Average Debts (how does this work?)

[anfleisch]

So the average debt is about $150,000 or less. These debts also do not directly relate to tuition costs or living costs in a city. However, most of these schools don't seem to advertise that they are giving out money. The money given seems to be in loans (federal or not). So, what is varying these debt numbers. I know most parents are not covering much if any of the costs, even if they helped or paid for undergraduate school.

Example: UPenn average debt is $113,000 and tuition is >40,000. Just four years of tuition is over 160k. Plus living is well over 250k at the schools estimated 67,000 per year.

So, are they fudging the numbers or is there something else here. Some threads have touched on this, but none I have seen really answer the questions.

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[RogueUnicorn]

what do you think. they give out money.

 

[ILikeDrugs]

I wonder if the schools are averaging the students who receive full-ride scholarships. A medical school charges $200,000, which includes tuition and living expenses. Five students matriculate for the 2010 class. One receives a full-ride, another a partial 50% scholarship, and the other 3 pay full price. The average amount of debt for the matriculating class of 2010 is $140,000.

 

[armybound]

I wonder if the schools are averaging the students who receive full-ride scholarships. A medical school charges $200,000, which includes tuition and living expenses. Five students matriculate for the 2010 class. One receives a full-ride, another a partial 50% scholarship, and the other 3 pay full price. The average amount of debt for the matriculating class of 2010 is $140,000.

Of course they are. They're also averaging in their MD/PhD students.

 

[RogueUnicorn]

Of course they are. They're also averaging in their MD/PhD students.

did not know that. wow. life just got that much bleaker.

 

[DrYoda]

You also have to consider that the "average debt" they quote is often for the graduating class's debt. The entering class is going to start at a rate 4 years of tuition increases higher.

 

[MilkmanAl]

As noted, there are a bunch of 0's factored into the equation. The scholarship people, the MD/PhD's, and the people whose parents pay off their tuition. Median indebtedness would be a much more useful number, and median indebedness of students who took out loans would be better still. Unfortunately, schools don't really want you to know you're going to be $200k in the hole before even earning a paycheck, so those will likely never be published figures.

 

[7starmantis]

what do you think. they give out money.

How does one go about getting their hands on some of this money?

 

[anfleisch]

I still don't quite see it though. Say the adjusted tuition and expenses was 60k instead of currently 67k, the 113k debt is still less than half of that total. If 20 people of a 120 person class get away with zero debt (MDPHD, parents, scholarship), and another 20 get away with half (scholarship, parents), the average debt would still be over $180,000. As many people would have to go for free as pay full price with loans to get to $120,000.

AKA: still seems like some legitimate awards have to be given out unless they just make up the numbers.

 

[JJMrK]

I wonder if the schools are averaging the students who receive full-ride scholarships. A medical school charges $200,000, which includes tuition and living expenses. Five students matriculate for the 2010 class. One receives a full-ride, another a partial 50% scholarship, and the other 3 pay full price. The average amount of debt for the matriculating class of 2010 is $140,000.

Some of the schools I've been to do not factor in people who have not taken any loans. Some do.

 

[JonBonesJones]

Some schools give everyone grants. I have a sibling in medical school, and based on your parent's income tax level, the school either gives 5k/yr or 12k/yr. Although people from super wealthy families might be excluded from this...I'll edit this later if I find out.