Worst Colleges for Student Debt: Schools Where Graduates Struggle Most

The national median student debt at graduation is $22,760. The national median 10-year earnings across 1,665 schools is $56,005. That produces a national median debt-to-earnings ratio of 0.44 - graduates owe the equivalent of about five months of their annual income.

At the worst-performing schools in the dataset, the ratio flips: graduates owe more than they earn in an entire year. That is not a nuanced financial planning challenge. It is a structural trap.

Here is the data.

How to Read the Debt-to-Earnings Ratio

Formula: Median debt at graduation / median earnings (measured approximately 1-4 years post-enrollment)

Benchmark: - Below 0.5: Strong - debt is well below half of annual earnings - 0.5-0.75: Acceptable - manageable on standard repayment plan - 0.75-1.0: High risk - requires careful repayment planning - Above 1.0: Severe - graduates owe more than one year's earnings

Financial advisors and the Department of Education both use the 1.0 threshold as a key warning indicator. The Gainful Employment regulations use debt-to-earnings as a primary metric for evaluating whether programs produce sufficient financial value.

The Worst-Performing Schools

The following schools have the highest debt-to-earnings ratios in the College Scorecard dataset. All figures are from the most recent data release.

Source: U.S. Department of Education College Scorecard, most recent data release. Earnings measured at approximately 2-4 years post-enrollment.

What the Pattern Shows

For-Profit Schools Dominate the Bottom

Five of the eight worst-ratio institutions in the dataset are for-profit schools. Eagle Gate College (two campuses) and Provo College are Utah-based for-profits with high debt loads and median earnings that fall below $40,000 - a combination that makes standard repayment difficult from day one.

Strayer University operates across multiple states under the same model. The debt figures are consistent across campuses ($40,621 median) while the earnings hover just above that threshold - a ratio that technically clears 1.0 but leaves no margin.

For-profit schools are not categorically bad. Some produce strong outcomes in specific healthcare and IT programs. But the base rate of poor debt outcomes is significantly higher in the for-profit sector than in public or nonprofit schools - making scrutiny more important, not less.

Some Nonprofits Also Struggle

Allen University, Morris College, and Benedict College are HBCUs (Historically Black Colleges and Universities) in South Carolina. Their appearance at the bottom of the debt-to-earnings table reflects a different dynamic than the for-profit schools: these institutions serve students with limited financial resources, provide access to students who may not attend college otherwise, and have smaller endowments that limit institutional grant aid.

The data shows their graduates struggle with debt. It does not tell you everything about the value of attending. For students who would not otherwise access higher education, an HBCU with a 1.0 debt-to-earnings ratio may still represent positive expected value compared to not attending at all. For students who have alternatives with better debt outcomes, the ratio matters.

The Arts Are a Structural Problem

Manhattan School of Music has a 1.0 ratio with relatively modest debt ($26,994) - the problem is not excessive borrowing but low earnings ($26,878 median). Music performance careers are simply low-paying at the median, and the credential costs enough that graduates start their careers underwater relative to debt service.

This pattern holds across the data for arts programs more broadly. Our majors ROI analysis shows drama ($22,888 median), dance ($26,152), and film arts ($27,398) at the bottom of earnings tables. When combined with moderate to high tuition, the ratios become problematic regardless of school quality.

The Schools Doing This Right

For context, the schools with the best debt-to-earnings ratios in the dataset:

The pattern at the top: either very low debt (strong institutional grant aid) or very high earnings (engineering, CS, finance outcomes) - often both.

How to Check Before You Enroll

The College Scorecard publishes debt and earnings data for every school. For any school you are seriously considering:

1. Go to collegescorecard.ed.gov and search the school 2. Find "Median Total Debt After Graduation" and "Median Earnings" (typically 2-4 years post-enrollment) 3. Divide debt by earnings - if the ratio is above 0.75, plan your repayment path explicitly before enrolling 4. Check our school profiles for the combined ROI score that incorporates debt, earnings, completion rate, and repayment success

A school's debt-to-earnings ratio is not the only thing that matters. Completion rate, selectivity, location, and program quality all factor in. But it is the one number that tells you, directly, whether graduates are financially equipped to handle what they borrowed. Schools above 1.0 are sending graduates into a structural deficit on day one of their careers.

Sources: U.S. Department of Education College Scorecard, Federal Student Aid Gainful Employment data. All debt and earnings figures from most recent College Scorecard data release, as of April 2026.