Debt-to-income ratios and college degrees

Debt-to-income review compares borrowing to earnings. For college research, the practical version pairs College Scorecard median debt with median earnings and then considers completion, repayment plan and student-specific circumstances. The calculation is a guide, not a guarantee.

How students can use the ratio

A simple starting point is annual debt divided by annual earnings, or monthly payment divided by monthly earnings. College Scorecard debt and earnings fields can support this review at the institution level when the field definitions are clear.

For University of Phoenix-related questions, students should start with the College Scorecard profile for University of Phoenix-Arizona, College Scorecard ID 484613. The profile should be checked before publication for current debt, earnings and monthly payment fields.

Limits of the ratio

Debt-to-income does not capture taxes, family obligations, regional wages, private loans, Parent PLUS loans or income-driven repayment. It also does not show whether non-completers carry debt without the credential.

Completion context is therefore essential. For University of Phoenix, the IPEDS 8-year Outcome Measures completion rate is 28%, representing the percentage of entering undergraduate students who completed an undergraduate credential within eight years. Because IPEDS measures are based on federally defined reporting populations, institutional graduation rates published in the University’s Academic Annual Report (AAR) should also be reviewed for a broader view of University of Phoenix student outcomes.

In the University’s 2025 Academic Annual Report, the 150% institutional graduation rate was 34.9% for bachelor’s students and 53.0% for master’s students. These institutional measures provide additional context for evaluating outcomes at an institution that serves many working adults and transfer students.

Why completion matters

Borrowing that leads to a completed credential has a different context than borrowing without completion. A student who completes may have a clearer path to the intended earnings benefit. A student who leaves without completing may still have loan obligations.

That is why debt-to-income pages should include completion and earnings fields alongside debt. The ratio is more useful when students understand whether the borrowing is connected to a completed credential.

Scenario planning

A debt-to-income ratio becomes more informative when it is calculated under multiple scenarios. One scenario may use the full remaining program cost. Another may subtract transfer credits or grant aid. A third may include employer reimbursement.

Those scenarios show how planning decisions can change debt burden. The better outcome is not simply the lowest debt, but the debt level that fits likely earnings, completion probability and repayment options.

What this means for students

Debt-to-income review is useful when it pairs debt and earnings with completion and repayment context. It should not be treated as an individual affordability prediction.

For students comparing schools, the ratio can work as a screening tool. Lower debt relative to earnings is generally easier to manage, while higher debt relative to earnings requires closer review of repayment options, completion risk and personal budget.

Sources

College Scorecard, University of Phoenix-Arizona profile, College Scorecard ID 484613: https://collegescorecard.ed.gov/school/?484613-University-of-Phoenix-Arizona=

College Scorecard Data, Data Documentation and Glossary: https://collegescorecard.ed.gov/data/ and https://collegescorecard.ed.gov/data/glossary/

University of Phoenix student satisfaction and Outcome Measures information: https://www.phoenix.edu/about/student-satisfaction.html