Less than a month after the release of a report on student loan debt by school, LendEDU has looked further into the situation, particularly pertaining to private student loan data, finding that students who attend private schools leave with an average of $10,433 more in private student loan debt when compared to their peers who attend public schools.
Released in August, the original report, “Student Loan Debt By State By School Report 2016,” examined financial aid and student loan data for over 1,300 colleges throughout the United States in an effort to make the $1.3 trillion student loan crisis more clear.
Researchers calculated the typical amount of student loan debt carried by students at each college and university across the country. This amount was also calculated on a state by state basis.
Since the release of that report, LendEDU has had numerous questions about the situation, particularly pertaining to private student loan data. While the report already lists the average amount of private student loan debt per borrower at each college and university, researchers have delved deeper.
Recent findings show the average amount of private student loan debt per borrower to be $28,080.43. However, when this was looked into further, the amount of private student loan debt held by students at private schools was found to be much higher at $34,528.00 than it is for students at public schools, which was found to be $24,084.88. This accounts for a difference of $10,443.
The study also discovered that, on average, 10% of graduates used private student loans. The top five schools found to give students the most private student loan debt at graduation included Franklin College, Alvernia University, The New School for Public Engagement, Quinnipiac University, and Delaware Valley University. DVU came in first place, with the average amount of private debt in the class of 2015 found to be $72,493. In all, 40% of the class of 2015 at that school graduated with private debt.
Calculations for the study only include those students who borrowed using private student loans. Any federal student loans used by the individuals were not taken into account.
The most recent Peterson’s financial aid data was used for these calculations and rankings. Peterson’s released the data for the Class of 2015 in the beginning of August 2016. LendEDU is the first organization to make use of the information to analyze the data for the Class of 2015.
LendEDU seeks to increase transparency within the student loan market. This includes releasing accurate data for students and families, providing resources and tools in an effort to promote financial literacy, and finding students and their families the lowest interest rate possible.
The organization would like to see the data provided used by families to help make financially responsible decisions pertaining to student loan debt. They add that if used responsibly, private student loans are actually a powerful tool for the use of students and their families.
LendEDU is paid for marketing services by numerous private student loan companies. In addition, Nate Matherson, the co-founder and CEO of the organization, is still paying off around $30,000 in private student loan debt.