The Best Colleges In America .. And The Amount Of Debt They Leave Students In (PHOTOS)

Three days before U.S. News and World Report's annual rankings of America's best colleges were released, the Education Department posted a report (PDF) in stark contrast -- a database listing the debt loads and repayment figures of thousands of schools across the nation.

Unsurprisingly, for-profit colleges emerged as the foremost culprits of massive student debt: The University of Phoenix's total student debt load is almost $5 billion; Nova Southeastern University barely trails it with $1.1 billion. But then there's New York University in fourth: the school's graduates combined are $659 million in debt; the average student leaves college $28,649 in the red (as Gawker points out, NYU's total debt is more than the GDP of 12 countries).

Columbia University professor (and Huffington Post blogger) Justin Snider further distills the government's data in a recent post:

Predictably, few public institutions populate the list of schools that graduate students knee-deep in debt. (Exceptions include the University of North Dakota, Kentucky State University and the Maine Maritime Academy, where more than two-thirds of graduates left school with an average of about $35,000 in debt.) Private, nonprofit schools as well as for-profit schools dominate the list of students graduating with crushing debt.

But there is some good news, too. A handful of institutions do an enviable job of getting their graduates out the door with little or no debt, and it turns out there's a fairly strong correlation between highly ranked schools and schools whose graduates owe almost nothing. But a confounding factor, of course, is that more affluent students tend to attend these institutions in the first place, so it's little wonder they can graduate almost debt-free.

In the below list, we looked at the average debt loads of students coming from U.S. News' top national universities and liberal arts colleges and re-ranked them according to the amount of individual federal debt a student faces when entering repayment. Also listed is the total debt balance of the school's students -- graduate and undergraduate, where applicable -- and the school's U.S. News ranking.

What do you think of the rejiggered list? Are the best schools worth the cost? Join the discussion in the comments section.

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University of Pennsylvania

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Average Individual Debt Upon Entering Repayment: $32,119 Total Student Debt: $355,810,150 U.S. News Ranking, National Universities: 5

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Average Individual Debt Upon Entering Repayment: $32,119

Total Student Debt: $355,810,150

U.S. News Ranking, National Universities: 5

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Comments

[BillBadger]

07:53 PM on 09/01/2010

This is almost irrelevent--what does the amount of debt matter out of context with the tuition and houseing and all other fees, and the number of years to graduate?

[Caesar T Storlazzi]

09:03 AM on 08/30/2010

The figures stated in this Huffington Post article regarding cumulative stated debt levels are inaccurate and misleading. Graduates from Yale College in 2009 had a median cumulative debt level of $10,125, not $27,587 as reported above. The authors erred in calculating their ratings by failing to take into account that some schools, like Yale and the University of Pennsylvania, report financial debt information into the National Student Loan Data System using a single aggregated debt figure for students in ALL units of the school - that is students in the undergraduate college, combined with students in the law school, the medical school, and so forth. Other schools, such as Harvard and Princeton, separate out undergraduate debt figures from graduate and professional school units - units that typically have significantly higher debt levels at graduation. As my colleague from the University of Pennsylvania has already pointed out, a fair and accurate ranking would have compared "apples" to "apples." Caesar T. Storlazzi, University Director of Student Financial Services, Yale University.

[TheWorldBlowsUpTommorow]

01:00 PM on 09/19/2010

Thanks for the update.

[PeterMelzer]

05:44 PM on 08/25/2010

I finally got around to skim Dept. of Education data more thoroughly and added the median graduate debt in federal loans to my list (http://brainmindinst.blogspot.com/2010/07/value-of-education-economically.html). The values range between $12,000.- (Brigham Young) and 25,000.- (UVa). In comparison, graduates from some renowned private not-for-profit universities and colleges may owe less than $10,000.-, e.g. Williams College, Harvard University, and Princeton University, whereas graduates from others owe more than $30,000.-, e.g. University of Pennsylvania, Vanderbilt University, and Emory University). The debt may be low for some private not-for-profit institutions, because their students qualify less for federal loans and may receive more institutional financial aid. A commenter kindly pointed out the latter in reply to my earlier post. By contrast, greater debt means less institutional aid and higher cost.

[Michelle Brown-Nevers]

12:28 PM on 08/24/2010

This information is misleading to parents, current and prospective undergraduate students and alumni. Hopefully, my comments will provide clarity for your readers. The average student debt upon graduation for Penn undergraduate students was $17,700 in 2009. Also, Penn has committed $150 million for undergraduate financial aid this year—an increase of nearly 80 percent in the last six years. We have also eliminated loans as part of our financial aid packages for typical undergraduate students. As the assoc. vp for student registration and financial services at Penn my office monitors these figures provided by the federal government. The numbers reported in your story for Penn include both undergraduate and graduate and professional student debt while the numbers for other colleges only include loans taken by undergraduates. Any ranking that attempts to educate consumers on how to make the best financial choice for college should compare consistent data—in other words, you should compare apples to apples.

[frank day]

11:12 PM on 08/23/2010

Most degrees do little to prepare students for an actual job. As the cost of a degree has skyrocketed much faster than inflation, the number of good paying jobs for grads has fallen. Most available jobs are in the service industry. We're left with ridiculous 'credential inflation' where even the most menial job may soon require a BS degree. I've advised my son to get his associate's degree at a community college and his bachelor's at the nearby state college. Save the big bucks for a graduate degree from a "prestigious" school. The trick is to get that undergrad degree as inexpensively as possible.

