Student loan recipients who receive degrees from private law, dental, and medical schools typically graduate with more than $70,000 in cumulative student loan debt, according to a new study conducted by NASFAA's Graduate and Professional Issues Committee and sponsored by Access Group, Inc. and Peterson's, a part of the Thomson Corporation.
The study, the 2003 Survey of Graduate Aid Policies, Practices, and Procedures (SOGAPPP), shows that, on average, student loan borrowers who received degrees in academic year 2002-2003 from dental school programs at private, non-profit colleges and universities had cumulative student loan debt of $144,474. At private medical schools the average cumulative debt was $107,215, and at law schools the average amount borrowed was $77,183. At public dental, medical, and law schools average indebtedness was $94,788, $94,925, and $54,025, respectively
These debt figures include total principal amounts borrowed from federal and non-federal student loans received for undergraduate and professional school education. They do not include accrued interest from these loans.
While debt from these professional schools is substantial, it should be noted that graduates from law and health professions programs represent a small share of the total number of borrowers who received degrees from graduate and professional schools. Roughly two thirds of the students received master's degrees in arts, sciences, education, and business administration programs. Among MBA recipients, the average cumulative debt for loan recipients who attended private business schools was $40,417, and $30,630 for those at public business schools. For other master's degree recipients, average debt was $28,502 at private institutions and $24,809 at public colleges.
These results bring added attention to the possible effects of large loan balances on borrowers' career choices after completing studies.
"This survey tells us very clearly that our most educated students are entering the work force with debt loads that will require years of sacrifice to meet debt servicing goals," said Judith Cramer, director of financial aid for the Virginia Commonwealth University School of Medicine and chair of NASFAA's Graduate and Professional Issues Committee. "This trend towards greater costs and greater debt could limit access to graduate and professional education, reversing years of success at the undergraduate level. While the solution to this problem is multi-faceted, it most certainly includes bringing loan limits current with the present state of educational costs."
The 2003 SOGAPPP survey instrument was sent to 1,468 graduate and professional school programs at colleges and universities throughout the United States in September 2003. Roughly 34% of these institutions participated in the survey project.
"NASFAA and the Graduate and Professional Issues Committee members are thankful to all respondents for taking the time to contribute to the survey," Cramer said. "We are certain that the results will give us a platform from which we can provide documentation to support our issues during reauthorization of the Higher Education Act, improve our range of services to students, and identify our own professional development needs."
The full results of the SOGAPPP will be released in July at the 2004 NASFAA National Conference in Minneapolis, MN. Funding for the 2003 SOGAPPP was provided by Access Group, Inc., with additional support provided by Peterson's, a part of the Thomson Corporation.
By Kenneth E. Redd
NASFAA Director of Research and Policy Analysis
Posted March 1, 2004 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2004. Redistribution to non-NASFAA institutions is prohibited
Please submit Web Site questions or comments to web@nasfaa.org
