Forty million dollars equates to $100,000 of debt per student. Not all of this debt is held by students and not all of it is from tuition, experts say. “It also includes debt that their parents have taken on for their education,” said Mark Huelsman, the associate director of policy and research at Demos, a think tank focused on racial and economic justice.
The federal government caps the annual amount of federal money undergraduate students can borrow at $12,500. That equates to $50,000 for a four-year degree.
But many colleges, Morehouse included, charge an annual tuition greater than $12,500. Students who don’t receive enough financial aid at these colleges often must take out additional debt in their parents’ name. “Usually, the students are on the hook for paying it off,” Huelsman said.