Financial need exists, and student debt is in upward trend
Student debt is on the rise.
According to information from the financial aid office, during the 2000-2001 school year, the total amount awarded to Utah State University students was over $41.5 million, up from about $28.5 million in 1992-1993.
USU students took out $21.3 million in loans in the 1995 to 1996 school year. That number more than doubled in five years, with students borrowing almost $24.2 million in the 2000-2001 school year.
The number of students with loans and the amount of money they have borrowed more than doubled from 1990 to 2000. The average debt is about $13,000 for seniors at four-year public schools, according to the Salt Lake Tribune Web site, www.sltrib.com.
Jacob Brazall, a financial aid counselor, said it is easy for students to receive loans.
“No matter how much money you make, you can get an unsubsidized loan unless you have too much scholarship,” he said.
An unsubsidized loan is one that accrues interest while the student is still in school, whereas the government pays the interest on a subsidized loan until graduation, Brazall said. Students may also receive grants of $200 to $2,000 a semester, the main one being the Pell Grant.
“Grants are free moneys,” Brazall said. “If a student is lucky, they’ll get a subsidized loan, where the interest is paid by the government. If they’re really lucky, they’ll get a grant. It’s common to get both a loan and a grant.”
Loans can be federal aid, such as Perkins or Stafford loans, or alternative loans, which are done through private banks, Brazall said.
From 2000 to 2001, 6,054 USU students received an average of $2,061 in Pell Grants, and 5,413 students averaged $4,468 in government loans, the financial aid information stated.
The rewards are based on financial need, which is determined by the Free Application for Federal Student Aid and includes questions about marital status, amount of time in school and the income of both the student and his parents’ income from the previous year, Brazall said.
“The government puts all of the information into an equation and from that they determine financial need,” he said. “Based on that, students may apply for grants or loans or both.”
Students may still receive financial aid for fall semester until early December or April for spring semester, but should apply six to eight weeks before the deadline, Brazall said.
“There are always those who apply just before the deadline – some get it, some don’t,” he said. “It depends on accuracy and financial need. Students should apply a couple of months before finals, just to be safe.”
Brazall said the best time to apply is in February, when the W-2 forms have been mailed out and students have their taxes done.
To apply for financial aid, students must complete a FAFSA and a Verification Application. The FAFSA is for the government and can be done online. The VAPP is for USU and is used to verify the information in the FAFSA with copies of tax returns, Brazall said. The FAFSA takes about an hour to complete, and the VAPP takes about half an hour, he said.
After students apply for aid, they should expect to wait several months before receiving a check, Brazall said.
“For a first-time borrower, it can take up to three months to see a check, based on applying, verifying and mail time,” he said.
Students can pick up the forms and information for financial aid in the Financial Aid office located on the first floor of the Taggart Student Center.