Many students owe more than $100,000 when they graduate. One
third of students who graduated with a bachelor’s degree did not
have any educational debt. The average debt level of bachelor’s
degree recipients who borrowed for college is $20,000—about the
price of a modest automobile. Moreover, the gap between the debt
levels for students at public versus independent institutions is
not very large: $17,700 versus $22,380, respectively. Students
who attend for-profit colleges (approximately 11 percent of all
students) account for nearly half of all defaults. Median debt
for students at for-profit institutions is much higher, at
$32,650. Only wealthy families can afford to send their children
to independent colleges. Independent colleges enroll students of
all financial backgrounds and at about the same percentages as
public institutions for low- and middle-income students. It is
very difficult to receive financial aid at independent colleges.
A larger percentage of students at independent colleges receive
financ