Student loans are a struggle in the lives of millions of Americans, and many are left wondering if a loan was the best option. A new study conducted by NerdWallet found that 30% of borrowers feel their degree wasn’t worth it for the cost.
The Tropolitan conducted its own study utilizing social media polls for the purposes of this article and found that about half of the students at Troy have student loans. 28% of students polled said student loans are worth it, 30% said they aren’t and 42% are undecided.
“I feel like loans aren’t worth it, due to personal experience,” said Toreion Leeper, a sophomore from Jamestown, New York majoring in exercise science. “Paying back double the amount of what was taken out is wild to me, on top of having to make monthly payments while taking classes.”
Leeper said she feels discouraged and overwhelmed.
“My biggest issue has been the monthly payments,” she added. “With so many responsibilities already, it’s difficult to stay on top of them, and it’s even more discouraging knowing my credit is at risk when I’m late or unable to make payments.”
Leeper continued by saying she wishes students had better knowledge about loans before committing to one.
“I feel as young adults, we should be given more clarity about loans and how they work,” Leeper said. “I’m a first-generation student from a family that wasn’t given the finances for me to go to school, which is the case for many other students.
“A lot of us have no choice.”
When asking alumni about their student loan experience, the overwhelming response was that loans should only be used when it’s the only option.
“I was in a situation that if I wanted to go to college, I had to have student loans,” said Olivia Starling, a 1999 Troy alumna. “If I had to do it over again, I would take them out again.
“I was not irresponsible in the amount I took out. The loans paid for school, housing and a little leftover for food, etc.”
Starling said she consolidated her loans, unaware that the company had frontloaded an additional $30,000 in interest, meaning she was locked in a 20-year, $60,000 contract.
“I was so mad,” Starling said. “I was mad at myself for not reading the fine print and mad at the company for taking absolute advantage of a recent graduate.
“Later on in life I found out that I had other friends that also fell victim to this exact company. If you ask me, it is criminal to frontload that much interest. I didn’t touch the principal of my loans for 10 years.”
While Starling was able to pay off her loans, others are not so fortunate.
“I graduated in 2006,” said Beth Ashworth, a CACC alumna. “I honestly have no idea how much longer I have on my student loan.
“My loan has been sold to six different companies.”
Others share similar sentiments, saying they had to give up on dreams to avoid more debt.
“I graduated with over $15k of student loan debt,” said Angie Brabham, a 2017 Troy alumna.
“I chose not to go back to get my masters – would have been $20,000 – because it would have meant going back into debt.”
Some alumni are just as undecided about their loans as current students.
“It’s a question that requires a balanced cost-benefit analysis, with valid arguments on both sides,” said Jeremy Cross, a 2017 alumnus of the University of North Georgia, and current Field Marketing Specialist for Troy’s Sodexo. “Personally, I credit my degree as a stepping-stone to my current role as a Marketing Manager.
“While it's impossible to know for certain, I believe having a degree in the field likely played a role in my hiring. Beyond academics, college taught me independence, how to create healthy habits and helped me build connections with like-minded people.”
Cross said he now has a $360 monthly loan payment, most of which is only interest. Cross feels the question of student loans deserves deeper scrutiny. He also feels college does not inherently make a person better or more fit for a job.
Many adults believe that student loans are predatory.
“The predatory practices of some loan companies, coupled with the misleading promise of loan consolidation—where borrowers are shifted to private loans and may lose eligibility for federal programs like Biden’s student loan forgiveness—can leave prospective students with a bitter experience,” Cross said.
Brabham agreed.
“Many young adults don't know what they want to do at 18 years old,” Brabham said. “Having them sign up for loans they also don't understand is a scam to me.”
Some said the debt was worth it, for the experience.
“Aside from potential salaries, college – especially university – is an experience that you will not get anywhere else in life,” said Kaylie Denny, a two-time Troy alumna. “I wouldn’t trade the community I was part of, the friendships I made or the life skills I gained for any of my student debt.”
However, Denny also said from a financial standpoint, she would not recommend student loans. She pointed out most degrees do not result in a profitable job, especially when students also need to pay for certifications and licensing.
Are student loans worth it? The evidence appears to be inconclusive. Each student has different needs. However, everyone agreed that young adults should be better informed about student loans before signing on one.
As a student, Leeper shared one final sentiment.
“I wish I could go back in time and go over the financial aspect,” Leeper said. “You don’t realize how difficult school is, financially speaking, until you start school, and it’s in your hands.”
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