According to the most recent Student Loan Report data, Michigan Technological University boasts the second lowest student loan default rate for public higher education schools in Michigan. Michigan Tech’s student borrowers are defaulting at a rate of just over 2 percent. The University of Michigan-Ann Arbor has the lowest default rate. Both compare very favorably with the national average which sits at 11.3 percent.
No End to the Student Loan Default Problem
Although default rates across the country have been edging down in recent years, more than 40 percent of student loan borrowers are not making payments on more than $200 billion owed. As of the end of 2016, the total outstanding student debt is nearly $1.3 trillion. The default rate has more than doubled in the past decade at the same time that student borrowing has mushroomed. Increasing tuition and fees have led to an increase in student borrowing. On average students are now leaving college with an average of $30,000 of student loan debt. They are being greeted by a tight job market offering lower paying jobs.
MI Tech Grads Earn More
All of this makes the low default rate at schools like Michigan Tech all the more impressive. The Student Loan Report places Michigan Tech among the top 10 percent of schools nationwide. Generally, loan default rates are an indication of how well a school is helping its students to afford the costs of college without a heavy reliance on loans. It is also an indication of future earnings and career potential. Although average student loan indebtedness is high at just under $35,000, Michigan Tech graduates place well in high-demand, high wage jobs in engineering and related fields.
In a study by SmartAsset, a digital financial analysis firm, Michigan Tech ranked second in the state, behind the University of Michigan, in the value of its education. Comparing the total cost of a college education to the average starting salaries of the school’s graduates, the study awarded Michigan Tech with a score of 82.3. No other school in Michigan earned a score higher than 70.Michigan Tech graduates start out with an average salary of $62,000 after paying total education costs of about $105,000 over four years.
Image Copyright Jason Mracchina.