By: Megan Lehew, David Carter, Alissa Mattis, and Ethan Vandeck
What's something that many college graduates have in common? Student debt!
Student loan debt is a growing issue among college graduates, and has become an increasingly large financial burden for graduates to manage. According to The Institute for College Access and Success, the Class of 2016 average debt for the state of Maryland was $27,455, and the national average for the Class of 2016 is $37,172, according to Student Loan Hero.
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Student loan debt currently outpaces debt from both auto loans and credit cards, and is second in sheer magnitude only to mortgage debt nationally. In 2017, total student loan debt topped $1.31 trillion, and there are approximately 44.2 million borrowers throughout the U.S. In order to pay back the loans some students have to work two to three jobs upon graduation. In addition to multiple jobs, many of them are also choosing to move back in with their parents to save money. With the student loan debt on the rise, it’s important for students to consider schools that are affordable. Frostburg State University is one of the most affordable public colleges, with an average public debt per student of only $25,347 - down $2,100 from the state average, and down almost $12,000 from the national average.
LendEDU, a website started by Nate Matherson and Matt Lenhard - who are also student loan borrowers and whose aim is to provide financial literacy as well as loan refinance and consolidation options - has Frostburg ranked as #147 out of the 200 public schools with the lowest amount of debt per student. Although this is a 6.24% increase from 2015, Frostburg is still rated as 14th for student debt for the state of Maryland, which puts Frostburg as a relatively affordable, low-debt school.
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| Pullen Hall, location of the FSU Financial Aid Office |
In fact, compared to other Maryland public schools such as University of Maryland (UMD), Frostburg is an affordable alternative for most students. The Institute for College Access and Success shows that students at UMD - College Park typically graduate with approximately $27,559 worth of debt, and students at Morgan State University graduate with almost $37,000 worth of debt. This difference may be at least partly due to the fact that FSU awarded a little over half (57%) of their full-time, undergraduate students some form of need-based aid in the 2016 - 2017 academic year, thus lowering the total amount that students needed to borrow in student loans. This need-based aid, such as grants, helps to alleviate the need of taking on student debt, which will then alleviate the overall burden of debt upon graduation. It is important that students understand the importance of filing their FAFSA on time in order to take advantage of need-based aid, especially if they would be considered in need.
It’s also important to remember that Frostburg offers the same programs that would be found on larger, more expensive college campuses. For example: the College of Business is AACSB-accredited. This accreditation is only currently held by 796 business schools across the world, including Georgetown ($26,000+ per academic year) and Harvard ($45,000+ per academic year). And within FSU’s College of Business, the online Master’s of Business Administration (MBA) program was ranked among the top five most affordable online MBAs in the nation for 2016 according to The Best Master’s Degrees. That students have access to this level of education for around $10,000 per academic year (in-state) is a wonderful opportunity, and one that makes any financial burden feel a little lighter. In fact, FSU’s combination of excellence in education and an affordable price tag have earned them the title of one of MONEY magazine's Best Value Colleges for 2017.
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| Kelli Kidwell, Financial Aid Counselor at FSU |
Unfortunately, no matter how excellent the value of the school is, student loans are still almost inevitable for most college students. Overall for the state of Maryland, approximately 55% of graduates are currently still saddled with debt. According to Kelli Kidwell, FSU Financial Aid Counselor, approximately 93% of FSU students are paying back student loans as of 2017. Although this statistic may seem alarming, these students are being well-educated by FSU’s Financial Aid Office on their entire borrowing process, from first taking out the loans to paying them back upon graduation.
When a student takes out their very first federal student loan, they must go through an entrance interview, conducted online. “This covers the difference between the types of loans, the interest rate, how interest is calculated, and examples of estimated payments with every payment plan the Dept. of Ed. offers,” says Kelli Kidwell. The purpose of these interviews is to educate students on the responsibility of their student loans, as well as provide them with enough information for them to make informed decisions about taking the loan. The student will also receive information from their loan servicer with details about their specific loan, including interest rate and amount.
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| A student waits to be helped at the FSU Financial Aid Office, inside of Pullen Hall |
The knowledge doesn’t stop there, though. The Financial Aid Office also offers financial literacy talks throughout the semester to Freshman Orientation classes, per the professor’s request, as well as a multitude of resources both in their office and on the FSU website. Among these resources is the Debt Management page, which offers students information pertaining to student loan and credit card debt. This page gives students links to sites such as Cash Course, which provides free online financial education courses, as well as information about accessing their free credit report. There is also a link to information about repayment options, and Kelli Kidwell says that the Financial Aid Office also offers pamphlets about repayment and deferment options.
Finally, once a student borrower is in their final semester of college, they must go through an exit interview - also conducted online. This interview once again goes over the loan information, repayment options, and any other pertinent information the student may need. The purpose of this interview is to ensure that the student borrower is well-informed and able to make good financial choices regarding their loans upon graduation.
Frostburg State University continues to be an affordable option for higher education. They provide a top-notch education at a relatively low price tag, and they continue to do a fantastic job in educating their students on the importance and responsibility of borrowing federal funds for student loans.
For more information about student loans and repayment options, check out A Brief Glance at Student Loan Repayment Options.
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