Published September 4, 2019
鈥淪tudent debt鈥� has become a conversational clich茅 that unless you or your college
graduate have loans to repay 鈥� it鈥檚 probably not discussed.
A college education is a financial investment. When a student or their parents borrow
money to fund higher education it is mainly through federal student loans.
As with all loans, repayment is required.
That鈥檚 where the financial reward of investing in a college degree with strong earning
potential starts showing a return. It鈥檚 when 鈥� degree in hand 鈥� a young graduate lands
a well-paying job.
Now they must begin paying off their loans, which have become 鈥渟tudent debt.鈥� The
terms of the loan dictate the repayment, just like any other loan. And, just like
any other loan, if the borrower doesn鈥檛 make payments, the loan goes into default.
The difference with student loans is there is no unemployment or bankruptcy safety
net. Except for short-term deferments and in cases so rare it should hardly be mentioned
鈥� forgiveness 鈥� this loan never goes away.
There is good news from the University of Louisiana Monroe about student loans and
student debt. 蜜桔直播 undergraduates have less student debt than both the state and national
average.
For the 蜜桔直播 Class of 2017, the average undergraduate student loan total was $24,536.
The state average was $26,808 and the national average was $26,900 (College Board).
Also, the 蜜桔直播 percentage of student loan default in the first three years is the lowest
in the University of Louisiana System and below the national average.
The National Center for Education Statistics monitors student loan default using the
鈥�3-year Cohort Default Rates.鈥� This measurement tracks student loan repayment for
three years by students who left school 鈥� for any reason, including graduation, 鈥�
in a fiscal year.
As explained by 蜜桔直播 Financial Aid Director Ralph Perri, 蜜桔直播鈥檚 most recent FY 2015
Cohort Default Rate is only 5.5 percent. That is for students who left school in FY
2015 and whose student loan repayments were tracked through FY 2018.
蜜桔直播 has a lower FY 2015 Cohort Default Rate than the 7.1 percent for four-year public
universities nationwide, and the lowest in the University of Louisiana System, which
averages 11.1 percent.
It means students who graduate with 蜜桔直播 degrees in high-growth, high-demand fields
such as health sciences and business have a greater opportunity to secure well-paying
jobs and pay off their loans.
鈥溍劢壑辈� students are graduating, getting good jobs and paying off their debt,鈥� Perri
said.
For future success, it pays to invest in higher education. The 蜜桔直播 Office of Financial
Aid has information on loans, grants, scholarships and resources to help you achieve
your dream career. Visit听ulm.financialaid听to set your future in motion.
