With a turbulent economy and rising costs of living, students and parents are worrying about the ever-increasing cost of attending college.
“I’ve used financial aid but this is the first year I’ve taken out a loan because I’m living on my own,” said Doris Han, a junior liberal studies major. “I think they give enough money for school but not for expenses, especially with prices going up.”
Han uses student loans and financial aid to pay for her college expenses, including tuition and housing. “I take $5,000 loans per semester. So I know I spend at least $10,000 a year, even with financial aid,” Han said.
Considering the many different ways of paying for tuition and room and board, Gallup, Inc. and Sallie Mae teamed up to conduct a study on how, and how much, parents and students are paying for higher education.
The national study found families with college students using varying methods to pay for college.
The report also shows that more students are seeking out financial aid than in previous years. There was a 16 percent increase in the amount of students applying for financial aid since last year — that means 8.9 million students filed for aid in 2008 alone.
According to students surveyed, 79 percent of student borrowing is due to insufficient funds available to them. A overwhelming 77 percent of parents agree that the number one reason for student, rather than parental, borrowing is the idea that the student should take responsibility for their own tuition costs.
According to the study, the average annual cost for attending a four-year public university is $16,640, including tuition, room and board. A CSULB student can expect to pay $12,300, on average, for tuition, room and board.
The Gallup study found that the expected average repayment on a loan is $200 per month. One-quarter of students expect to pay less than $100 per month, while another quarter expects to pay $400 per month, the study found.
Of all participants in the Gallup, Inc. survey, three-quarters of parents and students think that a college education is worth the money spent and 87 percent of students said they would rather borrow the money than not attend college at all.
“I would definitely take out a loan if my parents did not pay, I would have to,” said Bailey Kordic, a senior marketing major.
Kordic lives at home like many students do in order to cut the cost of living.
“I live at home right now, I commute,” said Courtney Edwards, a junior liberal studies major. “I’m staying at home as long as I can, bills are expensive.”
Other students are feeling the difficulties in paying for housing if not living at home, such as Han. “I took out a loan this year but it wasn’t for tuition it was for housing,” Han said.