[alexandracabot]

01:04 PM on 08/23/2010

I'm not sure if I believe these lists. I was accepted to both Harvard and Yale, and my financial aid awards were virtually identical (Harvard actually would have cost me $100/year more). My friends have had the same experience. So how is it that Yale students go $20,000 more into debt than Harvard's? Neither university factors any loans into its financial aid awards, and both meet 100% of student need, so I fail to see how Yale students could incur so much more debt than Harvard's.

[Gneirre]

09:09 AM on 08/23/2010

Only in America where learning is a luxury and not an obligation and responsibility. *sigh*

[Snapper Snap]

12:59 AM on 08/28/2010

You think that higher education is a luxury only in America?

Just about anyone can get loans and go to school for a degree in America. But they have to pay for it themselves, and libs hate that.

[Zutroy]

01:12 AM on 08/28/2010

Is it bad that we don't like someone having to take on massive debt to get a good education? Yes, 'Libs' hate that when almost everywhere else in the world, people don't have to burden themselves with debt to get a good education.

Unsurprisingly, we rank lower than most of the wealthy world in education. You can bet 'libs' hate that too, regardless of how little the right cares about our plummeting status.

[PeterMelzer]

01:08 PM on 08/22/2010

Something larger than the cost of college education is looming in this debate. The issue appears to be who belongs into the American middle class. The confusion may stem from the fact that just about everybody wants to be in it.

Alas, hard economical figures tell us otherwise. The median HOUSEHOLD income in Tennessee stands at roughly $50,000.- a year (many of those households consist of more than one bread earner). The current administration considers everyone with an annual income up to $250,000.- middle class. Tell me what financial issues a family with $50,000.- annually has in common with families that have got five times as much at their disposal. These are two entirely different worlds thrown in one pot. Yet, governments led by Ivy League presidents seem unable to note the difference.

[farmilyman]

05:05 AM on 08/21/2010

Not as bad as I thought is was.

[ChuckDarwin]

04:20 AM on 08/21/2010

Something seems amiss with the "rejiggered" rankings, because Harvard's financial aid is so good it has replaced all loans with grants, meaning that nobody should have to graduate with loan debt. Since Harvard was No. 1 pre-rejiggering, it should top the rejiggered list, too. Just sayin'.

[Black Guy at Cornell]

10:34 AM on 08/22/2010

Cornell does the same thing. Although it wasn't on the "re-jiggered" list...regardless, all of the Ivies except Dartmouth have striven to replace loans with grants.

[Anthony Rek LeCounte]

06:07 PM on 08/23/2010

There's also the fact that Harvard and Yale have had nearly identical financial aid packages since the class of 2012 matriculated (two years ago). Both schools eliminated loans as part of financial aid. However, as a Yalie, I know that Yale allows you to take out loans to cover what the University calls the "family contribution". Still, I don't see how it would rack up as much average debt as proclaimed in this ranking (let alone how that debt would be significantly greater than that of a Harvard student).

[GeoLee]

01:21 AM on 08/21/2010

Those debts are not that high considering the costs to go there, but then the majority of people accepted are upper income and above at most, anyway. Heck, Harvard calls a family income of $850,000 "middle class." according to an article I read a few months ago. To them, it probably is middle class and because of endowments is able to help the really normal middle and lower class students who are accepted (a low %) a lot of scholarship help.

[Anthony Rek LeCounte]

06:11 PM on 08/23/2010

Harvard actually only provides financial aid for families with income up to $180K. Yale's nearly identical aid provides for income up to $200K. At both schools, families on aid supposedly pay no more than 10% of their annual income, with loans not being part of the aid package. The percentage of people on aid at each school (H and Y) is more than half (not including those who get full or considerable aid from outside sources). A significant portion of the student body at both (myself included) work during the school year and over the summer.

[Mondayboy]

01:19 AM on 08/21/2010

Where are the numbers for the online Universities? The Univ of Phoenix and their like?

[Neptune121]

11:33 PM on 08/20/2010

Some of these results are skewed.

Schools that offer graduate programs (like a medical school) will have students who are in much deeper debt than the average undergraduate student. For example, Yale LAW and Yale Medical students will graduate with considerable amounts of debt, but this doesn't really matter because they have a law or medical degree from Yale.

The actual average debt of a Yale undergraduate is closer to $10,000, and is even lower for more recent graduates. New policies were instituted in 2008 that vastly improved financial aid.

I believe the data released includes debt for students of many graduation years, which would mean that the data does not accurately reflect newer financial aid policies that are being implemented at many schools.

[corwin]

09:09 AM on 08/22/2010

I'd like to point out,it's not solely(or mainly) the degree,as it is skills for which people will pay me. Med school is essentially trade school . Let's say my income 2 years post fellowship was 120 K more than before.graduating In gender studies ,say,one can hope Mickey Dees hiring. There is a book (College;the Five Year PArty I'd recommend to current studentd or parents therof

[panamajohnny]

11:25 PM on 08/20/2010

I just happened upon the Western Connecticut State University campus in Danbury and was astounded at the half mile 4-lane highway going uphill to the top of a 435-acre mountaintop and compounds of new architect-designed buildings spread out so far that cars are necessary to get from one to another. Is this kind of waste what students have to pay for?

[ConservativeWorld]

11:08 PM on 08/20/2010

If that is the average debt for an undergraduate degree at these schools, I think that people are crying a lot about nothing. I would argue that this is not that bad of a deal when you do a Net Present Value calculation on the incremental earnings these people will make.

[panamajohnny]

11:27 PM on 08/20/2010

Well, do a calculation on how two of my twin college-grad nieces can pay back their loans at 32 working in clerical jobs, which is all they can find.