News Headlines

WHSV Mobile Site >> News Headlines

Send Student Loans Cast Dark Shadow on Graduation

All fields are required

Back to Home

Student Loans Cast Dark Shadow on Graduation

Posted: 4:59 PM May 4, 2012
Reporter: Karen Campbell

Student Loans Cast Dark Shadow on Graduation

Student loan debt out-paced credit card debt for the first time last year.

Close to 70-percent of all undergraduates received some type of financial aid and in 2008, the average amount was $9,100.

The majority of those undergrads received aid from the federal government.

Hundreds of students are getting ready to graduate from James Madison University this weekend.

It may be an exciting time for grads and their families, but students have something else to worry about.

As hundreds of grads prepared to leave college with degree in hand, they have to start worrying about paying back student loans but those hefty loans are only part of the problem.

Finding a job is another issue these graduates will face.

Sasha Duran and Sara Rose Sommerstein are both receiving a degree in education.

"I have a lot of teacher friends now who are struggling and looking for a job. I'm just trying not to think about it negatively," said Duran.

Sommerstein said she was not picky about where she applied.

"I sent out about nine applications so far in both Richmond area and also Massachusetts, just trying everywhere," said Sommerstein.

Getting a job isn't the only thing they are worried about. Like many students, they want to attend grad school.

Student loan rates could double by this summer.

Sarah Favinger, another JMU graduate, said that could make it even harder for some students to attend grad school.

“I do think that interest rates growing is a concern for a lot of people because not everyone can make that happen, or get their undergrad and then their masters and make it work," said Favinger.

If student loan rates increase, Kelli Pierce, a JMU junior, said that will make her reconsider her plans to go to grad school.

"I'm really worried about not finding a high enough paying job to pay back my student loans," said Pierce.

So is college worth the financial headache?

"The education that I've received here is 100-percent important, in my opinion," said Favinger.

President Obama was in Virginia today promoting a bid to freeze the current interest rates on student loans.

The senate will vote on this on Tuesday.

Student loan debt likely to top a $1-trillion this year, and federal reserve estimates that 15-percent of U.S. population actively paying off loans.

A recent report by Associated Press said more than half of recent college grads are unemployment-employed or under-employed and that is making it harder to pay off student loans.