Student debt after college, due to a lack of non-loan financial aid, has become an incredibly important issue. (John Walker/ Creative Commons)
By ABIGAIL HEINEMEYER
The college experience is like nothing else. It is composed of amazing friendships, life-altering classes and priceless memories.
…But are they priceless? Many college students today might beg to differ.
According to The Institute for College Access and Success, American students have been facing a rise in debts while earning a college education — a situation that is expected to become more dire in the coming years. In 2013, TICAS released “The Project on Student Debt,” which tried to get a grasp on the current situation concerning student debt in the United States. It then tried to inform the public of what it means for American families.
Today, young adults looking to gain a college education face a decision that is much harder than in years past. Do they splurge on a more expensive school with better academics or play it safe with a more affordable local college? It is a hard call to make, and one that individuals must decide for themselves.
Brigid Hilton, FCRH ’17, recalls being in this situation just last spring and the toll it took on some of her peers. “I know people that ended up not being able to go to the school that they wanted because they were offered a full ride or a good scholarship and had to take that opportunity,” she said.
As the issue of paying for a college education becomes more of a struggle for families, many are resorting to taking out student loans. This growing trend has students across the country graduating in debt. As Hilton states, “It is becoming a norm. Not really a good norm, but it’s now something that a lot of people have to deal with.”
The research published in “The Project on Student Debt” validates Hilton’s statement. Its findings show that “nationally, 68 percent of 2012 graduates of public and nonprofit four-year colleges combined had student debt, with an average of $27,850 per borrower.”
While this is a national statistic, state averages vary. TICAS found that certain regions of the country tend to have similar averages. For example, states with lower debts are often in the West or the South while those with higher debts are in the Northeast or Midwest.
Although Fordham is not seen in the list of universities in “The Project on Student Debt,” and did not volunteer its information for the study. Students here are nonetheless concerned with paying off student loans following graduation.
Gino Papa, GSB’14, states that “As expensive a school as Fordham is, concern over debt is inevitable throughout the student body.”
It is with this apprehension in mind that Fordham students look to their time after college while making decisions here. Papa is a good example of this, as it impacted his choice of studies. “I originally decided to be an accounting major because of its reputation as a recession-proof major and the starting salary potential,” he said. “My plan worked for me in that I have found a job post-graduation in my field. The debt will still be a burden to bear after I graduate, but I justify that by being a step ahead with a job.”
While choosing an economically-safe career and finding a job following graduation are both imperative to an individual’s financial situation, there are other options to ease the burden. For example, Pay As You Earn, or PAYE, forgives an individual’s remaining debt 20 years after his or her graduation.
Although programs such as PAYE exist, TICAS is calling for reforms to put a larger dent in the issue. In “The Project on Student Debt,” various ideas were listed that would help American students with college debt. The organization calls on both government and universities to follow through with a variety of actions, advising it to “collect better data on student debt and outcomes” as well as “improve and promote awareness of federal loan repayment options.” While some efforts have been made to decrease the severity of student debt, studies like the one from TICAS show that there is more that must be done.
Although the thought of students loans might be cause for middle-of-the-night anxiety attacks, it is also important to remember that we are investing in ourselves. While the job market is a harsh reality following graduation, TICAS reports that “on average, four-year college graduates continue to experience far less unemployment and to earn higher salaries than their counterparts with only a high school education.”
While there might be troubled years ahead, we must not only hold onto the hope that our investment will pay off, but also encourage our law makers to make changes in how we pay for our college education.
Abigail Heinemeyer, FCRH ’17, is a communication and media studies major from Bethel, Conn.
