Grads facing debt before they enter the workforce

08.16.09
By James Conroy

Many college students are saddled with credit card and other debt when they finally reach graduation, but a new report finds that those who attended public colleges had less debt and say the amount rose less than their private school counterparts over the last five years.

According to figures from the College Board, graduates at public institutions for the 2007-2008 school year had a median debt level of $17,700 - a 4 percent increase over the last five years. Meanwhile, grads at private colleges had a median level of $22,375 - a 5 percent increase.

But while the increase has been relatively minor over the last five years, the report found that 10 percent of all graduates had borrowed $40,000 or more. Patricia Steele, an analyst at the College Board, said this can be problematic for many people entering the workforce.

"There is reason to be concerned about those who borrow far more than the average amount," she said. "Students who complete a degree with excessive debt face burdensome repayment obligations."

Credit card debt is also a growing problem for many college students. A recent report from Sallie Mae found that 84 percent of students had at least once credit card while only 17 percent said they pay off their balance every month.

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Students are facing mounting debt before the even enter the workforce