About 89 percent of the freshmen class of 2013-2014 received enough aid to cover half of their tuition at private universities, according to a study by the National Association of College and University Business Officers, but that other half can add up to a hefty bill after four years of college.
“The average student loan debt for a U.S. graduate of the Class of 2013 was $28,400, according to the Project on Student Debt,” said Deborah Figart of the School of Education, at The Richard Stockton College of New Jersey. “Each month, young adults are burdened with 25 percent to 30 percent or more of their net pay dedicated to student loan debt.”
Stanford University recently made a bold statement when they announced that any undergraduate admitted to the class of 2019 who comes from a family with an annual income below $125,000 won't have to pay tuition.
Students from families with incomes below $65,000 also will receive free room and board, and families earning up to about $225,000 also may qualify for financial assistance, especially if more than one family member is enrolled in college, according to the school. Tuition at Stanford runs $45,729 a year, and room and board is another $14,107.
“I've created a huge amount of debt over the past six years and I have at least two more years of college to get my Master's,” said Lacy Murdoch. “I am probably going to join the military because they've offered to pay back a substantial amount. I never thought I would be doing this, but with over $100,000 in loans to pay back I will do almost anything.”
Credit unions have taken note to the importance of college and graduating with a minimum amount of debt. They entered the private student loan consolidation market in late 2010 and as of September 2014, 666 credit unions, with a median asset size of roughly $144 million, reported offering students loans.
One such credit union, NuVision Federal Credit Union in Huntington Beach, CA., is taking the education of its community members seriously, and recently announced its annual 2015 NuVision Scholarship Program to support local students pursuing post-secondary education.
This Southern Californian credit union with $1.3 billion in assets has been providing scholarships since 2008 and this year, the NuVision Scholarship Program has significantly expanded to provide more money to more students across Los Angeles and Orange counties in response to the rising debt of college students.
NuVision is awarding ten $1,000 scholarships to students attending a four-year college or university (public or private), community college, or pursuing trade certification in a vocational or technical school. Eligibility requirements and application forms are available on the NuVision website, www.NuVisionFederal.org.
“Every year NuVision is honored to support an incredible group of hardworking local students with money for school, and this year we are especially excited as we have more than doubled the size of the NuVision Scholarship Program. This program is just one of many ways we show our commitment to the communities we serve,” said L.J. Tarman, vice president of marketing and public relations.
The total outstanding student loan debt in the U.S. has now surpassed $1.2 trillion. A September 2014 report by the credit bureau Experian found student loans in the U.S. had surged 84 percent since the Great Recession, with more than 40 million consumers having at least one student loan.
“My friends think I'm crazy for going into the military,” Murdoch said. “But really, what choice do I have?”
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