A few days ago, this infographic of average student debt by state was made popular on Digg. It shows the statewide average debt levels of college graduates per state. Where do you fall on the map?
It’s interesting to note that the Northeast has higher student loan debt averages because more students attend private colleges. In fact, I got into a private college in the Northeast for grad school, but I declined in favor of a way more affordable public college in my state of residence. Otherwise, this blog would be something like Extremely and Utterly Broke Grad Student.
I find it a little surprising that Iowa has the highest student debt average at $26,208. I would have expected a state with a higher cost of living, like New York, to top the list. I’m guessing it has something to do with the state of Iowa not having enough funds to provide sufficient financial aid to students at community colleges and public universities.
On the other hand, it comes as no surprise that Utah has the lowest student debt average at $13,266. In case you didn’t know, Utah is filled Mormons, and guess what? Mormons don’t drink. Just think of all the money they save by not buying booze every weekend (which, in college, also includes Thursdays and occasionally, all of the other weekdays too). Just kidding.
The infographic also lists the most expensive colleges based on total cost (tuition + room and board) for the 2008-2009 school year. Here are the 25 most expensive colleges in 2008-2009:
1. Sarah Lawrence College | $53,166
2. George Washington University | $50,312
3. New York University | $50,182
4. Georgetown University | $49,689
5. Connecticut College | $49,385
6. Bates College | $49,350
7. Johns Hopkins University | $49,278
8. Skidmore College | $49,266
9. Scripps College | $49,236
10. Middlebury College | $49,210
11. Carnegie Mellon University | $49,200
12. Boston College | $49,020
13. Wesleyan University | $49,000
14. Colgate University | $48,900
15. Claremont McKenna College | $48,755
16. Vassar College | $48,675
17. Haverford College | $48,625
18. University of Chicago | $48,588
19. Union College (NY) | $48,552
20. Colby College | $48,520
21. Mount Holyoke College | $48,500
22. Tufts University | $48,470
23. Bard College at Simon’s Rock | $48,460
24. Franklin & Marshall College | $48,450
25. Bard College | $48,438
None of the colleges I’ve attended made the list. However, I did get accepted into one of the colleges on the list, but maybe that’s why I didn’t end up going there.
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For a second, I thought the red #7 dot was right on my house on the map on top of Philadelphia! These kinds of studies are always very surprising. No one would ever guess that Iowa would have the highest student loan debt! I would have thought for sure it would have been a school in the Northeast corridor or Mid-Atlantic region.
Being in PA i fall in that state although my amount is about 3.5 times the amount for the state!
BYU is partially subsidized by church tithing. If you’re LDS, you get in cheaper (since the assumption is that you have and will be paying your tithe). IIRC, it’s about $3000 more per semester if you’re not LDS–and even then is still more affordable than many comparable private schools.
Iowa has a relatively high concentration of small private liberal arts schools compared to the rest of the midwest, which may be in part what’s driving up the cost. I went to one of these schools, but I can’t think of anything else that would make Iowa more expensive. (I was lucky to escape with no debt.)
interesting figures. Find anything on how the US compares with other countries?
Although income may explain some of the issue with Iowa, emphasis on education is higher than in other rural places like Arkansas or Mississippi. Iowa is heavily northern european in populace, and although it has two fine public universities, it also has a number of top, expensive private schools. That may also explain student indebtedness.
Interesting. The school I chose to attend because it gave me the best financial aid is on the list and the two other schools that wanted me aren’t on this list at all. (Only applied to 3 total.)
Three of the best schools in DC are on this list, however, there are good public options around like Maryland-College Park and George Mason.
I am curious how many of the students receive financial aid, especially among the most expensive colleges. 50,000 is incredible, what makes John Hopkins or Sarah Lawrence that much more valuable then other colleges? Do they offer stronger degrees? Better curriculum?
Dustin, et al. Typically, the rankings are built on faculty and other resources. The money magazines list them in terms of costs, and what you get for the money.
