Minnesota college grads among most debt-saddled anywhere, study finds

Categories: Education
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Using data from the Institute for College Access and Success, the Washington Post's Wonkblog put together an interactive state-by-state map looking at which states produce college graduates with the highest average debt load.

With regard to the class of 2012 -- the most recent class for which data is available (the numbers are made available just once every four years, the Post reports) -- Minnesota graduates ranked as the fourth-most indebted of any state, with an average of $31,497 in debt.

See also:
MCAD grads have highest average debt load in state

The only states "ahead" of Minnesota are Delaware ($33,649), New Hampshire ($32,698), and Pennsylvania ($31,675). (Check out the full map here.)

That's not good, but it's not all bad either, Minnesota Office of Higher Education financial aid and borrowing researcher Tricia Grimes tells us.

"It's been true for quite a few years that a higher percentage [of Minnesota grads] borrow, and they borrow somewhat more than the national average. Our office is somewhat concerned about that," Grimes says. "But Minnesotans have a track record of successfully repaying their student loans. Our default rates on federal loans have rated in the bottom third of states for many years, so that's an indicator that most are successfully repaying."

"We think what this means is that current students are likely to have friends and family who used loans in the past and have been successful in repaying them, so they're more likely to borrow," Grimes continues.

Grimes cites Minnesota's relatively high median income and low unemployment rate as reasons why college students here have "reasonable expectations they will get a job and repay their loans."

Minnesota could slide down the list in future years too, as last year Gov. Mark Dayton and the legislature approved a 15 percent increase in state grants while holding tuition flat at state schools for the 2014-15 biennium, Grimes says.

"If more of the students get grants perhaps they won't have to borrow as much," she adds.

Of course, none of that means there aren't lots of Minnesota graduates struggling with debt. Grimes says the Office of Higher Ed is working with the Department of Commerce on "financial literacy efforts to make sure people understand they should be minimizing their debt to the extent they can."

(For more, click to page two.)


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20 comments
kurt124
kurt124 topcommenter

Lets see:  

1.) Liberal Democrat tenured profs. who don't even teach class, Grad students do!  Tenured Profs who do nothing making $200K/year plus.

2.)   Federal funded subsidized student loans racking up major debt. to pay the small Army of Profs and administrators, who are a bureaucracy of Democrats who keep the current bankrupt system by voting Democrat.   

Yes, you must get an education!

 

Jason A Lee
Jason A Lee

the economics of the state of MN are ass-backwards

Karel Schaap
Karel Schaap

They're not afraid to invest in their future!! Colleges should put more effort into helping graduates find solid jobs though. The degree doesn't get them the job. It's personality, positive attitude and presenting themselves that does. The degree is only a pre-requisite.

John Bunch
John Bunch

How to create a bubble: 1. Government says it will help students with federal student loans, 2. Universities hike their tuition to pay for their small armies of administrators and out of sheer greed and because they know that government will meet the new price hikes, 3. Government adds more fuel to the fire by putting more money in. Repeat to create the bubble in student debt.

NOLA Mn
NOLA Mn

A sad outcome. The students would be better off with mentors who excel at their work - but that requires guts and out of the box thinking. (this may not work in some vocations like surgery etc.) Elders who have gained experience and mastership over what they do have a lot to give - mostly free but pay could be in the form of respect and living Spartan and working towards + using+ fulfilling some god given attributes in oneself. Life and work just gets happier and less burdensome.

Truth_Teller_1
Truth_Teller_1 topcommenter

These kids are being ripped off.

Born into debt - the national debt is over $16 trillion.  Then they aquire debt for college, then debt to buy a car, then debt to buy a home - this is nothing more than debt slavery.  You wind up owning nothing - you're just renting it!

Then there's the rackets:  health care racket, banking racket, financialzation racket, stock market racket, insurance racket, and the education racket.

We're working on the old assumption that a college education will get you a decent job.   Not so anymore.   Outsourcing / temp agencies / off shoring - the greedy employers have figured out how to get their employees under their thumb.

Also computerization has enabled companies to have less educated people, plug data into software, that once was done by a more educated person.

The real unemployment rate is atleast 18%.

IMO the US of A is circling the drain.

Tim Stang
Tim Stang

college degrees are worthless.. use mine as a coaster

Cassidy Anderson
Cassidy Anderson

Ugh. I hate feeling like I made a terrible mistake by deciding to further my education. And BOY did I screw up. I decided to go to school for Recording engineering at a music college. I realized about 3/4 of the way through that there was no way I was going to get steady work and pay straight out of college(and not even for years after) and dropped out before incurring any more debt. Now any opportunities I did have at just jumping in and learning on my own(which I did end up doing) and being able to gain experience by interning is almost impossible because I can't afford my debt alongside my living expenses.

Kristine Chattin
Kristine Chattin

I'm 63,000 in debt, online classes are ridiculous in cost. That's what you get when you work and raise kids full time.

Briana Hulke Moore
Briana Hulke Moore

Let's build some more over the top apartments near campus! Rent now, pay later !

Truth_Teller_1
Truth_Teller_1 topcommenter

@kurt124 Don't forget Taj Mahal buildings and Sport Palaces.  It's their own little protected world.

kurt124
kurt124 topcommenter

......and they are all Democrats.....

carnivalminds
carnivalminds

How silly.
Are we supposed to feel sorry for you because wanted to run a studio? That's delusional.

I've written songs for 30 years and don't expect people to cry for me. Do you know what a unique situation it is to work in media for real? It's a trust fund or undeniable talent and networking or all of the above. You don't just take out loans and do Led Zeppelin 4, dood. You don't get to blame the school for your choices and lack of imagination.

If you were good enough we'd prolly know it. Just sayin'

Truth_Teller_1
Truth_Teller_1 topcommenter

@digitalprotocol  @Truth_Teller_1

What comes to my mind is trades and self-employment.  You can't outsource a trades person.   Similarly if you can find a niche, with low (or no) overhead, you may make it as self employed.

I believe the US can limp along for decades, growing worse and worse in terms of freedom and economic opportunities.  Our elected officials (note I didn't say leaders) will find more and more ways to confiscate income, print money, and get around the Constitution.

Additionally, laws like Obamacare will screw over doctors / medical industry so bad, that it won't be a desirable profession either.

The Fourth Turning is a nice concept (look it up) but I don't think it's going to happen this time.

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