UW-Madison's undergraduate class of 2003-'04 graduated with an average student loan debt of more than $17,000, according to the Wisconsin State Journal. The average debt for the 1993-'94 class was $10,800, said Susan Fischer, associate director of the Office of Student Financial Services.
Fischer attributed several factors to the increase in debt of approximately $7,000 over 10 years.
\Part of it [has] to be the cost of ... tuition going up,"" she said.
The tuition rate for undergraduates for 2004-'05 is $5,254 and the UW System plans to implement a progressive 4.3 percent tuition increase over 2005 and 2006.
Faced with these numbers, some students said paying for college with only scholarships and grants is nearly impossible.
""I had no other way to pay for school,"" said Rachelle Stone, UW-Madison junior, regarding why she borrowed loans. ""I didn't have enough scholarships to cover tuition and room and board.""
Stone said she ""would have had to take out loans either way,"" though the increase contributed to her decision.
Fischer also noted increased availability of loans as a contributing factor to the rising average debt. In 1992, the Federal Reauthorization of the Higher Education Act changed the restrictions of Stafford loans so undergraduates could borrow non subsidized loans even if they did not demonstrate financial need, she said.
The availability of non subsidized loans, which accrue unpaid interest during an undergraduate's schooling, resulted in students from higher economic backgrounds borrowing Stafford loans.
""That simple act caused our loan volume to increase dramatically,"" Fisher said. ""Somebody opened the gate and more people accessed the money.""
Avoiding debt is important, Fischer said. Alternatives to loans, such as scholarships, are available and ""students should be online right now looking for scholarships for next year. January's too late,"" she said.
""Usually a loan just seems like an easy option or easy way out, but ... the debt that the student would be in later"" is not as obvious to see, said Cedric Lawson, UW-Madison junior and vice-chair for ASM.
Employment during the school year and summer is a proactive way to offset the costs of tuition and avoid taking out loans, Lawson said.
Fischer stressed personal budgeting, like not owning a car in Madison and shunning restaurants for meals.
""Someone once said to me, 'If you live like a lawyer when you're in school, you will live like a student when you're a lawyer,"" Fischer said.
