Student loans are a conditional gift
Student loans can be a convenient and helpful way to pay for tuition and other college financial responsibilities. USU students use a combination of grants, loans, parental support and personal income to pay for their education. For those with less financial supplementation from parents or grants, loans are generally the next option.
Stafford loans are awarded based on need, similarly to grants. Loans, however, must be repaid after graduation. The Free Application for Federal Student Aid (FAFSA) uses the student’s income along with their parent’s income and assets to calculate how much, if any, financial aid will be awarded.
Ashley Erwin, junior in public relations, has received both grants and loans to fund her education. Erwin attended community college in California before coming to USU. She said her student loans are a backup plan to help her prevent working full-time and going to school full-time simultaneously. She now works part-time and said she can enjoy her college experience more fully.
“I think it will be worth it because of the experience I will have and I will be able to teach my children. I will be able to communicate and participate in intellectual conversations with others,” she said.
Erwin said coming from California, where schools are very expensive, she feels going to USU is a good opportunity for her. She considered going to San Diego State, where she said she would be paying more than $15,000 before housing and books.
“That would scare me,” she said. “I don’t know if I would have gone all the way through because I don’t know how I would have made it.”
Though USU tuition is less expensive than many other schools, after four years, student loans can add up.
Melissa Crook, a USU graduate, is still paying off her student loans. At peak, she owed around $20,000. She said the prospect of paying off her debt is overwhelming.
“(Getting loans) got me done with school faster. But at the same time, I still have to pay it all off and the interest rates are ridiculous,” Crook said.
She said the interest on her loans range from 6-7 percent.
To pay back the loans, Crook is working full-time at Smith and Edwards in Willard, Utah. She said the loans have a monthly payment plan, but to stay on top of them, she pays every two weeks. Her plan is to pay it all off in six years, “but we’ll see,” she said. She currently owes around $16,000.
Crook has two bachelor’s degrees, the first in FCHD from BYU, and the second from USU in secondary education with a mathematics emphasis. Her first degree was paid for by scholarships, but the second had conditional funding through the T.H. Bell Scholarship.
She said this fund, set up by the Emma Eccles Jones College of Education and Human Services, helps students who already have a bachelors or higher degree. When she decided not to become a teacher, she had to start paying back any money she had received from this scholarship.
Vincent Bauman, a junior in biochemistry, has borrowed $4,000 in Stafford loans and said he thinks he might eventually have to borrow more.
“I don’t like it, I don’t like being in debt,” Bauman said. “I feel like I owe people money. I know I will have to pay it back someday and it will be more than I borrowed.”
He said he hoped to pay back his loans in the summer, but will “probably just have to get more anyway.” He said he worries about how long it will take to pay them back based on his family’s experience with student loans.
“My stepdad is still paying his student loans off,” Bauman said. “It sucks, that sums it up.”
Though his financial status is difficult, he said he thinks using loans will eventually be worth it.
“It’s not a whole lot of debt and I should be able to get a better job because of it,” he said.
Bauman said he does wish his family could help out more.
“My grandma buys my books,” he said. “I would rather (my family) help pay over getting more loans.”
Some students turn to their parents and other family members to help pay for their education. Cody Caldwell, a sophomore in computer science, said his parents have helped out.
“I borrowed some money from my parents, but not a lot,” he said. Caldwell said he had borrowed about $500 to supplement what his scholarship would not cover.
Todd Kendall, a junior in civil engineering, is less concerned about repaying his $20,000 in Stafford Loans.
“I don’t worry a lot,” he said. “I figure as long as I keep on going, I will be able to manage. I know I will be able to get through.”
Kendall has a plan post-graduation to pay off his debts.
“After I graduate and have a fixed job, I’ll treat (student debt) like a car payment and set money aside each month. I’ll probably pay back more than the actual minimum to get it out of the way quicker.”
Kendall said he believes loans are a good choice if you need them.
“I was hard-pressed for money. I didn’t really have any extra money to pay for school. So (loans) are what I used to pay for school and continue in my education,” he said.
Students seeking more information about grants, loans and scholarships can contact the Financial Aid office in the Taggart Student Center.
– natasha.bodily@aggiemail.usu.edu