College Admissions Directors on College Debt
by Daniel Luzer
Apparently America’s college admissions directors think there’s no need to worry about education debt. Just get used to it, America. According to a new survey conducted by Inside Higher Ed:
A plurality of college admissions directors in a new survey by Inside Higher Ed indicated that current average loan volume for undergraduates is reasonable — and 22 percent of all admissions directors and 28 percent of those at private colleges would be comfortable with the average student debt being even higher than it is now.
About 42 percent admissions directors think $20,000 to $30,000 of student loan debt “reasonable.” Almost 20 percent think $30,000 to $40,000 is appropriate. Only two percent of admissions directors surveyed think it’s reasonable to expect no debt upon graduation.
This cheery acceptance of such debt burdens is in direct contrast to studies conducted using actual financial experts. Back in March the Federal Reserve Bank of New York issued a report that indicated that,
Student loan debt is not just a concern for the young. Parents and the federal government shoulder a substantial part of the postsecondary education bill. Moreover, the student loan delinquency picture is not fully captured in the broad statistics since a significant proportion of borrowers and balances are not yet in the repayment cycle. The implications of this last fact for future changes in the student loan delinquency rate are a very important area of research.
This doesn’t mean student loans are a bad thing, necessarily, but it does indicate that they’re something that could quickly turn into a problem for students, parents, and taxpayers.
The new survey by Inside Higher Ed, however, seems to indicate that it’s probably not worth it to try and ask college administrators to monitor and address this problem. They’re not really concerned.