Iowa Student Debt Ranks Sixth In The Nation

student debtUSA Today looked at eight states in the U.S. that rank the highest for student debt.  Ranking from #8 to #1 are:  Vermont,  Ohio, Iowa, Connecticut, Rhode Island, Minnesota, Pennsylvania, New Hampshire.

“Staying in the Midwest, we move on to Iowa, home of the Hawkeyes and the Cyclones. Getting closer to your Big 10 or Big 12 favorites for a few years is going to cost you: Graduates from the state who have borrowed come out with an average of $28,753 in debt. The percentage of students who are in debt has gone up, too, with 72% of those who attend college in the corn belt state turning to the bank for help pay for their tuition.”      LINK

ProgressIowa.org

Research has shown that the impact of student debt on an individual’s purchasing power and lifetime wealth can be devastating:

An average student debt burden for a dual-headed household with bachelors’ degrees from 4-year universities ($53,000) leads to a lifetime wealth loss of nearly $208,000[2].

The more than $1 trillion in student loan debt will lead to a total lifetime wealth loss of $4 trillion for indebted households[2].

The average debt for graduates of the University of Iowa ($28,554 average debt), Iowa State University ($30,374 average debt), and the University of Northern Iowa ($23,575 average debt) is extremely high[3].

Student loan debt may reduce new vehicle spending by $6.4 billion annually, and home ownership is 36% higher among those who no longer have student loan debt[4].

Iowa spends more than 31% less now on higher education per full time enrolled student than was spent in the 2007-2008 school year, decreasing by more than $2,500 in real dollars[5].

As part of the launch of ‘Higher Ed Not Debt’ today, Progress Iowa will ask supporters of affordable higher education to tell their stories about how student debt has impacted their lives. Those stories will be shared with elected officials and other decision makers as part of the ongoing campaign.

To learn more about Progress Iowa’s ongoing efforts as part of ‘Higher Ed Not Debt’ visit http://www.progressiowa.org.

[1] USA Today: 8 states where student loan debt is out of control
http://www.usatoday.com/story/money/business/2013/10/06/student-debt-8-states/2927415/

[2] At What Cost? How Student Debt Reduces Lifetime Wealth
http://www.demos.org/what-cost-how-student-debt-reduces-lifetime-wealth

[3] Project on Student Debt: Iowa Institutions
http://projectonstudentdebt.org/state_by_state-view2013.php?area=IA

[4] Impact of Student Loan Debt on Homeownership Trends and Vehicle Purchasing
http://www.onewisconsinnow.org/files/OWIStudentLoanEconomicReport.pdf

[5] The Great Cost Shift Continues (New Report)
http://www.demos.org/publication/great-cost-shift-continues-state-higher-education-funding-after-recession

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