Student loan debt hits all-time high, MU mirrors national trend

2 years 4 months 1 week ago Wednesday, May 09 2018 May 9, 2018 Wednesday, May 09, 2018 5:58:00 PM CDT May 09, 2018 in News
By: Nora Faris, KOMU 8 Reporter
loading

COLUMBIA - Benjamin Franklin once wrote, "An investment in knowledge pays the best interest." But students' investments in their college degrees are costing them interest - and a lot of it.

In the first quarter of 2018, US student loan debt hit $1.5 trillion—an all-time high. That's more than $4,000 for every person in the U.S.

The average college student graduating this spring will owe between $30,000 and $40,000.   

According to Nick Prewett, director of the MU Office of Financial Aid, MU graduates owe less in federal loans ($21,884) than the national average ($28,973). The monthly student loan payment for an MU graduate with $22,000 in debt factors to about $226 per month.

Prewett said MU issues between $170 million and $180 million in loans to students each year, but the figure has been increasing.

"As state funding and support has declined, there's an increased burden on students," Prewett said. "We've gradually seen our student loan volume on campus increase over the past few years."

Most students have a six-month grace period after graduation before they have to start paying on their student loans.

Prewett said MU cautions students to take out no more in loans than they expect to make their first year out of school. 

"We tell students not to borrow more than they're going to earn the first year after they graduate," Prewett said. "The average student here has a starting salary in the $40,000 range."

Nationally, one in six graduates has student loan debt that exceeds their income.

To manage student loan debt, the MU Office of Financial Aid encourages students to complete exit counseling at studentloans.gov to become familiar with the terms of their loans and their repayment options.

Enrolling in auto-pay is another way to take some of the hassle out of debt repayment. Loan payments are drawn automatically from the student's bank account, and they can receive a quarter-percent discount on their interest rate.

 

More News

Grid
List
(CNN) -- President Donald Trump hailed Supreme Court Justice Ruth Bader Ginsburg as a "brilliant mind" in a statement Friday... More >>
37 minutes ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 5:00:00 AM CDT September 19, 2020 in News
(CNN) -- Supreme Court Justice Ruth Bader Ginsburg died on Friday , the court announced. She was 87. Ginsburg... More >>
10 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:43:00 PM CDT September 18, 2020 in News
(CNN) -- For a father and son, a hug before the first game of football season is a special moment.... More >>
11 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:23:00 PM CDT September 18, 2020 in News
Week four of Friday Night Fever has arrived. Before you head out to your team's game or tune in to... More >>
11 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:56:00 PM CDT September 18, 2020 in Friday Night Fever
Games for high school football games will become available below. Final scores are in bold and home teams are on... More >>
11 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:44:00 PM CDT September 18, 2020 in Friday Night Fever
Welcome to Week 4 of Friday Night Fever! Our game of the week features the Marshall Owls taking on the... More >>
11 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:43:00 PM CDT September 18, 2020 in Friday Night Fever
STOVER - COVID-19 is affecting young and old alike in Morgan County. According to the Morgan County Health Center... More >>
12 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:03:00 PM CDT September 18, 2020 in News
COLUMBIA — Battle High School canceled its game set for Friday against the Hickman High School Kewpies. Battle announced... More >>
14 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 3:14:00 PM CDT September 18, 2020 in Sports
NEAR CRANE, Mo. (KY3) - The Missouri Water Patrol is investigating a deadly crash killing a father and son from... More >>
15 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
MISSOURI- As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. The... More >>
15 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
ST. LOUIS COUNTY, Mo. - As parents and student-athletes continue to protest the ban on some youth sports games... More >>
16 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 1:27:00 PM CDT September 18, 2020 in News
JEFFERSON CITY (AP) - A 39-year-old Missouri man accused of threatening to shoot people at a Walmart has been sentenced... More >>
16 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 12:43:05 PM CDT September 18, 2020 in News
COLUMBIA - Columbia Police officers are investigating two separate shots fired reports in west and south Columbia from Thursday evening.... More >>
18 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 11:26:00 AM CDT September 18, 2020 in News
COLUMBIA- UPDATE 3 p.m.: The Columbia Board of Education met in a closed session with its attorney regarding the field... More >>
18 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 10:53:00 AM CDT September 18, 2020 in News
LANCASTER COUNTY, PA ( WPMT ) -- "It was really, really hard and scary," said James Stafford, a veteran. ... More >>
20 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 8:52:00 AM CDT September 18, 2020 in A Brighter Tomorrow
(CNN) -- A firefighter has been killed in the El Dorado Fire, the blaze sparked this month by a botched... More >>
21 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 8:17:00 AM CDT September 18, 2020 in News
(CNN) -- The Commerce Department plans to restrict access to TikTok and WeChat on Sunday as the Trump administration's executive... More >>
21 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 7:56:00 AM CDT September 18, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. Previous coverage: ... More >>
21 hours ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 7:49:00 AM CDT September 18, 2020 in News
Columbia, MO
Broken Clouds 50°
6am 50°
7am 48°
8am 50°
9am 54°