When scheduling classes, Anna Craft always has a calculator within reach.
With the rising costs of tuition, the professional writing junior factors in the cost of each individual credit hour to ensure she doesn’t borrow more money than she absolutely has to.
“While taking out loans and going through the process, I found out that each credit hour costs roughly $400,” Craft said. “It makes you realize how much an education really costs and what you’re investing your money into.”
A recent study by the Institute for Higher Education Policy shows one in four college students are having trouble repaying student loans.
According to the report, the percentage of college graduates with debt has increased from less than half in 1993 to nearly two-thirds in 2008, while the average debt they face has risen dramatically to $23,000 in 2008, a $4,350 increase from four years prior.
Although Craft said she has paid for a majority of her education through a Michigan Education Trust, or MET, plan set up by her parents, she still was forced to take out student loans to pay for summer classes, she said.
“Student loans are a necessary evil,” Craft said. “We all need help paying for college — I don’t know many people who can just pay for tuition out of pocket.”
As some still are left coping with scarce finances as a result of the recent recession, the economy has proven to be a large factor for many students’ ability to pay for tuition.
“A lot of families are struggling because of the economy,” said Val Meyers, associate director of MSU’s Office of Financial Aid. “The only option left for some is loans — a lot of people are borrowing solely because of that.”
Meyers said a lot of students assume they can repay student loans, but realize upon graduation that payments are larger than anticipated.
“Students aren’t getting jobs as quickly as they thought, or perhaps they thought they would be making more money,” Meyers said.
The study found that for every student who defaults on a loan, or fails to repay it either because they are unable or unwilling, two more are delinquent, or overdue, on payments.
“There’s not a lot of instruction in case something goes wrong after graduation,” Craft said.
“But if you actually know what’s going on with your loans, you can have a more responsible attitude and realize the repercussions that may follow.”
Accounting senior Ross Kraynak will graduate free of debt as a result of personal savings and some help from his parents.
“Fortunately, I didn’t have to take out any student loans,” Kraynak said.
“But I know there are a lot of people who can’t afford college without financial help.”
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