The independent student news site of San Marcos, California

The Cougar Chronicle

The independent student news site of San Marcos, California

The Cougar Chronicle

The independent student news site of San Marcos, California

The Cougar Chronicle

Student Loans: Our Last Source

Student dependence on borrowed money rising

By: Ashley J. Day

Media Credit: ehow.com

In today’s world, some American college students have no choice but to take out student loans to fuel their secondary education. With institutions dangling “instant” money accompanied with low interest rates, students have an enticing offer that develops debt very early in life.

Parents, teachers and elders tell youth that attending college and getting a degree is the key to success. Anthony P. Carnevale, a research professor and director of Georgetown University Center on Education and the Workforce, said, “College credentials are now a prerequisite for a middle class lifestyle.”

According to the Bureau of Labor Statistics, 70.1 percent of America’s youth choose to pursue a college education. Finaid.org reveals 58.8 percent of undergraduate students take out loans to fund their life through college. More than half of the undergraduate population has to borrow money to get through the first decade of their adult life.

Experts agree obtaining a student loan is an easy process. Cal State San Marcos quality service representative for enrollment management services, Mary Rapp said, “We try to make it as easy as possible. Financial Aid can walk you through the process of securing a loan. I would say it’s fairly easy.”

Alisha Madison, a second year student at San Diego State University agrees with Rapp. “On a scale from 1-10, 10 being the easiest, my loan process was probably an 8. I just had to pretty much click, activate and read the terms. Since I had taken one out last year, it was easier this year. Last year it was a longer process, taking a couple days, making it more difficult.”

The majority of students realize that by taking out loans they will be in debt for many years after they graduate. According to collegeboard.com, a student who chooses to take out a loan and repay it on a standard payment plan will pay back the actual loan and interest on that loan for up to a decade. Most students receive their bachelors degrees while in their mid-20s. This means they will be paying on a loan well into their 30s, when they are probably thinking about starting a family.

Rapp said, “The majority of students understand what they’re getting themselves into. If they come to the financial aid department, we explain the process completely. Students leave with a full understanding. If they have questions the financial department cannot answer we give them additional resources to get more information on the loan process.”

Students do not let the loan process scare them. When asked if borrowing money changes her choice of major, Madison said, “No, I still want to major in business. [Me] having to take out a loan has not changed any plans.”

Rapp feels the same way. She said, “Not in this century! People are broke. I don’t think majors have anything to do with taking out a loan. Students depend on loans to live. If that’s their only means to pay for education and to survive, then they have to go with it.”

More than 50 percent of the student population relies on loans to fund their way throughout college. Some of the reasons are their parents make too much money, as determined by the federal government, or students’ parents do not support them at all. These students decide to take on a loan. A clock on finaid.org ticks the balance on student loan debt. 850 trillion dollars is the latest estimate. Even so, this does not stop students from taking the loans.

“I’d rather be taking out loans for school than not being able to go to school at all. Education is the most important thing anyone can have right now and I’m not going to let the fear of being in debt affect my choice,” Madison said.

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