Introducing a new income-driven repayment plan that may have the potential to lower student loan debt bills. According to a recent analysis conducted by the HEA Group, approximately one-third of graduate school programs leave students with more debt than they initially borrowed, even after five years post-graduation. While the cost of a bachelor’s degree has been receiving increased attention, graduate programs have been overlooked. These professional degrees, such as medical programs or MBAs, are intended to enhance work-focused skills and boost earnings. However, the study suggests that one-third of these grad schools fail to do so, leaving students with significant debt burdens.
Michael Itzkowitz, founder of HEA Group and a former director at the Department of Education’s College Scorecard, emphasizes the lack of accountability in graduate programs. Itzkowitz explains that many stories have emerged about students graduating with substantial debt and low earnings. Motivated by these concerns, HEA systematically examined 1,661 institutions and 6,371 programs to evaluate how graduates manage their loans after completing their degrees. The findings are alarming, as Itzkowitz states that graduates are unable to make payments sufficient enough to cover the minimum amount, resulting in higher loan balances than what was initially borrowed five years prior.
Among the analyzed institutions, 528 (or 32%) experience graduates with more debt after five years of graduation. The study reveals that for-profit and private non-profit institutions are the worst offenders. For example, Walden University, an online for-profit institution specializing in masters and PhD programs for fields like nursing and criminal justice, tops the list with students accumulating an additional $289 million in loan interest within five years after graduation. Walden psychology PhD graduates, for instance, earn around $72,000 annually but carry a debt of $175,000, which is two and a half times their income.
Consumer Financial Protection Bureau recommends that debt should ideally not exceed the income earned. However, many programs fail to meet this metric. Columbia University’s master’s degree in film and video, for instance, produces graduates who earn approximately $28,000 annually while carrying a debt of nearly $164,000.
This data from HEA provides valuable insights into the effectiveness of different programs in terms of salary prospects and debt management. Itzkowitz emphasizes the importance of providing students with a reasonable amount of debt that can be paid off over time. This new analysis sheds light on the issues surrounding graduate programs and calls for increased accountability and attention to the financial well-being of students.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
