For all this time I thought I had $20,000 in student loans. According to my financial aid summary that I just received, however, I owe $19,000. 
It’s like getting a gift I haven’t been expecting. I guess my loan obligation puts me directly in line with the average college graduate. The American Council on Education has more in-depth information on amount of debt from different types of institutions and degree programs.
Also check out this 2004 report (pdf) from ACE about debt burden. It might be a bit dated as the data is from the 1990s. The report concludes that in general debt burden for students receiving their baccalaureate degree in the 1990s was manageable and unchanged at 7 percent. However, if borrowing levels continue to increase, interest rates rise, or recent graduate salaries decline, debt burden will increase.
According to an interesting article from the New York Times, apparently families equate the price of tuition with the quality of education – so that some colleges have increased their tuition (and aid) to attract more applicants.
Lucie Lapovsky, a consultant who was once president of Mercy College in New York, conducted a study asking students to choose between a college charging $20,000 and offering no aid, and one charging $30,000 and offering a $10,000 scholarship. Students chose the pricier option. “Americans seem to like college on sale,” Dr. Lapovsky said.
Totally disturbing. I knew Duke would be most likely to give me a big fat scholarship, too, since it was so expensive and not actually better than the schools it out-priced. I feel so manipulated.
That last tidbit is disturbing. So, people shop for education like the shop for body wash? It’s been long established in the retail industry that is you want people to buy more of your stuff, increase the price. It makes them think it’s somehow better than lower priced options. I can’t believe that works with college. It’s $20,000 either way!
Oh, but more importantly, it’s great that you $1,000 less than you thought! What a great surprise
Debt Hater – I guess it makes parents and students feel better that they’re getting a “deal” as opposed to paying full-price. And yes, I’m quite excited about being less in the red than I thought I was.
I like your post. No matter what amount of debt a person has, willingness to retire is the first step