New statistics on student loans show the cost of newly minted bachelor’s degrees continuing to rise. The latest report from the Institute for College Access and Success says the average debt for undergraduates sits at $28,400, up 2 percent from last year.
But the people with the really big debt loads are not the ones to worry about.
Across the country, student debt levels vary widely, from student to student and college to college. Lauren Asher, president of the institute, notes that even though the rate at which tuition is increasing is going down, “that’s still growth on top of growth on top of much-faster growth before—far exceeding inflation, let alone where family wages are.”
Asher says that even as unemployment rates among college graduates improve following the Great Recession, loan defaults still continue to rise.
But those students with the highest debt are typically entering more lucrative career fields.
“The people with the largest debts are the ones who went to professional school,” says Susan Dynarski, an economist at the University of Michigan. “They’ve got a B.A. already, typically the default rate for that group of students is about 3 percent.”
Compare that with students with just a bachelor’s degree defaulting at 16 percent, and even higher for those who drop out before graduating.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.