Introduction: The Project on Student Debt analyzes research from the National Postsecondary Student Aid Study showing that student debt continues to rise, even as entry-level jobs are harder to find. The average college senior in 2008 graduated with $23,200 in student debt. However, debt varies between states and regions; with the highest levels of debt in Northeast states, and the lowest levels in Western states. This report contains a ranking of states by amount of average student debt, and a list of high-debt public and private colleges.
An excerpt from the report: Student Debt and the Class of 2008 is our fourth annual report on the student loan debt of new college graduates. Our analysis of the most recent available data found that student debt continued to rise even as it got harder for recent graduates to find jobs, and that debt levels vary considerably from state to state and college to college.
Nationwide, average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, or about six percent per year. State averages for debt at graduation in 2008 ranged from highs near $30,000 to a low of $13,000. High-debt states are concentrated in the Northeast, while low-debt states are mostly in the West. At the college level, average debt varied even more, from $5,000 to $106,000. Col¬leges with higher tuition tend to have higher average debt, but there are many examples of high tuition and low average debt, and vice versa.
Meanwhile, employment prospects for young college graduates have soured along with the economy. The unemployment rate for college graduates aged 20-24 was a challenging 7.6% in the third quarter of 2008, the highest third quarter rate since 2002; by the third quarter of 2009 it had risen to 10.6%, the highest on record. 1 The majority of the class of 2008 fell into this age group in both years.
Read the full report here.