Chart of the Day: Debt to Degree Ratio by College Type
Yesterday a lot of people had “whoa” reaction to this chart that Daniel Indivigilo published on The Atlantic that demonstrates skyrocketing student loan debt in the last few years. It does have a lot to do with rising tuition and an increase in the number of students attending higher education overall, but it also has a great deal to do with a booming industry—the for-profit college sector. The great folks at Education Sector, in a report called “Debt to Degree: A New Way of Measuring College Success” [PDF], calculated the total amount of money borrowed by students divided by the total number of degrees a school hands out, or the “debt-to-degree ratio.” Then they broke it out by institution type. As you can see, this ratio is about twice that of private, nonprofit schools and even more than that for public nonprofit schools. This may help at least partially explain skyrocketing student loan debt. And it’s worth reading Ed Sector’s report in full.