Students are not always promised a job after graduation, but for most students, debt or loan payments are guaranteed.
Forty-nine percent of Ohio University students who graduated between July 1, 2002, and June 30, 2003, had an average loan debt of $16,307, said Soni Williams, OU director of student financial aid.
Williams said for the 2001-02 school year, 57 percent of students borrowed an average of $15,285. But while it seems like costs are increasing, Williams said, students actually have more options for repaying their loans than before.
It's probably better off these days than in the past because there are a lot of different repayment options
instead of say 12 years ago there was only one option. Students can pick what repayment system works for them
she said.
Lenders from both the government and private sector work with students who cannot afford to repay their loans. Different repayment options are available, such as deferment of loans or reduced payments, Williams said.
They really do try to work with students because they don't want you to go into default
the same as you don't want to go into default
she said.
Students can default when they do not pay off debts, often ruining their credit ratings.
The OU financial aid office advises students about borrowing money from the start.
We try from the get-go of advising students not to take out more debt than they need
Williams said. Sometimes I know it's difficult because it's computerized and students take out the maximum amount offered when they don't need it
so we advise from the start.
OU senior Michelle Soski, a German and international studies major, has both private and government loans. She is concerned about finding a job after graduation and repaying her debt.
I have to make a decision to work or go back to school. I can either find a job or go back to school
because then I can defer my loans
and take out more
Soski said.
In addition to loan repayment, students frequently find themselves with credit card debt hanging over them.
Students have credit card problems
