The main objective of a student when he/she enters college is to work single-mindedly for landing a suitable, well paying job. But as college tuition gets costlier, and government loans set borrowing limits higher – it is becoming increasingly difficult for students to pay off their college debt and even begin to shape their future. The amount of college debt is going higher and higher and more and more students are now finding themselves in a hole. And the situation, as only to be expected, is much worse for poorer students.
Rise in college debt
The average amount that an undergraduate student is likely to borrow is to the tune of $19,300. The amount was only $12,100 ten years ago. It is not that students from rich families never run into college debt to meet their education expenses, but it is always the poorer students who bear the brunt of the problem. About 72% of poor students go into debt to pay for their education. The average monthly rate amounts to $210, which is equivalent to 6 to 15% of the expected earnings of a fresh graduate. A recent survey of 1300 college students has revealed that 13 percent of them will require less than five years to pay off their student loans, 21% will take 5 to10 years, and 36% more than 10 years. The survey observed that only 30 percent of the students interviewed claimed to have no student loans.
Given the rise in college expenses, many students are running into college debt and looking for jobs as well to repay it. It is not very difficult to find jobs that fit their schedules and financial requirements. Those who work 10 to 15 hours a week are likely to complete their graduation as well.
Increase grants, scholarships
The United States education department is, however, not so worried over this rise in college debt and its consequences. It believes that lower interest rates and higher paying salaries are enough to offset this disadvantage. However, when nearly half of these college graduates say that they will need more than ten years to pay off their loans, the department’s belief sounds unconvincing. Ten years is a long time, and most graduates would like to find themselves settled by then. Many of them are likely to have families by that time. It is thought that college is necessary for a student’s financial success in life. But if the situation does not improve, the financial pressure of college fees will only hold the students back from fulfilling their dream. Things can, however, be better if grants and scholarships are increased.