Like a gathering storm cloud gradually rolling in from the distant horizon, college debt looms over the graduating senior. To avoid thinking about debt never makes the reality go away. USA Today reported the average graduating college senior in 2006 had $19,000 of debt. What have we gotten ourselves into? Few prospects are more intimidating than owing a substantial portion of my next several hypothetical paychecks to a financial institution.
"This is literally a new form of indenture," said Barmak Nassirian, Associate Executive Director of the American Association of Collegiate Registrars and Admissions Officers. "It is something that every American parent should be scared of."
College costs have risen by over 50 percent since 1990. The amount of government aid has not risen nearly enough to keep up. Government financial assistance options include work-study, Federal Pell Grants, PLUS loans, Perkins loans and Stafford loans. However, many students fail to qualify for any government aid and are forced to take out significant private loans.
Unmanageable debt can shipwreck dreams. Getting a boring job simply to pay off loans and survive after school becomes an increasing necessity and sad reality. Yet, education is also a great opportunity and responsibility. Debt should not and cannot be avoided in all circumstances.
Owing less money makes the great next step of graduating from college far less intimidating.. There are several ways students can avoid accruing needless debt by the time they walk across the stage to receive their diplomas.
First off, buy only what you need and budget well. This is pretty straightforward financial advice in general. Shop at thrift stores instead of malls. Avoid buying the latte in the morning. Every little bit helps. Credit cards can also be especially devastating for finances, so use them with caution.
Here's another helpful and straightforward tip. Look for free money. Scholarships are generally a shot in the dark, though the effort may still be worthwhile. While search programs like www.fastweb.com can help you get started, your best source of scholarships may be the school you already attend. Most departments at Whitworth offer a number of scholarships for students. There's a lot of money in the world; as students, we just need a help accessing the sources.
Finally, think well about your first financial steps after graduation. Consider the cost of living in different areas of the country, pay off your highest interest loans first and make your loan payments in time to ensure better credit. If you are pursuing a social service or public health career, there also may be loan deferment or forgiveness programs available. Taking these well-informed next steps is crucial when the real world rolls around.
Hard as it may be, panicking about debt is not a helpful solution. Trust me, I've tried it. Careful spending and consistent payments will whittle debt down after school, little by little. You don't have to pay everything back in one lump sum. So if college debt is bearing down on you and making you more than slightly uneasy, take a deep breath and relax. You'll be OK.
John Williamson is an opinions columnist and a senior majoring in communications. Contact him at john.williamson@whitworthian.com.
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