A college education is expensive, and taking out loans to cover expenses is necessary for many college students. However, debt levels are high for some graduating students, a scary fact for college seniors who are already anxious about finding entry-level work in a lackluster economy. College students worried about their debt load may want to take part-time jobs, apply for scholarships and avoid carrying credit card balances to avoid large post-graduate burdens.
How Much Is Tuition These Days?
How much college costs depends on the institution you attend. Generally, attending a college in your home state costs less, especially if your state provides significant financial aid. For example, personal finance magazine "Kiplinger" reported that the University of North Carolina at Chapel Hill provided the lowest cost education for in-state residents, based on 2009 data. Total costs, including tuition, room and board, were $13,731 per academic year before state assistance, but that figure was slashed to only $4,960 for in-state students receiving state funding. Although private colleges are usually more expensive, your education can be less expensive if you stay close to home. If you live in Connecticut, you can go to Yale for only $15,676 per year, while out-of-state students pay $46,950. St. Lawrence College, George Washington University and New York University were the most expensive colleges, with students paying more than $50,000 annually to attend one of these institutions.
Average Debt Loads
The New York Times reported in 2007 that the average debt load for a student graduating from a public college was $18,000 per year, while for private college graduates the number was $25,000. "Kiplinger" reported that graduating student debt levels were between $15,000 and $20,000 in 23 out of 50 states, while 26 out of 50 states reported that college graduates carried between $20,000 and $25,000 worth of debt on average. In most states, recent graduates earn between $30,000 and $40,000 per year, making the debt pill a hard one to swallow. These statistics don't account for the debt taken on by students pursuing graduate and professional degrees. More than 88 percent of law students borrow to fund their education and end up with $92,937 worth of debt after graduation. Of social work graduate students, 73 percent fund their education with loans and end up with $49,017 of debt at the end of their studies.
Lower Class Only Borrowing a Bit More
Surprisingly, students from lower income families only have slightly higher debt levels than their middle-income peers, according to 2007-2008 statistics from College Board. Of those with family incomes of less than $30,000, 68 percent borrow and take on about $16,800 in debt. Students with families earning between $60,000 and $89,999 have about the same amount of debt at graduation, with about 61 percent of them borrowing. Students that declare themselves as independent from their families borrow the most, graduating with about $20,000 worth of debt on average.
Credit Card Facts
Although carrying a balance on a high-interest credit card may not be a smart financial decision, statistics show that students do it anyway. Loan provider Sallie Mae reported that 30 percent of students used credit cards to cover tuition costs in 2009. Students were also charging other education expenses, such as textbooks and school supplies, to their credit cards more often. In 2004, the average amount of credit card spending on these items was $942. In 2009, it was $2,200. Only 17 percent of students reported paying off all their credit cards every month. The numbers suggest many students are letting high-interest debt contribute to their loan burden after graduation.
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