Colleges Flush With Cash Saddle Poorest Students With Debt - ProPublica

Colleges Flush With Cash Saddle Poorest Students With Debt - ProPublica
by Annie Waldman and Sisi Wei

New York University is among the country’s wealthiest schools. Backed by its $3.5 billionendowment, the school has built campuses in Abu Dhabi and Shanghai, invested billionsin SoHo real estate, and given its star faculty loans to buy summer homes.

But the university does less than many other schools when it comes to one thing: helping its poor students.

Debt By Degrees

Use our interactive database to search new federal data on almost 7,000 schools in the U.S. to see how well they support their poorest students financially. Explore the app.

(Sisi Wei and Annie Waldman, ProPublica)

A ProPublica analysis based on new data from the U.S. Department of Education shows that students from low-income families graduate from NYU saddled with huge federal loans. The school’s Pell Grant recipients – students from families that make less than $30,000 a year – owe an average of $23,250 in federal loans after graduation.

That’s more federal loan debt than low-income students take on at for-profit giant University of Phoenix, though NYU graduates have higher earnings and default less on their debt.

NYU is not the only university with a billion-dollar endowment to leave its poorest students with heavy debt loads. More than a quarter of the nation’s 60 wealthiest universities leave their low-income students owing an average of more than $20,000 in federal loans.

At the University of Southern California, which has a $4.6 billion endowment, low-income students graduate with slightly more debt than NYU’s graduates: $23,375. At Boston University ($1.5 billion endowment), it’s $27,000, and at Wake Forest University ($1.1 billion endowment) low-income students graduate with $29,150 in debt.

This new data on student debt is drawn from numbers that the Obama administration assembled as part of a planned effort to create grades for every college. In the face of fierce lobbying from universities, the administration backed away, but has made much of the data public on a new website called College Scorecard. ProPublica has used that material to create Debt By Degrees, an interactive database that allows you to search information for almost 7,000 schools. The data provides an unprecedented level of detail on the financial burden that the poorest college students face, showing for the first time how much federal debt poor students take on compared to their wealthier peers, and how well these students are able to repay their loans. The database also shows how much graduates earn on average after leaving school.

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