EDUCATION
RETHINK THE REFUND
By Brooke Vann
C
college graduation is a very excit
ing day, but just a few months after that
happy day most graduates will get a slap
in the face by reality.
Time to start paying the bills.
"We haven't been really talked about all
the loans and everything that's going to
happen once we're finished with school
yet" said LaShawn Best, a Fayetteville
State University junior, who, like many
students, just doesn't think about the
loans.
When asked if Best even knew how much
he is going to have in loans, his response
was, "No, I have no idea."
It is typical for students at universities
nationwide to ignore the cost of a loan
or the idea of paying it back, until they're
about to graduate. With tuition increas
ing all the time, borrowing is a "necessary
evil" for many students.
Last year, students took out $117 billion
in new federal loans, pushing the total
above $1 trillion, according to the Con
sumer Financial Protection Bureau.
"In these tough times, a college degree
is still your best bet for getting a job and
decent pay," said Theresa "Raey" Walker,
FSU student, as well as financial con
sultant. "But, as debt levels rise, fear of
loans can prevent students from getting
the education they need to succeed."
But Walker said she doesn't believe col
lege loans are the reason people are in
debt.
"It's the rising cost of tuition and not hav
ing enough jobs available after college."
Other students such as Best, however
said that heavy student-debt load weighs
on decisions about careers.
"I don't think everyone should be choos
ing a job based on whether or not their
income will be high enough to pay of
student loans," Best said.
DeOndra Simmons, FSU student ser
vice specialist, suggested that students
explore all forms of financial aid before ’
resorting to a pile up of student loans.
Forms of financial aid include grants and
scholarships (which you don't have to re-
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your interest will accumufat
Simmons also provided a detailed expla
nation of different loans available to stu
dents. The following conversations wii
Simmons is provided in a Question
answer format
Q: What's the difference between Direct
Subsidized Loans and Direct Unsubsidized
Loans?
A: In short. Direct Subsidized Loans have
slightly better terms to help out students
with financial need.
Direct Subsidized Loans are available to
undergraduate students with financial
need.
Your school determines the amount you
can borrow, and the amount may not
exceed your financial need.
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eligible federal stude
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unrestricted income
Simmons stressed tha.
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iiow much are estimated student loan payments for ?
*FSU?
The next set of figures depict costs for a student loan
if you borrowed $14,692, the estimated average net
price for a four year degree.
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Background visual courtesy OF terfaktab.blogspot.com