowing. According to NSPAS, average debt at public institutions increased by 25% between 2008 and 2012, while the increase at private non-profit institutions was only 15% over that same period.