Student loan debt mounting for grads
April 25, 2006 - Posted in Student LoanUniversity of New Hampshire grads are leaving school in more debt then ever before.
UNH students who took out federal loans graduated owing an average of $22,851 last year, 60 percent more than in 1995. Students who took out private loans graduated owing an average of $16,664, an increase of 60 percent since just 2001.
The rapid increase in private loans is largely a result of a scarcity of federal loans, said Suzy Allen, UNH director of financial aid. And unlike federal loans, private loans tend to have higher and variable interest rates, many have few options if a student can’t afford payments and interest on them accrues while a student is in college.
“Higher education is a burden, not an opportunity,” said UNH junior Scott Peach, who expects to graduate owing $25,000. “Unless you have money nowadays, you can’t really get far.”
Rising costs have steadily pushed tuition at UNH up 7.8 percent for residents and 6.8 percent for non-residents in each of the last five years, but federal loans and grants for higher education haven’t kept pace.
In-state students at UNH paid $16,810 in tuition, fees and room and board this school year while out-of-state students paid $28,530. New Hampshire residents can expect to pay more than $70,000 for a four-year education at UNH. Non-residents will pay much more, putting down more than $120,000 for a four-year degree.
“I’m going to be graduating with right around $20,000 in debt, which in comparison to other students isn’t that bad,” said Nate Smith, 21, a UNH senior. “I’m happy with $20,000 in debt — that’s sad.”
Smith said he has little in savings and wants to go on to graduate school, but paying for it will just be another bill he doesn’t know if he can afford.
“We sit around and we’re happy when we have $300 in our savings account, but when you graduate if you have $300 in your savings account, you’re on welfare,” he said.
Source: boston.com