R.I. student loan debt among highest in country

PROVIDENCE – Students graduating from colleges in the Ocean State are leaving with high student debt rates, an average of $31,561, the fourth highest nationally.

New Hampshire came in first with $32,795, according to the student debt report released Thursday by The
Institute for College Access and Success. The nonprofit examined cumulative student debt from Class of 2013 graduates of public and nonprofit four-year colleges.

Second place went to Delaware with $32,571 and third place, Pennsylvania, with $32,528.

Highest debt states were concentrated in the Northeast and Midwest, the report said, noting lower debt states were in the South and West.

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New Mexico had the least amount of student debt at $18,656, followed by California with $20,340.

State averages for debt at graduation ranged from $18,650 to $32,800, with the likelihood of new graduates having debt ranging from 43 to 76 percent. In Rhode Island, that rate is 69 percent.

The report found that approximately seven out of 10 college graduates, or 69 percent, had student loan debt, owing an average of $28,400, an increase of 2 percent compared with 2012 data.

The report also said about one-fifth, or 19 percent, of the Class of 2013’s debt was comprised of private loans, which can be more expensive than federal loans.

“A college degree is still the best path to a job and decent pay, and while loans are increasingly needed to get through school, graduating with burdensome debt is not a foregone conclusion,” Lauren Asher, TICAS president, said in a statement.
“Where you go to college matters, and the kind of loans you have matter, too. Federal student loans come with crucial consumer protections like income-based repayment plans, while private loans offer little or no relief if you hit a rough patch.”

Noting the disparity in state results, Debbie Cochrane, research director at TICAS and coauthor of the report, stated, “Graduates from New Hampshire colleges are almost twice as likely as Nevada graduates to leave school with student loan debt, and they owe almost twice as much as graduates from New Mexico colleges. The importance of state policy and investment cannot be overstated when it comes to student debt levels.”

The report calls for better debt data reporting by colleges, as this is something they are not required to do. The report’s policy recommendations included reducing students’ need to borrow by containing college net costs, helping keep loan payments manageable by simplifying and raising awareness of income-driven repayment plans, helping students and families make informed choices about college enrollment and financing, and reducing private loan borrowing.

Read the report here.

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