Debt now a near necessity for college students
Madison Dennis
Issue date: 11/5/09 Section: Front Page
Debt has become a hot topic in recent news. Many people feel that part of the recent financial downturn can be attributed to the amount of debt the average American is carrying. Recent studies by the National Postsecondary Student Aid Study suggest that young adults are saddled with greater amounts of debt earlier than ever before.
On-campus banks and a variety of discounts aimed at students attract young borrowers. Few students are able to pay for college without some sort of financial assistance. With features like online banking and reduced interest rates, it is becoming more and more common for college students to graduate with more debt.
Justin Ziesenis, a senior training to become a firefighter, only took out enough to cover the expenses of an education.
"My decision to take out a loan was based around the fact that I didn't receive enough in scholarships," said Ziesenis.
Statistics reveal unsettling trends: lack of proper guidance in financial aid habits, irresponsible spending, a too-accessible lending environment and rising tuition mean that college students everywhere are increasing their debt before they even enter the work environment. Students who borrow more than they need are finding that their debt is keeping them from financial stability. Some studies report that the average debt of a young adult leaving college is $20,000. This number is double what it was 10 years ago.
"I took out the bare minimum that I needed for tuition," said Ziesenis. "I took out a little over five thousand dollars."
Ziesenis then used money he had saved up throughout the previous year to fund purchases like books and other educational materials.
Stacie Strader, senior in communication, took out a student loan through the school, while her parents borrowed through a government loan.
"They were able to get lower interest rates, so I'm just paying them back," she said. "I didn't have any other way of paying for myself."
Strader worked her first three years of college to provide enough money so that she didn't have to take out a bigger loan.
On-campus banks and a variety of discounts aimed at students attract young borrowers. Few students are able to pay for college without some sort of financial assistance. With features like online banking and reduced interest rates, it is becoming more and more common for college students to graduate with more debt.
Justin Ziesenis, a senior training to become a firefighter, only took out enough to cover the expenses of an education.
"My decision to take out a loan was based around the fact that I didn't receive enough in scholarships," said Ziesenis.
Statistics reveal unsettling trends: lack of proper guidance in financial aid habits, irresponsible spending, a too-accessible lending environment and rising tuition mean that college students everywhere are increasing their debt before they even enter the work environment. Students who borrow more than they need are finding that their debt is keeping them from financial stability. Some studies report that the average debt of a young adult leaving college is $20,000. This number is double what it was 10 years ago.
"I took out the bare minimum that I needed for tuition," said Ziesenis. "I took out a little over five thousand dollars."
Ziesenis then used money he had saved up throughout the previous year to fund purchases like books and other educational materials.
Stacie Strader, senior in communication, took out a student loan through the school, while her parents borrowed through a government loan.
"They were able to get lower interest rates, so I'm just paying them back," she said. "I didn't have any other way of paying for myself."
Strader worked her first three years of college to provide enough money so that she didn't have to take out a bigger loan.
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