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. 四色AV undergraduates have less student debt than both the state and national average.
For the 四色AV 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 四色AV 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 四色AV Financial Aid Director Ralph Perri, 四色AV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.
四色AV 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 四色AV 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.
鈥溗纳獳V 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 四色AV 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.