College students might feel somewhat relieved to be in school, avoiding the economic troubles the country is facing, but most students will graduate with a significant amount of debt to pay off because of student loans.
The average tuition at Ohio State is $5,600 for in-state students and more than $14,000 for out-of-state students. About half of all students at OSU have taken out loans to aid in financing their education.
“I have a few hundred in student loans this quarter,” said Omega Bosworth, a sophomore in nursing. Despite the fact that her parents are helping to pay for school, she said she would owe about $5,000 after graduation.
“The total number of students and parents who borrow is 22,000 at all campuses,” said Tally Hart, director of the Office of Student Financial Aid, said.
The average amount borrowed by the total student population is $7,500 a year, but of those students who borrow the average is $15,000.
The loan that has the highest volume is the Stafford Loan, with a volume of over $150 million by all OSU students, including graduate and regional campus students, Hart said.
The interest rate is at an all-time low of 5 percent, making the Stafford Loan the most affordable.
“If a student receives an unsubsidized loan, the interest accrues immediately,” Hart said.
Repayments begin on an unsubsidized loan six months after a student finishes schooling.
“The Perkins Loan was always more popular, but right now with a low interest rate, the Stafford Loan is the highest in demand,” Hart said. “Our job is to get the lowest interest rate for each student.”
The PLUS Loan, an unsubsidized loan, is growing in popularity as well. It is a loan taken out by parents and is not based on any criteria or need.
“Parents can borrow the full cost of tuition and the payment begins 90 days after the first check is issued,” Hart said. “It’s calculated close to the cost of a second mortgage on a home for most parents.”
Loans from the university are fewer in number. About $800,000 is available this year with a 7 percent interest rate on the loans.
Another source of money is a grant, which is money used to fund a higher education that will not be paid back.
“Grants are solely based on financial need, and the criteria is set by the by the provider, the largest provider being the U.S. government,” Hart said.
The most common grant is the Pell Grant, with an average income of $50,000 or less earned by both parents for a student to qualify. However, exceptions are sometimes made to the formula.
Economic troubles within the state of Ohio have forced the Office of Student Financial Aid to cope.
“Part of the overall state cutbacks has left the office undergoing reduction in staff size,” Hart said. “All financial aid loan counselors are required to have degrees and some advanced degrees.”
Recently, the number of phone operators at financial aid dropped from 12 to six.
“I have lots of loans out,” said Matt Ostenkamp, a fifth-year senior in environmental science.
He said he would owe “probably $60,000 when I graduate.” He also expressed frustrations with the typically long waits in the Office of Financial Aid that many students experience.
Students who want to voice their opinions or concerns about service have several outlets to do so.
“If a student fills out a comment card, we try to answer all of them,” Hart said.