As a parent of three professionals, all graduates of the top private schools, there are two issues rarely mentioned that are as important as faculty, curriculum and other resources: quality of student peers (this is a huge driver among the top schools in terms of exposure, motivation and achievement); and two, quality of the schools network. All three of our daughters got fine jobs as a result of the alumni network of the schools.
Lesser schools, and even the large prominent Big Ten public schools lack the contacts with well-placed alumni. Pfeffer at Stanford Business school put it this way: the purpose of the few top business schools is to provide a selection process for the leading companies of America.
My nephew, a Stanford and Northwestern MBA covered all the costs (over $100K) in his first three years of work.
As a former prof at a small private university, I was well aware of what these few top schools provided, and it all panned out. This might be shocking, but my son-in-law did a medical residence at Penn (the Ivy). . . and his prof told him he could have a post-doc at Hopkins or Harvard, whichever he wanted. The offers were made before he applied. (He chose Harvard, and then taught there for six years). Of course, his undergrad was one of those top, highly expensive schools.
The issues reek of meritocracy. But that really is the game. Reducing it to money misses the point.
Dan, thank you for the excellent explanation but also the eye opening discussion. Being in the Big Ten myself, the alumni network is developing and getting stronger, but you are right, not as premier or as engaging as one in a top private school. So in your belief the college you go to has a lot to do with where you get hired and some of the success at least 3 years out of college?
I have 2 years before my first starts college. I am hoping for schlorships to pay for most of it.
Even in the Iowa students are paying on average 3200$/semester, that’s what we pay a year here in the North. It’s ridiculous that the states and the government don’t see the need to push funding for education. We have all this talk about how we need workers and new technologies but then we have students coming out of University with massive debt loads which’ll take them years to pay off. Plus the houses when they get new jobs and the vehicles. The system is basically taking a hammer to the kneecaps of the students and saying go run the marathon, by the end your knees should be better. Oh and why do University Presidents need to make more then president himself?
David,
Iowa? Who knew? I would have guessed that Massachusetts or New York might lead the list. Utah is a pretty inexpensive state for school (I went to grad school there), and your tongue-in-cheek comment about the cost of drinking actually could be somewhat on point. As a non-drinker, I was always amazed at how much my friends spent on booze in college (and the military). They could have funded their entire retirement annuity on what these kids would blow on a weekend of partying!
Jerry
Oh, alma mater, this is not one of those lists you want to be listed for in the top ten!
Also in semi-response to Dan Erwin, it’s great that it worked out for your nephew and your son, but as you say were a professor they clearly were already in that networking stratosphere (particularly as males, presumably white)–I wonder how accessible these networks are to first generation college graduates, graduates of colour, and students who might face other barriers. Can the costs be justified in these cases? Two more things–this kind of networking, even if helpful up until now, may not work as well in the next few years given the recession. So that pattern may (or may not) be changing.
And secondly, I agree that it is about meritocracy, but reducing it to money doesn’t make it ‘miss the point’ at all. It doesn’t reduce it to money, it reduces it to sticker price (which can be somewhat misleading, but gives an accurate if broad measure). And the money can only be summarily dismissed if that amount isn’t overwhelming–how many students and families will be turned off from applying due to these huge numbers? How many will be unable to attend? How many will drop out before completing a degree, after having accumulated large amounts of debt? How many won’t be able to take the post-college job gambles that lead to the upper echelon, well-paid jobs because of massive college debt? This is where the meritocracy truly takes effect.
