More Money, More Problems
Between 40 and 50 percent of all JMU students receive some kind of financial aid
By Kelly Mason, staff writer
Posted on November 2, 2006

College loans are more bittersweet than ever.

“On average, between 40 percent and 50 percent of the JMU student body receives some form of financial aid,” Brad Barnett, senior associate director in the Office of Financial Aid and Scholarships, said.

He added that this amounts to about 42 percent of in-state students and 45 percent of out-of-state students receiving aid.

However, based on these statistics, many JMU students are going to have to deal with the burden of paying someone back.

“I’m definitely nervous about paying back student loans,” junior Leigh Ulrich said, “but I try not to think about it because it’s overwhelming.”

Barnett said after looking at spring 2006 graduates, factoring in only federal Stafford and Perkins debts, the average loan debt of a JMU undergraduate student was just under $12,000.

Students who take out federal loans need to pay them back within 10 years, according to the loan contract.

However, students have said this can be stressful when they are searching for jobs, trying to pay rent and dealing with car payments and other monthly expenses.

“Being a nursing major, the job market is pretty good, so I know I will find a decent job and will begin to pay off the loans,” Ulrich said. “I won’t be able to go out and buy a fancy car, a big house and lots of nice things right away, but eventually I will.” 

Although some students may want to consolidate loans and extend the amount of time they have to repay, Barnett advises against this.

“Students who consolidate their loans can extend their repayment longer than 10 years in most cases,” Barnett said, “but doing so simply increases the overall amount repaid because the loan is accumulating interest over a longer period of time.”

According to the JMU Office of Financial Aid and Scholarships Web site, the interest rates for 2006-’07 are 6.80 percent for Stafford Loans and 5 percent for the Perkins Loan. These rates are typically fixed for the life of the loan.

Barnett’s recommendation to students regarding loans is to stay away from them if you do not absolutely need them.

However, he said, “If you must take a loan to help pay for college, then be sure to research the lenders carefully so you take a loan with a company who offers the best benefits for your situation.”

A Preferred Lender List is on the Office of Financial Aid and Scholarships’ Web site at jmu.edu/finaid.