50 Colleges with the Largest Parental Loans to Pay for Tuition
Nyu Student Loan Debt
To send their children to college, parents are borrowing more than ever. With an average loan of $16,305—two to three times the maximum amount that traditional students are allowed to borrow in a single school year—one out of every four dollars in federal loans given out for undergraduate education went to people paying for a kid’s or grandkid’s studies through the federal Parent PLUS loan program last year.
The quantity of these parent loans can quickly add up over four or more years of education. The median amount that parents borrow while their child is in school exceeds the maximum $27,000 that typical undergraduates are authorized to borrow, according to an exclusive This website study of federal statistics on PLUS loans. The average loan at the 50 schools selected by this website as the most popular among parents starts at nearly double that amount: $50,190. And half of the parents at the school where they borrow the most take out loans of $84,000 or more.
How did the numbers for parents become so large in comparison to their children? Parents can borrow up to the full cost of attendance each year (including housing and board, fees, books, and travel) less any financial aid the student receives, unlike undergraduates who have minimal annual loan caps. When you consider that the average four-year public institution cost $38,640 last year, including tuition, fees, housing and board, and the average private college or university cost $50,770, it adds up quickly.
Private schools account for 46 of the 50 academic institutions mentioned on the list of colleges where parents borrow the most. Only Citadel Military College of South Carolina is a public college on the list; the other three are for-profit institutions.
Families with a student interested in the arts should take note of the following: Eight of the top 50 universities are art schools, with six of them ranking among the top ten most costly schools in terms of PLUS borrowing, led by Brooklyn’s Pratt Institute and Ringling College of Art and Design. This is a condensed version of the information.