@Jessica: Agreed. With some schools it is sticker price, however not with all by any stretch of the imagination. I just noticed that at the U MN (our state’s top public school) a little over 20% of students, with family income of less than $40,000 get a full ride. And students get proportional amounts until the family income is $140,000. The article made it clear that would not change in spite of the state’s cuts to the U. And in spite of the recession a great many private and public colleges are still giving scholarships of significant size. To a degree, perhaps to a significant degree, the education of kids is a family values issue. To my chagrin, I’m well aware that many of the money magazines are not at all helpful when it comes to kid values. They exist for parents to keep their money or invest in stocks, not in their kids. (Yeah…I’m occasionally hostile about that journalism) I’m exceptionally aware that plenty of Asian American families scrape, pinch, and do what ever is necessary to make certain their kids get a top education. And I know a number of African American families who have done the same thing. Of course, the demands of hard work are very strong with some American sub-cultures and not others. Candidly, although both our families settled in the states in the 1740-1750s, we both acted as immigrant families act–and we were consciously aware of the price that cost us. But it was a values issue far more than a money issue.
Let me clarify, I referred to my nephew and son-in-law. My son-in-law grew up in such a poor family that he still tears up talking about it in his 40′s today.
2nd clarification: Our three kids are WASP girls/women, not males. That means they are white. (A cue: some east coast schools are looking for WASPs to balance out the ethnics and minorities. That’s a hilarious fact. Penn turned themselves inside out to get our youngest. Even sat down and helped her write her papers…why? I was told by a friend at Harvard: “she’s a smart, blonde, cheerleader, motherhood, apple-pie and all the rest. She’d be an oppressed minority at Penn. And they’d love to have her. She stepped into an even narrower setting at Barnard/Columbia. Ha! Talk about an oppressed minority!)
3rd clarification: the notion of my knowledge base re networking was zip, non-existent until my eldest daughter and I spent nearly a week pouring over college catalogues form all across the nation, basically as a result of her high school counselor’s response that she deserved to go to one of the top 4 or 5 schools in the nation, and she can get in. I did not really understand networking until 25 years ago I got into business for myself and realized that I needed to understand the entire process and get my ass in gear. None of my faculty colleague’s kids went to top schools, save one son from a family of boys. We had to decide, and we had to bite the bullet. At one time we had three in top colleges the same year–and that was terrifying, absolutely terrifying. But again, for my wife and I, it was a values issue.
My nephew’s parents (Stanford/Northwestern) were blue-collar to the core, a half-semester of college between them. He would never have gone unless we saw that with his immense sports background, he had entre. He was brilliant, an unusual student, but the top schools came knocking because of the sports expertise–both Princeton and Stanford came after him. That was all merit, with a terrific amount of dedication and deliberate practice skills from skating. But it was practice, practice, practice.
You are correct that my daughters are not first generation college students. My grandmother had a year of college and taught high school, my wife’s grandfather taught school, although they both lived in rural Kentucky. Admittedly, that’s very unusual, but coincidental, too.
When I spoke of network choices, I referred to the fact that colleges want to network their students–color or whatever. All colleges want their students to be well placed in jobs. They’d be splitting their own throats not to want that. Alumni networks are availabe to all grads, and the grads that choose to use them inevitably get help. I really doubt that color, class or anything else affects that issue.
I am not so naive as to say that where there is a will there is a way. But there are far more opportunities available than most students ever access. Fact of the matter their are websites of immense values. Studyhacks…www.calnewport.com/blog is absolutely brilliant. Consistently so.
A major research caveat is in order: Never draw significant conclusions from a few examples. I haven’t given you any examples on any issue for which there is research support, except for Asian Americans. That is research-based info. The rest is purely my opinion. And as I often say about opinions, “my opinion and a buck will buy you a cup of coffee, nothing more.” Of course, I am thoroughly passionate about students and family strategy.
I would not normally share this much personal information, except it really is important for people to see and understand more detail about this issue. Having dealt with it for years with clients, who have come begging for the info, I recognize its importance. I cannot list the number of clients who came to me and said, “our kid’s planning for school. How do we go about this? What recommendations?” Or, “we’re considering these three schools. What guidance do you have?” People need to track down people with information. . . When I don’t know the answer, I dig until I do.
