Inflating tuition around the country is forcing students to take loans that some are having trouble paying back. The University of Wyoming, however, is still doing comparatively better than other schools in the U.S.
Starting a career right out of college is not always an option for college graduates, but the debt does not go away, and this is creating a student loan bubble.
“There is fear that students are borrowing way too much money and not getting that return on their investment,” said Joanna Carter, Director of Financial Aid at UW.
Carter said UW went down in the total amount of money students have borrowed last year.
“We did increase in the amount of Pell Grant and we held about the same in scholarship dollars,” said Carter.
Last year, tuition at UW increased two percent for residents and 4.5 percent for non-residents. In the upcoming year, tuition will increase at five percent across the board.
“A year ago Business Week published an article that said UW is 5th in the nation for return on investment for college education,” Carter said.
UW is not typical of most colleges as it is on the lower end of the spectrum in terms of tuition and fees compared to for-profit colleges that might charge upwards of $30,000 for one year of tuition.
The problem with the student loan bubble arises when students are unable to get a job in the field they have been training in, or when they drop out. Students still have to pay their loans back whether or not their education helps them get a job.
“The problem exists when a student enrolls, they take on student debt and they don’t finish their degree,” said Carter.
“I think it’s outrageous that tuition has increased higher than any other commodity, well above any other inflation rate,” said Kyle Fisher, a senior accounting student.
“There are a lot of people who will die knowing they will pass debt onto their children. It is sad that a lot of students will have to live like this.”
“Students come in and pick their major where they have talent and aptitude,” said Carter. “I think they also have to be practical – can they get a job in this field when they graduate?”
She also said it helps to keep borrowing down as much as possible and to avoid extravagant spending.
Both Fisher and Carter emphasized that people need to get practical degrees they can make money with.
“They need to realistically explain majors to students,” Fisher said. “Some of the fields that students choose, unless they are the elite, they will not make enough money for it to be worthwhile.”
“We are in a good scenario,” said Carter. “Our students are wise about their borrowing and good about graduating,”
Although there are always anomalies, Carter said, UW students are in better shape than most of the country.
