Venus Munguia, a senior psychology major at Cal State Long Beach, intended on borrowing $3,500 in student loans but now owes $9,000, and may find herself taking out another loan to pay for summer school.
Munguia interns 24 hours a week at Toyota and works 12 to 13 hours a week at Daniel’s Jewelers, aside from being a full-time student. Munguia plans to start saving money soon to pay for her loans.
“Hopefully next year I will be in a better position financially,” she said. “I’m not trying to make little payments.”
According to the most recent data compiled by collegeportrait.org, during the 2008-09 academic year, 43 percent of CSULB students who started out as freshmen assumed loans. The average amount borrowed by students was $14,142 — almost $10,000 below the national average.
With the upcoming tuition increase, more students might find themselves borrowing from Uncle Sam.
Nick Valdivia, director of financial aid at CSULB, said he has seen more students willing to borrow but he said that isn’t necessarily a bad thing.
“Sometimes it is the smart move to borrow,” he said. “Borrow now, pay later. You get better grades and get out of school faster.”
The tuition increases have given students like Kathryn Volk, a senior communication studies major, a reason to finish school faster.
“I don’t want to stay in school any longer,” she said. “I can’t afford to keep taking out loans.”
The current unemployment rate for California fell from 11.9 percent in September 2011 to 11.7 percent in October, according to the U.S. Department of Labor.
Volk said the thought of being able to find a job after college to pay for student loans terrifies her.
She owes $19,000 in student loans and is considering joining AmeriCorps once she graduates in spring so that she can get her loans deferred for a longer period.
“I hope the economy gets better by the time I’m done with AmeriCorps,” she said.
After graduation, students have six months to start paying off their Federal Stafford Loans. On the other hand, the Federal Perkins Loans give students a nine-month grace period.
Liberal arts major Simone White said she might have a harder time finding a K-8 teaching position in order to pay for her loans.
“Eventually there will be a big need [for teachers,] but not when I graduate,” White said.
Kirsten Sherman, a freshman liberal studies major, pays for school on her own. For extra school-related expenses like books, Sherman relies on her grandmother.
She has not considered taking out loans because she has enough money set aside to cover school, but tuition increases are jeopardizing her savings — the Cal State University just raised tuition for fall 2012 by about $500.
“When they did the tuition raise, I had to pay the extra $200,” Sherman said. “I make enough money to pay for [the increase] but not enough for anything else. I’m taking more units to finish faster.”
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