Student Debt

As I got a statement in the mail the other day about my student loans, it got me thinking about where the state of student loans are in the midst of the tough economic times. An increasing number of students nationwide are taking out loans to pay for college. The problem is, how does a new grad land a job with a decent salary in this economy so that they can start making reasonable monthly payments? Fortunately, for me I currently have a job that is supporting my "school habit" however, in a year when I job search, who knows what will be out there.

In Colorado and elsewhere, financial aid advisers are scrambling to handle student questions about deferring debt payments as growing numbers of students apply for financial aid. And while Colorado’s ranking in terms of student debt load looks good compared to other states, there are troubling financial aid trends here as well. Colorado ranks 40^th of 49 states in terms of average college student debt load with the average debt being $18,321, compared to the District of Columbia, which has an average student debt load of $29,793, according to the Project on Student Debt, funded and produced by the Oakland, Calif.-based Institute for College Access and Success.

While tuition increases get people talking about how they’ll pay for college, it isn’t usually tuition that is the breaking point for many families but other costs such as housing, food and books. That’s especially true in Colorado where tuition at public colleges for residents remains relatively affordable. However, the affordability might change in years to come as all of the public institutions are raising not only their tuition costs, but everything else that goes along with being a student.

Below is a list of percentage of students with debt in 2009 in Colorado and from which institution:

Adams State College 70%

Colorado School of Mines 74%

Colorado State University 66%

CSU-Pueblo 73%

Fort Lewis College 67%

Mesa State College 73%

Metropolitan State College of Denver 76%

University of Colorado-Boulder 47%

CU-Colorado Springs 69%

CU-Denver 74%

University of Northern Colorado 69%

Western State College 74%

Average 69%

It just goes to show that more and more of us are having to get student loans. And as students continue to get post bachelor degrees, the debt will continue to accrue. What are campuses doing to educate students about student loan debt and what the end result might be if they take out loans every semester? I remember in undergrad getting my loan check in the mail... I had to use that money on books and tuition as my family couldn't help me pay my entire way through college, while some of my peers were using their loan checks to buy new electronics and other fancy gadgets. I know that it is personal choice that decides where that money is going to be spent, but schools are not educating about the consequences enough. Perhaps more education about money and fiscal responsibility could help the student debt crisis. Clearly students will have student loans and debt that they will owe after graduation, however, maybe it won't be as much. Just a thought!

Website where I got most my information from: http://www.projectonstudentdebt.org/