2008 Woodie Awards
Life after loans
Erika Green
Issue date: 9/15/05 Section: Lifestyles and Health
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Most students are either aspiring to begin a college career, or trying to finish their college education. But what happens if the money is not available? Loans are the next best thing to remedy this dilemma. Although this is not always the best option, many students continue to seek refuge in loans. Some even get loan happy, after realizing the number of dollars that can be accumulated from overpayment checks that are stuffed with loan money.
Although overpayment checks present students with numerous monetary options, loans that granted these checks present these same students with another issue, debt (not to exclude students that take out loans but do not receive overpayment checks.) These students will also come face to face with the debt issue. This is because loans, especially education loans, must be repaid with interest.
According to 2003-2004 National Postsecondary Student Aid Study two-thirds of undergraduate students graduate with some debt, and average federal student loan debt among graduating seniors is $19, 202. When one includes PLUS loans in the total, the average cumulative debt incurred is $21, 814. Furthermore, FinAid.com states that the interest rate on the Stafford Loan is 5.30 percent and the PLUS loan is 6.19 percent. Interest rates are expected to increase by a further 1.5 percent to 2.0 percent on July 1, 2006.
With all this said, tuition is still rising, campus-housing rent is rising, and gas definitely cost an arm and a leg.
So what's a student to do? Be more responsible! "If you're responsible, you will pay back loans with the overpayment. Unfortunately, many students shop with their overpayment checks," stated Senior Natashia Octave. Many students splurge on non-necessities with overpayment checks, but many see loans as just an aid to paying for school and debt is just something that will come with it. Senior Lee 'Smurf' Sumlin said, " We do not have jobs, yet the economy gives us expenses like we are in the real world making real world money. Loans just help."
College is expensive and loans do assist in deferring the cost. However, check the interest rates because too many African Americans are going in debt because of LOANS. Remember, be responsible now with overpayment checks and you will not see the wrath of debt later.
Although overpayment checks present students with numerous monetary options, loans that granted these checks present these same students with another issue, debt (not to exclude students that take out loans but do not receive overpayment checks.) These students will also come face to face with the debt issue. This is because loans, especially education loans, must be repaid with interest.
According to 2003-2004 National Postsecondary Student Aid Study two-thirds of undergraduate students graduate with some debt, and average federal student loan debt among graduating seniors is $19, 202. When one includes PLUS loans in the total, the average cumulative debt incurred is $21, 814. Furthermore, FinAid.com states that the interest rate on the Stafford Loan is 5.30 percent and the PLUS loan is 6.19 percent. Interest rates are expected to increase by a further 1.5 percent to 2.0 percent on July 1, 2006.
With all this said, tuition is still rising, campus-housing rent is rising, and gas definitely cost an arm and a leg.
So what's a student to do? Be more responsible! "If you're responsible, you will pay back loans with the overpayment. Unfortunately, many students shop with their overpayment checks," stated Senior Natashia Octave. Many students splurge on non-necessities with overpayment checks, but many see loans as just an aid to paying for school and debt is just something that will come with it. Senior Lee 'Smurf' Sumlin said, " We do not have jobs, yet the economy gives us expenses like we are in the real world making real world money. Loans just help."
College is expensive and loans do assist in deferring the cost. However, check the interest rates because too many African Americans are going in debt because of LOANS. Remember, be responsible now with overpayment checks and you will not see the wrath of debt later.
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