Student loan applications increase by 50 percent, cause delays

The Scholarship and Financial Aid office claims it was keeping up with processing applications for financial aid fairly well until August. However, some students say they have been waiting all summer for their loans to go through.

Denise Spudic, a graduate assistant for communication studies, said she filled out her student loan forms in mid-July, requesting the maximum amount of subsidized loans.

"I called [the Bursar's office] persistently for three weeks, starting August 12," she said. "I noticed my graduate fee remission wasn't going through."

Student loans were applied to her account a day before the extended deadline of September 3. Spudic was not the only student with these kinds of concerns.

Director of Scholarship and Financial Aid Bob Zellers said there was a large increase in applications for student loans this year. Compared to last year, he said, there has been a 50 percent increase in number of applications, given the national and state economy.

"We weren't expecting that kind of increase," he said. "We expected 20 or 30 percent, but nothing like this."

Zellers said they were keeping up with processing the loans fairly well, but in August there was a huge increase in applications. About 60 percent of the loan applications came in at the beginning of August, Zellers said.

He also noted another complication: sometimes students don't realize that award letters simply denote eligibility for a loan, and after receiving the award letter, students need to turn in request forms for financial aid.

Processing student loans should take about five business days, Zellers said. However, the increased number of applications made processing and awarding grants take longer than many students might like.

Financial Aid Advisor Janet Trimble said she believes the credit crisis has a lot to do with more students asking for financial aid.

"A large part of what we're dealing with is credit companies cracking down on who can co-sign on private loans," she said. "There's been a huge amount of job loss, and so we're seeing more students and parents taking out loans."


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Recent study shows student borrowing is on the rise

According to recent information published the by College Board on their website, the average amount of debt acquired by students during their college careers has increased, following an upward trend that has been consistent for several decades.

"I guess I am afraid of debt, but it's sort of necessary to get your foot in the door" said Angela Dela Cruz, sophomore. Dela Cruz estimated that she received a total of around $20,000 this year including grants and loans.

An annual census by the U.S. Government, known as the National Postsecondary Student Aid Study (NPSAS), puts together a highly comprehensive collection of college financial statistics and data.

The NPSAS reports on everything from average tuition costs to the amounts of financial aid received by students, and proves to be a crucial resource when looking at the trends of the collegiate world.

The most apparent of these trends is the rise in student borrowing, and consequently, student debt after graduation.

"Between 2003-2004 and 2007-2008, debt levels increased rapidly for students in the for-profit sector and for all of those earning certificates and two-year degrees," reported a College Board policy brief regarding the NPSAS. "However, the increase was relatively small for bachelor's degree recipients in public and private four-year colleges."

Over the last four years, Public four-year schools, like SSU saw a five percent increase in median student loan debt, which is relatively low compared to the astounding 30 percent increase felt by students in for-profit institutions.

While students in the public four-year system can be thankful they are seeing the low-end of the debt increase, the amounts being borrowed continue to rise, and have been doing so for quite some time.

A breakdown of some of the data released by the NPSAS puts the last ten years into perspective, after adjusting for inflation to match the value of today's dollar.

According to data published on the College Board's website, the average amount borrowed in 1997 through federal Stafford loans was around $17,238 per borrower, with a total of about ten million borrowers.


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