what does avg indebtedness mean?

College Search & Selection
1

<p>I wanted to be clear on what the phrase average indebtedness of a graduating class means.</p>

<p>For example, <a href="http://www.collegedata.com%5B/url%5D"&gt;www.collegedata.com&lt;/a> says that the </p>

<p>Average Indebtedness of
2005 Graduates $21,846 </p>

<p>(IWU)</p>

<p>Is this the avg amt of debt FOR THAT YEAR (of graduation)? Or does it mean what those graduate are carrying IN TOTAL AFTER ALL FOUR YRS?</p>

<p>The $21k seems almost like one year's amt of debt, since, after all, a yr of residential 4 yr college including tuition, board, and fees is, in the 20s-30s, isnt it?</p>

<p>If this is true, then it would be more like $21k x 4 = $80k of debt.</p>

2

<p>I believe it's total debt at graduation. I had $13k in total debt when I graduated.</p>

3

<p>It's the average indebtedness upon graduation (that is, all the school-related debt accumulated while in college). Very few people borrow to meet the entire cost of their education due to a combination of need-based financial aid, merit aid, contributions from parents, and money earned by students while in college.</p>

4

<p>
[quote]
The $21k seems almost like one year's amt of debt, since, after all, a yr of residential 4 yr college including tuition, board, and fees is, in the 20s-30s, isnt it?

[/quote]
</p>

<p>If you are thinking of private schools, the annual cost is closer to 45-50K. Some report total COA (cost of attendance) of 51-52K. The number you are quoting is about right for some large state universities, but low if you are looking at out-of-state rates. Some in-state publics are 20-30K, less if you commute.</p>

<p>Check the COA of the colleges you are interested in. And please, don't consider paying for the entire cost through loans, even if you can get the loans. The interest will kill you.</p>

5

<p>Average indebtedness only counts the loans taken out in the student's name. Doesn't begin to touch what parents may have to borrow for EFC.</p>

6

<p>thanks, all. So there is avg student indebtedness, which is the avg accumulated amt of debt+ for a given college for one student after 4 yrs...</p>

<p>and, behind the scenes, there is (probably)</p>

<p>avg family indebtedness - that is not reported.</p>

<ul>
<li>this would be amt of debt in the student's name after family contributions, grants and work study aid over the 4 yrs are taken into consideration.</li>
</ul>

7

<p>Yes, I believe this is the amount YOU will have to pay back, with interest, when you have finished your education.</p>

<p>I know people who barely finished paying back their student loans before their own children were applying to college. OUCH. Keep that thought in mind.</p>

8

<p>So does this average indebtedness figure include students who graduate without debt (thus dropping the average), or are they completely excluded from this calculation?</p>

9

<p>We finished paying off less than ten years ago -- fifteen years after graduation. Didn't buy a house until then, either.</p>

10

<p>Yes, the average indebteness include all graduates (those with zero debt and those with $150-200k in loans).</p>

11

<p>
[quote]
Yes, the average indebteness include all graduates (those with zero debt and those with $150-200k in loans).

[/quote]

Not necessarily true. If you are using the US News numbers, it specifically says
[quote]
"Average amount of debt," is the average cumulative amount borrowed by those students who incurred debt, not the average for all students.

[/quote]

<a href="http://www.usnews.com/usnews/edu/college/rankings/debtindex.php%5B/url%5D"&gt;http://www.usnews.com/usnews/edu/college/rankings/debtindex.php&lt;/a>
Since this is probably one of the more common sources for "average indebtedness," I wouldn't be surprised if most measurements of it that one sees are only for students who incurred debt.</p>

12

<p>^ True. You have to read the fine print to see what it surveyed.</p>