The Lowdown on Loans

According to College Board, in-state tuition increased between the 2005-06 academic year and the 2015-16 academic year at an average rate of 3.4% per year. For example, in 2005,  Institution X’s annual tuition for in-state residents was just shy of $5,000 and nearly $14,000 for out-of-state students. Then for the 2014-2015 academic year, tuition increased to over $10,000 for in-state residents and almost $26,000 for out-of-state students. And for the 2016-2017 academic year, Institution X has increased tuition again. The aforementioned tuition rates do not include books, room and board, and other miscellaneous costs associated with attending college. So, unless students and their families can cover rising college costs, they have to search for scholarships, grants, and/or loans to foot the bill. I did not have to take out student loans, however, for almost 10 years I have worked closely with students who have taken out federal and personal loans to fund their college education.

Many students may not have money or scholarships to support their college expenses, so I understand how individuals view loans as an educational investment. But, it is not until after graduation when many students begin to think about the length of time, hard work, and interest required to repay this investment. So, before making loans a premier financial aid option, please read advice from college graduates below and view the Faces Of The Student Debt Crisis In America video.

Student loans are the albatross of my life! They are always there when they could go into other funds. It could have been a car or something else. I should have made better decisions as an undergrad.-Thomas, University Director

Apply for as many scholarships as you can! What a wonderful way to finish up college and not be in debt. If you spend as much time applying for scholarships as you do on social media you should be all set! – Kyla, Counselor

If I could get scholarships and avoid student loans, then I definitely would. It’s nice to graduate and get a good job, but with loans to repay it takes a while to reap the financial benefits of that job. Do it [apply for scholarships] and avoid debt by any means necessary.-Denise, Doctoral Student

Being myopic in one’s thinking can be painfully detrimental to one’s future. There are many successful people in the world who who have great careers as lawyers, medical doctors, engineers, and so on who live under the crushing weight of college debt.-Andre, Engineer

Student loans are with you with or without a job, through illness, and can never be included in bankruptcy. -Alana, Educator

My purpose for writing this post is not to scare anyone, but to get incoming and current college students to think about their financial future. I am a  staunch proponent for higher education, so I am not discouraging anyone from earning their educational credentials. Rather, I am encouraging individuals to do some work and search for scholarships, grants, fellowships, and other forms of free funding to avoid making loan payments for several years to come. The investment on the front end can pay off, big time!

There are many places you can begin to search for scholarships or other financial awards. When I speak with student groups, I ask them to think of some clubs or activities they are involved with and inquire if they offer scholarship opportunities. Another great avenue to search for scholarships is through conducting a random google search.

I want to hear from you, so leave a comment below.

If you are still not sold on scholarships, consider that yearly there are scholarships that are not awarded because individuals fail to apply. So, as you submit your scholarship applications, imagine that you are the only one applying because this may indeed be the case!

~Dr. O




  1. chool. Please advise.Hi Dr. Owens,
    I believe that I am interested in pursuing my graduate degree in business. I am currently deep in student loan debt from undergrad and am anxious to find out how I can find scholarships, grants, and/or fellowships for grad s

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