Student Debt Affects Student Choice

Student debt is a burden many bear, and high school students often don’t know the lasting impact a $60,000 debt for one year of college can have on the future.

Families on Long Island have struggled for years with student debt issues. Rising costs of an undergraduate education have made it more difficult for students to pay off loans, leaving them swimming in debt and immobilizing their futures.

Ms. Lucy Eschbach, guidance counselor, said that students should talk to their guidance counselors about managing their college finances.

“Should money come into your decision-making process? 100 percent yes,” Ms. Eschbach said. “It’s definitely a big part of the decision-making process.”

She does advise, however, that students sit down to discuss money and finances with their parents before thinking about making commitments to colleges that may be out of their reach.

“The financial decision is really a family decision because it’s what they value, what they’ve saved, and what they haven’t,” Ms. Eschbach said. “I have seen different results for different children [in the same family], too. It depends on the program they’re going to, if they are going to be immediately employable or not, if they are going for graduate school or all the way to get their doctorate, because that’s a lot of schooling and money.”

Ms. Eschbach strongly emphasized the need to discuss debt and finances as a family to make sure everyone is on the same page about being prepared for future debt or making the decision to avoid debt.

Photo courtesy of Prudential Newsroom

Although some may think it impossible to go to college and come out after four years debt free, it is a viable option for some students.

Senior Julia Petreczky said, “That is the reason why I’m going to Stony Brook. I am basically graduating debt free, especially since I want to go to grad school.”

The tuition at Stony Brook University is $6,870 for in-state residents and $24,540 for out- of-state and international attendees. That doesn’t take into account extra fees, room and board, the meal plan, books, and transportation and personal expenses. The grand total tuition for one year of in-state attendance with all expenses applied and no scholarships is $26,091, and the out-of-state, with all expenses applied and no scholarships, is $43,761.

Petreczky said her parents will be paying for her education at Stony Brook.

Senior Mahdi Rashidzada said, “Student debt was a big factor in which schools I picked.”

“I do know a fair amount about student debt as well as the cost of certain universities’ tuitions and room and board; however, I only recently learned how much more I would have to spend, such as food and textbooks,” Rashidzada said.

Rashidzada said that his parents are also “contributing a significant amount” to his college education.

“I’m mostly afraid of taking out loans because of how much interest can incur and how it will limit my future financial capabilities,” Rashidzada said.

When discussing how much she has actually thought about debt after college, Petreczky said, “I think about it 24-7. I’m more obsessive about it than my parents are.”

Debt of any kind can affect students’ futures; however, with careful planning, it is possible to avoid college debt.

“When we’re talking target, reach, and safety schools, your safe school(s) should be not only safe academically, but safe financially,” Ms. Eschbach said.

There are ways to combat student debt, or at least try to prepare for and avoid undergraduate debt, before it hits in college. Ms. Eschbach recommends keeping focused in high school, even in senior year.

“Take both [appeal and finances] into account. It’s not a good idea to prefer one over the other because both ultimately affect your future livelihood and financial status. Pay the right price for the quality of education that you are receiving.” -Mahdi Rashidzada

“Do very well in high school, so they [students] can maximize the merit-based money they get for scholarships,” Ms. Eschbach said. “Try to increase the amount of attention you pay to your grades because that can really pay off in the end, and reach out for scholarships.”

Ms. Eschbach advises students to “weigh out what’s important to you” when considering the appeal of a college over the finances available.

Petreczky said that she was looking at colleges on a basis of “pros and cons,” but she thinks that there should be a balance of intrigue and finances when choosing a college.

“I got lucky that my dream school gave me a lot of aid,” Petreczky said. “But for a lot of kids, it [finances and debt] is a big factor in the decision.”

However, for those who feel they just can’t stay away from their “dream school” and do choose attraction over finances, there are some considerations.

“One of the things I’ve heard financial advisers advise parents to help their teenagers understand, is to tell them, ‘You’re going to owe $60,000 or you’re going to owe $100,000.’ Those numbers don’t really mean anything because they’ve [students] never had $60,000 or $100,000 anyway. It’s better if you take those numbers and you break it down by a monthly payment,” Ms. Eschbach said.

She gave an example of how to compare debt after college with two drastically differently priced schools.

“If you go to School A, you have $200 a month that you have to pay back as soon as you graduate. If you go to School B, you have $2,000 to pay back every month–before you pay rent, before you pay for gas, before you buy clothes, before you eat lunch. It makes it much more realistic,” Ms. Eschbach said.

Rashidzada said, “I’m willing to go to a good college and pay more for it than a college that would give me a full ride but has a lower quality education.”

Petreczky had some advice for her fellow seniors on making a wise financial decision when choosing a college. “Don’t spend your money on undergrad,” she said. “Spend your money on your last degree—people will care about the graduate degree.”

Rashidzada disagrees. “Take both [appeal and finances] into account. It’s not a good idea to prefer one over the other because both ultimately affect your future livelihood and financial status. Pay the right price for the quality of education that you are receiving.”

Ms. Eschbach, however, agreed with Petreczky about saving the bulk of the money for graduate school.

“Things to consider would be: do you think you’re going to go on to graduate school? Because how much debt do you want to incur?,” Eschbach said. “If you know you’re going all the way there [grad school], you may say, ‘well, I’m not going to start right out of the gate with four years of loans’.”

Trying to plan how to pay off student debt can be tricky, especially before the future plays itself out.

“The financial decision is really a family decision because it’s what they value, what they’ve saved, and what they haven’t.” -Ms. Eschbach

Ms. Eschbach said that it can be quite hard to plan how to pay off college debt before you have it because many unexpected events can happen after graduating college that may add to or change the plans.

“It depends on what life brings you. Sometimes we can plan, but things happen. So you may plan but then all of a sudden you’re married, you’re starting a family, you’re buying a home, and now you’re taking on all that other debt,” Ms. Eschbach said. “Isn’t it nicer to not have any debt, and then you have the freedom to not make decisions on your future based on your past debt?”

In the end, she said, “it’s a personal decision,” but “what you are planning for the future,” should be taken into account.

 

 

Republished from Shoreham-Wading River’s print newspaper, The Wildcat Pause (April 2019 Issue).