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Debt load grows heavier for college grads

Email|Link|Comments (7) October 22, 2008 11:55 AM

By Peter Schworm, Globe Staff

Recent college graduates are carrying an average of more than $20,000 in debt, a growing burden that is outpacing starting salaries, according to a national study released today.

(The Project on Student Debt)

Graduates in the class of 2007 carried six percent more student loan debt than the class of 2006, while starting salaries for recent graduates rose just three percent in the same period, according the Project on Student Debt.

“The class of 2007 graduated before the financial downturn, but today’s tough economic times make high student loan payments even harder to bear,” said Robert Shireman, the project’s executive director. “Student debt levels are rising year after year, and starting salaries have not kept up. Now more than ever, students need information and counseling about all their options when they’re deciding how to pay for college and how to repay their loans.”

Average debt for the class of 2007 was $18,482 at public colleges and $23,065 at private colleges, the survey found.

Students in Iowa and New Hampshire graduate with the highest debt levels: $26,208 and $25,211, respectively. Those in Utah have the lowest average debt at $13,266. South Dakota, North Dakota, New Hampshire, and Iowa have the highest proportions of students graduating with student loans, at 81 percent, 75 percent, 74 percent, and 73 percent, respectively.

Massachusetts ranked 19th in average debt, with an average of $21,090, an 11 percent increase from 2006. More than 60 percent of graduates borrowed money to pay for college, which was about the national average.

7 comments so far...

5 Years of Architecture school = $100,000 in debt.
Starting Salary in 2006 = $42,000.

Is it really worth it?

Posted by Bobby123 October 22, 08 03:21 PM

Yes! Education isn't just about your starting salary when you get out. Education is personally enriching and makes for better decision-makers. We want a society of educated people. Better decisions can translate to better financial decisions which save money down the road. Also, starting salaries are just the beginning! Incomes will reach much higher for someone with a degree versus without.

Posted by econfun October 24, 08 08:40 AM

The trend of declining Federal and State support of higher education means more and more of the costs fall on students (often with crushing results). When students can no longer afford college, what next . . . college lite, OJT, college-for-the-rich, . . . no college? How will our nation solve the substantial problems of the future if higher education is no longer accessible to most people?

Posted by Gary October 24, 08 04:50 PM

For undergrad and graduate I am in over 60,000 dollars worth of debt. Forget bailing out the large institutions, how about giving us a break for simply taking out a reasonable loan to go to school? RIDICULOUS.

Posted by Kate October 29, 08 06:57 PM

Being that the real wage has not increased since 1973, no wonder we are all in debt. I, like Kate, have undergrad and grad degrees and a whopping $60,000 in debt--moreover, I make only $40,000per year (this is after three years of employment no less). Perhaps it is time to actually pay folks for their expertise, rather than doubling the work and lowering the pay. Welcome to an age where we all prosper LESS than the previous generation.

Posted by Cynthia October 30, 08 07:05 PM

I'm not sure where they are getting these averages. I go to public school in Colorado and with ayear worth saved up, and a year covered by colege credits, I'm still looking at $30,000-$35,000 in debt. How does that make sense?

Posted by Chris January 29, 09 01:20 PM

Yeah, the averages they are quoting sound like mommy and daddy payed everything but food and books for 4 years. I spent 2 years at community college and payed $3000 for 47 college credits to transfer into my degree at OU. Even after that huge break I will still graduate with $65,000 of debt for a bacholer's degree as a Professional Airplane Pilot while living with my grandparents.

Posted by Jordan August 4, 09 04:25 AM

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