With graduation comes responsibility, and while seniors are visualizing freedom from classes and homework, many are also facing the reality of thousands of dollars of debt.
Members of this year’s graduating class who received financial aid throughout their time at the University have to pay back an average of $17,000 after commencement.
The debt average is up about $500 from the past six or seven years, Financial Aid Director Elizabeth Bickford said. She said the number is comparable to the national average.
She also said the level of debt many University students will face after completing their undergraduate degree is “worth it.”
“In the broad picture, it’s actually not a bad decision to take out loans if you need to,” she said. The potential earnings students can expect to
receive throughout their future careers makes the investment worthwhile, she added.
And there are ways to make paying off the tab a little easier, such as loan consolidation.
“It can make it easier for students repaying one lender rather than repaying three over time,” Bickford said.
While consolidating loans can make payments simpler, Bickford cautioned that the process could extend the repayment period and come with higher interest rates.
“Make sure that you’re an informed consumer,” she said about choosing a payment plan.
Most students can plan on paying about $200 a month during a 10-year period, depending on variable interest rates and payment plans, she said. This year’s student loan interest rate, which changes every year, is 2.82 percent. The highest it can reach is 8.25 percent, according to the Office of Student Financial Aid.
Students can contact the Office of Student Financial Aid or check out the Direct Loan Servicing Web site at www.dlssonline.com for more tips on how to find the best payment method for each person, Bickford said.
Despite these options, some feel the cost of college education is too great of a burden. Oregon Student Association Field Organizer Rocky Dallum said students shouldn’t need to be educated on what is the best method of payment, but rather universities and the state should work to lower the cost of attendance. He said the amount of student debt is a problem.
“When people know what kind of debt they’re going to end up in, it turns people away,” he said.
Bickford said from the 1998-99 academic year until 2002-03, the amount of undergraduate residents who qualified for need-based aid and attended the University rose by 24 percent. The number of undergraduate residents who applied for aid, attended the University and also worked rose by 11 percent.
“It means needy students are looking at the University as an option,” she said. Bickford was unable to provide statistics for students who actually received financial aid, however.
Bickford did say the state needs to better support students while they work toward their degrees. She said the federal and state government need to provide more grant assistance for financially challenged students.
“I think that’s where some of the pressure can be alleviated,” she said.
Dallum said it is still a problem when students have to work jobs throughout their education.
“It increases the amount of time it takes people to graduate,” he said.
Senior Nathan McNary said he has spent six years working toward his undergraduate degree, an extended period due to working 40 to 60 hours a week. He said working so many hours to defray costs didn’t always give him enough time to study, but living on a tight budget is just part of being a student.
“I think it’s just what you got to do when you’re in college,” he said.
Bickford said students need to face the reality of their financial situation, even if it means passing up that decaffeinated latte every day. She said when people cut down on minor expenses it can translate into less educational debt.
Junior Jessie Dabney said she plans to graduate with a $14,000 to $15,000 debt after two years at the University. She said she doesn’t like to think about her accruing debt, especially when future job placement is uncertain.
“It’s a little overwhelming,” she said, adding that she does what she can to limit spending such as bringing her own lunch to school and not participating in extracurricular activities.
Students can lighten their financial burden in several ways, Bickford said. She stressed the importance of budgeting for students on a fixed income.
“People don’t keep track of their budgeting,” she said. “They’re not keeping track of the small things.”