Almost missed the networking issue. There is immense research available on interpersonal networking. The best places to start are with Wayne Baker and Ron Burt (Baker is an easy read, Burt is tougher sledding). For pragmatic fun, you’ll want “Never Eat Alone.” Interpersonal networking ain’t going to change in any world. It’s the nature of the human animal, recession or no. Fact of the matter, research shows that the wired age has caused face-to-face networking to be more valuable than before. In a recession, interpersonal networking will just work slower. No other changes. Eventually you have to get off the internet, and go face-to-face. Although you can start with the web.
Best wishes…
that’s some good information, I think u also forget to mention Boston University which is about 60 k yearly….
Dan,
In response to your email, yea time wise sure, but value wise you made a great comment there.
1st: In response to almost everyone…I was speaking to a friend of mine who goes to goes to St. Thomas, and another who goes to another private school. I was absolutely amazed: they through around numbers of over ten thousand dollars scholarships like it was something that normally occurs. I realized then that the majority of excellent colleges give great scholarships to their students because of a great alumni network, fundraising, donations, and whatever else plays into that.
2nd: I’d like to restate Dan’s two points that I really loved and I have discussed with a multitude of my friends at the U: the students you work with and the alumni network make a VERY large difference in the school you go to…and that is what you pay for. It is a matter of engagement. Those two items must be closely looked at…I have definitely started looking at my old choices for colleges and I have asked myself whether or not I would have made a few different choices a year ago. (I love the Carlson School of Management though!) Being in the school for a year I have seen those two items play a major role in what you get out of college and the opportunities for enrichment.
3rd: “To my chagrin, I’m well aware that many of the money magazines are not at all helpful when it comes to kid values. They exist for parents to keep their money or invest in stocks, not in their kids.” Holy moly Dan, you have ought to write a book on this one. Someone needs to remind the baby boomer generation that their kids are their best investment, hands down.
4th: Bump Studyhacks…www.calnewport.com/blog
5th: Do you think it may come down to how much the student values college? If it is obvious he or she doesn’t care…well that translates into bad grades in high school or poor involvement which may transfer into not the best college…nice “jump” there. However, if the student valued his or her education with high regard, was involved in school, worked hard, was a leader among his or her peers, and devoted him or herself education in school and in life, then it should transfer. A good friend of mine, Alan Fine (professor at the U of M, Carlson School) said: “If you chase the world your dreams will not come, but if you chase your dreams, the world will chase you. Find your passion and go for it.” I grew up with a family who wanted me to go to a college that got a very nice bang for its buck, and a school that they still could be very proud of. Dan, I think you made a very good point here…apply to those top colleges if you believe you have a slight chance, keep your eyes OFF the amount, because you may realize that amount of money won’t matter when scholarships, financing, and the valuable experience rolls around.
Lastly: Do you think the very high price may motivate a student to value education more?
@Dustin: Re high price. I don’t really know. No research I’m aware of. I’ve observed behaviors all over the map.
I do believe, and here research supports me, that your peers in an organization have a great deal of impact on your behavior. I still remember walking down a sidewalk at the U Chicago, probably the most rigorous and demanding undergrad college in the nation, with my eldest daughter and her closest friend. I commented something to the effect that they must have a few “slow” students there. Her friend turned to me and commented that “absolutely every student at Chicago is very smart and very motivated.” That’s what peer pressure is all about. The classic comment at Chicago is that a social outing is midnight at Regenstein (the major l ibrary).
Oh yeah, for clarity sake, UChicago is where Obama taught.
Iowa really doesn’t surprise me. They have ridiculous fees (like energy fee) included with tuition, room & board, and lab fees. Instead of the school spending the money wisely, they instead splurge it on unnecessary things (they’re adding an A/C to the gym, which the majority of students when polled rejected, and they’re adding a gym fee to everyones tuition, even though they won’t see the new a/c until 6 years later). If that were improved than maybe they would offer better financial aid packages. One of my friends goes to Iowa, and just hearing and reading how the money is spent, lets me know why so many students are in debt. Luckily my friend got scholarships. Too bad Iowa was the closest college that offered their hard to find major.
OMG this is so much money for just one degree. But the good thing is that It pays back in the end.