Iowa was recently ranked ninth in a national survey, but Iowa college students would be much happier if it would have been ranked 50th.

At $29,370, Iowa ranked ninth in the nation for student indebtedness in a survey released by The Institute for College Access and Success. The survey, which looked at students who graduated in 2013, put in black and white what many students already understand — college is expensive, especially in Iowa.

“When I came here, I was actually stunned with how poorly Iowa ranked,” ISU President Steven Leath said in an interview in August.

Even though Iowa did rather poorly in the poll, things are better than they seem. Iowa is actually on a downhill slide when it comes to student debt. Iowa ranked second in the same study in 2005 and sixth in 2009.

“It’s gone from $31,000 to about $29,000,” Leath said in regard to average student debt for ISU graduates since he arrived at the university in 2012.

Regardless of the slow decrease, the large amount of debt accrued by students has graduates across the nation questioning whether or not their degree was worth it.

The second annual Gallup Purdue Index Report, which was published earlier this year, found that only 52 percent of graduates of public institutions across the nation “strongly agreed” that getting their degree was worth the expense. This number dropped to 47 percent for students who attended private institutions.

The same survey, which polled more than 30,000 graduates within the first six months after graduation, also found that high levels of student debt could hinder graduates from pursuing other life goals.

Graduates with more than $25,000 in debt were 16 percent more likely to delay buying a home.

It was also found that they were more likely to delay marriage, put off starting a business and stay in their parent’s home for a longer period of time on average.

Roberta Johnson, director of the Office of Student Financial Aid, said that part of the reason student debt in Iowa is so high is because of the lack of a state grant program that would subsidize student tuition costs for those in need. Many other states, such as Minnesota and Nebraska, have a state grant program.

In fiscal year 2016, Minnesota is projected to give out almost $180 million in state grant funds to resident students who attend one of the state’s public or private institutions.

The amount of the award, and to whom the award is given, is based entirely on need. Nebraska has a similar program, offering nearly $16.5 million in state grant funds. The average grant given to each student is about $1,000.

“We lose money on every Iowa kid,” Leath said, adding that the university just about breaks even with non-resident students.

Regardless of the fact that in-state tuition had been frozen for the past three years, the responsibility to keep debt at a minimum isn’t just on the university.

“Students and their parents should start saving from the get-go,” Johnson said, adding that every student should know how much money they’ve borrowed and will borrow once they get to college.

Johnson also said many students follow what they’ve seen when it comes to money management.

“We’re all kind of a product of where we grew up,” she said in regard to how individuals learn to spend money.

Although many students understand how to budget money, Johnson said others can learn how to break old habits they learned from their parents or guardians.

Within the past few years, HD FS 283, a course that focuses on personal and family finance, was added to Iowa State’s course list.

Johnson said the course is a great tool to teach students proper ways to manage their finances. She said Student Government has even pushed to add it to the required course list in past years. 

“You have to start somewhere,” Johnson said in regard to financial literacy education.

Leath shares similar concerns about financial education.

“I’m always surprised when students don’t understand the difference between a grant and a loan,” he said.

With all of the negatives surrounding student debt in Iowa, some positives exist. Per the most recent Iowa Board of Regents Student Financial Aid report, the amount of students who graduate with debt at Iowa State is shrinking. During the 2012-13 school year, the percent of students who graduated without debt from Iowa State was 35.5 percent. The 2013-14 school year saw an increase — 35.8 percent of students who graduated didn’t have debt.

Some students and their parents may even be gaining when using loans, allowing them to graduate with less debt. Johnson said some families have decided to take out loans regardless of need because pulling from other long-term investment funds, which may be earning up to a 7-percent interest rate, to pay for college is detrimental compared with taking out a 4-percent interest rate loan.

The high level of debt is an issue, but Iowa’s fall from second in the nation to ninth in student indebtedness is an improvement. Regardless, student debt will always be a problem.

“There is no one silver bullet,” Johnson said.

Strong financial planning and increased state support may be among some of the best ways to prevent debt, she added.

“Money is the root of all of it,” Johnson said.