The Status of College Dropouts: Struggling With Debt and No Degree

Career College Central Summary:

  • With students of all backgrounds unable to afford the rising cost of college on their own, the government is eager to assist by loaning them tens of thousands of dollars in order to pursue their degree.
  • The problem? Many of these students don’t graduate college, and when they drop out they are often burdened with debt that could be difficult for them to repay.
  • Less than half of college students graduate within four years, with about a quarter of first-time degree seekers not finishing their degree within six years.
  • Not measured in these graduation rates are part-time students, transfers, and adult students, who make up a large chunk of the student population and who also often take out loans to help with tuition costs.
  • Ironically one of the contributing factors to dropping out is debt.
  • While one study found that a moderate amount of debt can actually help a student complete a degree, too much causes them to drop out.
  • And apparently the threshold of too much debt is higher for women than for men, which is why men are more likely to drop out of college.

    • "While college debt was associated with higher rates of graduation, there came a point when adding more debt no longer increased the probability of graduation.
    • For men, debt started having diminishing returns on the probability of graduation at a lower level ($12,711) than for women ($14,682)."

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