News Articles

Study: Federal loans fail to cover college expenses
By Claudia Adrien
Independent Florida Alligator

September 23, 2003

GAINESVILLE, Fla. - More than 80 percent of college students nationwide insist the government inadequately funds student loans, according to a new study.

The Coalition for Better Student Loans found that federal low-interest loan programs do not sufficiently cover college expenses, forcing students to work more hours and incur high-interest debt. Some students are forced to leave school as a result.

The average student carries about $17,000 in debt after graduation, the maximum amount the government allots in loans, the study showed.

The coalition advocates the average loan amount be increased to $30,000 over a four-year period, but some students are not comfortable with that proposal.

"That's just too much money in the hands of a college student," said senior Kathleen Jean.

Students would cover their necessary expenses and use the rest of the money frivolously, contributing to their personal debt, "giving you enough rope to hang yourself," she said.

Jean said she only uses loans to cover her summer expenses.

Junior Rene Nortman couldn't disagree more.

"The government isn't giving nearly enough," she said.

Nortman, an out-of-state student, said she needs loans to cover everything because her parents don't financially support her.

"I already have $20,000 in loan debt."

State budget shortfalls and a failing stock market have forced universities to raise tuition, said Jim Boyle, president of College Parents for America.

But, the government hasn't increased funding for Stafford Loans and other federal loans in proportion with tuition hikes, he said

"People need more loan money," Boyle said.

Boyle's organization, among several others, joined the coalition to lobby Congress for increased federal student loan funding.

"The laws haven't been changed since 1992," he said.