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According to a recent study, student loan debt is rising faster than starting salaries for new college graduates.
The Project on Student Debt found that while average starting salaries from 2006-07 rose by 4 percent, student debt rose by 8 percent during the same time period. |
“This study represents what is going on in the economy, as well as increasing college costs,” said
Esther Manogin, director of student financial aid.
The study found the average debt for North Carolina was $17,760 with 55 percent of college students in debt.
However, Appalachian State University students are in debt an average of $14,838 when they graduate and 49 percent have some form of debt.
The Project on Student Debt urged Congress to pass legislation that would help alleviate the cost of college and the amount of debt that college graduates would have. The legislation has been passed and signed into law by President George Bush.
“While we’re not yet sure what this new legislation will mean to students at [Appalachian], the goal is to make college more affordable through loans and reforming Pell Grants,” Manogin said.
According to the U.S. Department of Education, Pell Grants provide grants to low-income
undergraduate students. Pell Grants do not have to be paid back.
“Students who receive Pell Grants have to take out other loans to help pay for what the Pell Grants will not cover,” said Ajita Talwalker, a policy consultant for the Project on Student Debt. “In 2004, 88.5 percent of Pell Grant recipients had student loans, compared to 51.7 percent of non-Pell Grant recipients.”
The legislation, according to the Project on Student Debt, will make “student loan repayment more fair and manageable,” as well as increase grant aid to students.
“Something needs to be done,” said Dustin P. Rubin, a senior political science major. “I know people who went to certain colleges just because of the cost, even if it might not have been the right fit for them.”
On average nationwide, student debt has increased from $9,250 to $19,200 over the past decade.
Parents are also taking out loans to help pay for college.
“We have seen an increase of parents wanting to take out loans so their children are stuck with less debt,” Manogin said.
With the new legislation now signed into law, it is the hope of many college students and their parents that debt levels will go down.
Tuesday, 09 October 2007
by JAMISON DORAN
News Editor The Appalachian
