3/20/2013 2:52 PM ET|
College won't accept students who need loans
A Missouri school says borrowing to pay for a degree is no longer acceptable. Applicants are expected to work instead.
One college is taking an unusual approach to the problem of mounting student debt: It's no longer accepting applicants who need to take out loans.
The College of the Ozarks, a private, evangelical Christian school in Missouri, may be the first institution of higher education to take the step, Reuters reports.
The reason for banning loans? "Debt is a big problem all over the country," Jerry Davis, president of the four-year school, told Reuters. "Kids nowadays are not very sophisticated with money."
But many would say the bigger problem is the surge in education costs, prompting families and students to borrow money for earning a college degree.
The average cost of a four-year college topped $22,000 for the 2010-11 academic year, almost triple what students paid just two decades ago, according to the U.S. Department of Education.
The College of the Ozarks isn't cheap, either. Tuition for the 2012-13 academic year is $17,900, but its website tells families (italics are from the school), "Don't panic!" So, how does it expect students, who can no longer take out loans, to afford the school?
The school previously had a policy that students must work on campus, defraying some of their costs, while federal and state aid also help. And scholarships are available, if needed. The college's home page advertises the school as "Hard Work U.," and notes "debt is openly discouraged." Or as Davis told Reuters: "This is a work college, not a debt college."
The school's president said it no longer works with students or banks in covering costs via loans. About 99 students will be affected by the policy change, because they carry private loans to help offset the cost of boarding or other expenses, the story adds. Davis added that he's confident the college can accommodate all students, but those who insist on loans will need to transfer to another school, according to the report.
Nationally, the average student debt for the class of 2011 jumped to $26,600, up from $25,250 in 2010, according to the Project on Student Debt.
At the same time, however, many graduates are struggling to find jobs that can pay enough to cover both their loan repayments and the cost of living. Two years after leaving school, students who graduated in 2010 defaulted on their federal loans at a rate of 9.1%, up from 8.8% for the previous class, according to the Department of Education.
QUOTE: ""Debt is a big problem all over the country," Jerry Davis, president of the four-year school, told Reuters."
Isn't it true, however, that Mr. Davis himself was the recipient of loans when he attended college?
the key words in this article:
It can be done. My brother worked and got good grades and a few grants. I paid for my education while working. Kids today are getting out of school with debts they can't pay on their salaries. Additionally, they are not getting jobs right out of college because of our poor economy.
The students will be much better off in the long run, not starting out after college with loans that can't be repaid. Finally, there are plenty of colleges that do take loans so it is not like it is their only choice.
I believe that people do better, work harder, get smarter when facing tough challenges. I actually think handing people everything is causing many problems: lack of respect for one's own responsibilities (loans, property, family) and also lack of respect for others, and lack of respect for their responsibilities as a citizen.
People who work hard toward a goal also gain something incredibly important . . . SELF RESPECT.
I'm all for reducing the amount of debt students take on to finance their education. My philosophy was to work my butt off and only take out what was necessary to cover what I couldn't pay out of pocket or cover with scholarships.
That being said, my student loans were an "investment" in my future. My line of work requires a BA/BS, therefore I had to take a step back with the loans to take two steps forward at the end of my schooling.
By the way, I received numerous mailings from this school when I was in high school. Place looked like a joke.
Smart move!! Why waste an education on someone, who will graduate in-debt, may not be able to find a job that will pay enough to support the debt, may be uneasy upon graduation and will not make a good impression on a prospective employer (because they only want a job!).
What ever happened to work a schlepp job for a few years & save, or go to school at night??
Join the military and get education benefits.
They should specify that the 22,000 is for one year. They way it is written it sounds like $22,000 for a four year degree. Multiply that by four and you’ll have the actual amount the average four year degree costs. Last I looked it was about 2000 per course at the cheaper university.
I never really understood why tuition was so expensive anyway. Where does all of that money go? Damn sure doesn't help the students!!
Only rich kids get a higher education, now! You frickin Dean's need to quit spending all the money on yourselves, you're as bad as CEO's!
I'll teach ya something, GREED diminishes brains!!!!
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