Recent local, statewide and national news coverage has highlighted the pressing need to retire the exorbitant college debt that is weighing heavily on so many college graduates. In Missouri alone, 900,000 owe a total of more than $24 billion in federal student loans. While solutions being proposed range from legislation that would provide refinancing options for graduates with student loan debt, to linking their employer’s retirement contributions to their millennial employees’ efforts to pay down their college debt, more needs to be done to help those interested in going to college to earn their degrees with the least possible debt in the first place. To help navigate this issue, WGU Missouri offers the following tips on weighing all the options before borrowing:
• Avoid borrowing the maximum allowable amount. Adult learners are allowed to borrow at much higher thresholds than traditional college students. Because many of these adult students borrow the maximum allowable amount each term, they are incurring debt that is, often, several times higher than the cost of tuition, fees and books.
• Check for available scholarships or tuition assistance from employers. Often, universities offer great financial aid packages that students are unaware of. By completing the Free Application for Federal Student Aid (FAFSA) and searching for school specific scholarships, debt can be reduced or eliminated. In addition, many employers now offer incentives or tuition assistance to help employees further their education.
• Earn a degree faster with transfer credits or relevant work experience. Innovative competency-based learning models, like the one used by WGU, allow students to advance as soon as they demonstrate mastery of course materials. This allows students to accelerate faster than they would in traditional university programs.
• Research tuition increase rates before choosing an institution. Tuition rates and fees are constantly increasing at universities across the nation. Plan to research tuition increase history before choosing a school. In addition, textbooks and travel can increase your costs, so remember to consider total expenses rather than just the price of tuition when making your decision.
• Research local job markets and salary data to determine what amount it makes sense to borrow given future earnings potential. It is important for students to educate themselves on local job markets and typical starting salaries as well as mid-range salaries of the job they intend to seek after graduation. This information is available for free from sites like Glassdoor (http://www.glassdoor.com/).
• Turn student loans into an investment for a brighter future. Student debt can be a smart choice if it helps students complete their degrees faster and shortens the time they are unemployed. With diligence and research, students can find a way to an affordable education and ultimately a higher-quality of life.
“Today’s students need more information and resources for making informed higher education decisions. WGU prides itself on the support that it gives its students regarding finances and student loans,” said Angie Besendorfer, Chancellor of WGU Missouri. “WGU sends student total debt balance letters with advice on suggested loan amounts depending on their needs. This is one of the many ways WGU is helping combat the national college debt problem.”
About WGU Missouri
WGU Missouri is a competency-based, online university created to expand access to higher education for Missouri residents. The university offers more than 50 undergraduate and graduate degree programs in the high-demand fields of business, K-12 teacher education, information technology, and health professions, including nursing. WGU Missouri employs full-time faculty who serve as mentors, working one-on-one with students, offering guidance, support, and individualized instruction.
Established by the state through a partnership with nationally recognized Western Governors University (WGU), WGU Missouri is open to all qualified Missouri residents. Through WGU, all WGU Missouri programs are accredited, and the university is nonprofit and self-sustaining on flat-rate tuition of about $6,000 per year for most programs. More information is available at missouri.wgu.edu or by calling 855.948.8493.
For more information, contact:
Pamela Powell
The Hauser Group
314.436.9090