Debt a factor when choosing college

According to Pat Garofalo of the Wall Street Journal, the unemployment rate in November 2009 for college graduates aged 20 to 24 climbed to 10.6 percent, the highest ever recorded. Coupled with high unemployment, Project on Student Debt identified that the class of 2008 graduated college with an average debt of $23,200.

If you are one of the lucky few to find a job at a reasonable wage, prepare to make 120 loan payments of $266.99 per month assuming an interest rate of 6.8 percent, which brings the 10-year grand total to $32,038.18 on your original debt of $23,200. But, job or no job, you have a six-month grace period after graduation and then you're subject to the same payment requirements regardless of income. Don't forget, student loans are ineligible for cancellation by filing bankruptcy, so there is no easy out.

This data doesn't imply that it's financially irresponsible to go to college because lifetime earnings still far surpass the debt cost. However, it is important to understand the differences in cost. To use a north country example, compare the price tag of St. Lawrence University to SUNY Potsdam. SLU costs $47,560 a year, but to be fair the SLU Web site states that the average student only pays $28,000 a year. This means that the average student receives almost $20,000 in grant or scholarship aid per year.

SUNY Potsdam, on the other hand, costs less and gives less. According to the SUNY Potsdam Web site the total cost of room, board, and tuition for an in state resident is $14,240 before grants and scholarship aid come into the picture. After recognizing what the "average" student pays at St. Lawrence, an unfortunate reality develops that after St. Lawrence gives $20,000, it still costs twice as much as SUNY Potsdam.

Why, then, do so many opt for a private school such as St. Lawrence when their debt burden becomes much greater? Well, theoretically those graduating from private college are given greater access to higher-quality professors; they're coddled by the administration, given access to private alumni networks, have smaller class sizes, and in some cases they're credited for being a member of a popularized brand name.

Do these alleged private school assets justify a doubled cost? Maybe, but regardless of what you decide, be sure to determine your loan burden first, because it's there to stay.

Samuel Draper

Canton