MSU’s average debt of 2011 graduates is $23,725 compared to last year’s $25,250 average.
The research also shows national college graduate unemployment rates dropped from 9.1 percent in 2010 to 8.8 percent in 2011. At MSU, employment rates increased 7 percent from 2010-11, up to 53 percent from 46 percent.

Economics associate professor Christian Ahlin said there are two ways to look at the data: from the supply side and from the demand side.

From the supply side, lenders might be less willing to lend to students, leading to fewer loans and a decreasing debt rate. He said government programs could be making it more difficult for borrowers to borrow and for creditors to collect the students’ repayments.

“It is hard for lenders to be reasonably sure of being repaid student loans ­— unlike many other loans, there is no collateral posted,” he said. “Anticipating potential default on the loan, lenders may not lend in the first place.”

On the demand side, Ahlin said household incomes could be rising because the state’s unemployment rate is falling. Therefore, students can afford more college tuition themselves and might be taking out fewer loans.

Despite favorable trends, many students still leave college burdened with debt.

The survey shows 45 percent of graduates are in debt and struggle to afford the cost of an education. MSU in-state tuition and fees amounts to about $11,000 per year and the survey predicts with added expenditures, such as books, room and board, the total cost of attendance is $21,690.

The 2011 national debt average is $26,600 per person and two-thirds of college seniors graduated with at least some amount of debt, according to the project.

Val Meyers, associate director of the MSU Office of Financial Aid, said student debt rates are high because the majority of students cannot pay for college out-of-pocket and are not financially disadvantaged or meritorious enough to earn a full ride.

“Very few students have enough scholarships for other demands to pay their costs,” she said. “Many students in the middle have to borrow some (money).”

MSU’s about $24,000 average debt is low compared to other Big Ten universities. The highest is Pennsylvania State University at about $34,000, and the lowest is the University of Nebraska at about $22,000.

“Students’ debt sucks, to be blunt,” said Brianna Shamsuddoha, a comparative culture and politics sophomore.

Shamsuddoha said she was lucky enough to fund college through the Michigan Education Trust, which allows guardians to pre-purchase tuition for Michigan students, but she’s on her own paying for graduate school.