The Higher the Price Tag, The Higher the Debt

by Nathan Nodolski

People think that colleges with higher price tags result in more debt after graduation. Consequently many high prestige schools miss out on many applications from students because they believe it will not be worth it. According to a US News and World Report college survey, the high priced prestigious schools with large endowments often graduate students with LESS college debt than less prestigious, lower price tag schools.

Students graduating from Harvard and Yale on average owed about a quarter of the sticker price. So if tuition alone would be $200,000 after 4 years, the average student who graduated from there only owed about $50,000; which is less than the less prestigious schools. With the ivy league name on your resume as well, it may not be that difficult to pay that back.

According the survey a Princeton graduate’s average debt after 4 years is $5,096, while a student from the less prestigious Massachusetts Wheelock College has around $50,000 debt after graduation. All Ivy League schools however have endowments of over $1 billion. The more money – the more prestige. 59% of Harvard’s annual endowment payments goes to student financial aid.

So if you are smart enough to get into those high prestige colleges, go for it. Their billion dollar endowment will help you end up in less debt and with more success after college.

 

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