When it comes to student loan debt, nearly all college-educated millennials (or his or her parents) have a story. But as college costs rise faster than inflation, there are few who earn a college education without also signing up for years of debt. In fact, New Hampshire ranks first in the country for the average debt per student, while Vermont is 22nd.
When it came down to it, the choice I made at 17 to take on student loan debt was a simple one, best described by my closest friend: “I just wanted to go to college and I would have done anything to get there.”
So it is with the multitude of students — and parents — who each year borrow millions in pursuit of higher education. Student loans have made higher education more accessible. But loans have also saddled many college graduates with debt loads so burdensome that their lives are changed for many years.
In this edition of Valley Parents, we focus on how people pay for post-secondary education — and options outside of the traditional four-year route, such as community college, entering the workforce and the military. The goal isn’t to try to find a solution to the student-debt crisis, but to provide avenues for parents and students to educate themselves before making what is — in more ways than one — a life-changing decision.
Even though I knew debt awaited me once I graduated, the reality did not sink in until I saw the total that, compounded with interest, was more than my salary right out of college. The amount is modest compared with that of other graduates, but when figuring in the non-negotiable 6.8 percent interest rates and an income-based repayment plan, the total over the next decades is daunting.
“I wish there was a seminar for high school students to discuss student loans,” said my best friend, who is in the third year of a counseling psychology doctoral program and has racked up about $180,000 in debt. “Yes, you get the entrance and exit counseling, but does anyone actually read thoroughly through it? It’s like reading terms and conditions on accepting the updates on your computer or iTunes account.”
And therein lies an issue that came up in nearly every interview I and Valley Parents correspondent Jaimie Seaton conducted for this edition: Becoming educated about post-secondary options, loans and job possibilities is paramount for parents and students alike. The loan process doesn’t — and shouldn’t — be cloaked in mystery when there are resources available to make it simpler.
“The biggest thing I learned was that I don’t have to do it alone and there are a lot of resources out there,” Seaton said. “I don’t need to be so overwhelmed.”
