Beware of College Loan Statistics

“People think students are drowning in debt, and there is a small proportion of students that borrow an exorbitant amount, but most students graduate with a manageable debt load,” said Sandy Baum, an author of the brief"
"For bachelor’s degree recipients who did borrow, the median loan debt was $19,999" (NY Times).

• Unfortunately, when an educated consumer reads information, one needs to read the fine print in the College Board summary of the Department of Education’s National Postsecondary Student Aid Study:
• "PLUS loans, loans from friends and family, and credit card debt are not included" (pg.1)
• "Results from the NPSAS data for nonfederal student loans should be considered estimates. While the data are the best available estimates for a recent graduating cohort, there are limitations to their accuracy" (pg. 4).
• Since undergraduates are restricted by Stafford loan limits, to not count Plus loans and parents paying out of their own pockets is highly questionable when many families use these options to fund college. Also, Private loan estimates are from student interviews.
• This survey does not look into the fact that many students are borrowing high amounts to go to private colleges with questionable payoffs as compared to public colleges.

http://professionals.collegeboard.com/profdownload/cb-policy-brief-college-stu-borrowing-aug-2009.pdf

http://www.nytimes.com/2009/08/12/education/12college.html?_r=2&hp