Nicholas Swisher '08 is beginning to feel the pressure.
With over $20,000 to pay back in student loans, the former Herald opinions editor is currently searching for a job to help him with his first few payments, which are coming up in a few months.
Swisher, who worked for President-elect Barack Obama's campaign in southeastern Pennsylvania after graduation, plans to go to law school in two years but needs to find a job in the interim. So far, the options for the history concentrator have been limited in today's uncertain economy.
"It's pretty brutal out there," he said. "It makes me nervous about my prospects."
Recent financial aid policy changes at Brown - which replace loans with grants for most students whose family income is less than $100,000, and eliminate parental contributions for most students whose families make less than $60,000 - will likely make Swisher's predicament less common for many students from the class of 2012 and beyond.
Yet the history concentrator's anxieties seem to echo the sentiments of other graduates across the country, who saw themselves graduate with high amounts of debt in an increasingly uncertain economy.
Deeper in debt
In 2007, the average college student graduated with an average of $20,098 in student loans, a 6 percent increase from $18,976 in 2006, according to a recently released report by the Project of Student Debt, a part of the nonprofit Institute for College Access and Success, which conducts nonpartisan research analysis.
That same year, the average debt of a Brown graduate rose to $18,610 from $15,940, according to the institute.
The figure was higher than a number of other Ivies: Yale graduates left with an average of $12,237 in loans; Harvard graduates with an average of $9,290; and Columbia graduates with an average of $6,399.
Compared to other Rhode Island schools, however, Brown's class of 2007 graduated with a lower average debt than most of the other Rhode Island schools - nearby Providence College saw the average graduate leaving with over $35,000 in loans.
Rhode Island was named one of the top ten high-debt states in the country by the project, which noted that New England states "tend to have more students than average attending private colleges" and that these universities have "higher than average tuition for both public and private colleges."
But local lenders have also noted that students in the area are borrowing more. "We have seen an increase in the number of people and the dollar amount for Federal Stafford Loans and Federal Plus Loans," said Noel Simpson, the chief financial officer of the Rhode Island Student Loan Authority, adding that many people have also been taking advantage of the Rhode Island Family Education Loan Program.
According to financial aid experts, a number of reasons - including rising tuitions and more students going to college - can be attributed to the increases.
The housing crisis has also been an issue, since home equity loans were a large source of college funding for families, according to Simpson.
"The increases are worrisome," said Matt Reed, a policy analyst for the Project on Student Debt. "It shows us that college is usually a good investment for students ... but it's also a bit of a risk."
Universities, govt. respond
Though student debt tends to be rising at many universities, a number of institutions, including Brown, have tried to alleviate the stress of it. Helping students better deal with loans was high on the agenda in terms of Brown's new policies, said James Tilton, director of financial aid.
"One of the main things we wanted to do is reduce private lending and overall student lending," Tilton said.
The University's pledge put Brown on a list of over 50 other top colleges - including every other Ivy League university - that have eliminated or limited loans for students on financial aid.
The federal government also seems dedicated to drastically helping with financial aid and student debt - especially in terms of keeping federal student aid loans afloat in the midst of the credit crisis. Earlier this May, lawmakers signed the Ensuring Continued Access to Student Loans Act of 2008, which allows the Secretary of Education and the Secretary of the Treasury to purchase student loans if an adequate amount of capital does not exist.
"Financial aid is one of the areas where Congress has stepped up to ensure it isn't negatively impacted," said Haley Chitty, associate director of communications at the National Association of Student Financial Aid Administrators.
President Bush signed the College Cost Reduction and Access Act in September, which includes a loan forgiveness program for students entering public service. The program will be helpful for those who are interested in public service but feel pressured to take better-paying jobs because of their loans.
As for the future of federal aid, President-elect Obama, who helped expand Pell Grants while in the Senate, has noted in a recent CNN interview that education is one of his top priorities during his term, but said that it will come after tax relief for the middle class, energy, health care and tax restructuring. His education plan includes the American Opportunity Tax Credit, which would provide $4,000 per year for students pursuing higher education, provided that they complete 100 hours of community service. He has also mentioned eliminating the Federal Family Education Loan program, which pays subsidies to private lenders who offer government-supported funds.
Missing the boat
Though help seems to keep coming for current students, a number of recent graduates who could not benefit from the newly-instated financial aid policy feel disappointed, as if they missed the boat.
Jeremiah Kittredge '08, who graduated with about $20,000 in loans, said he had often lobbied to make substantial changes to financial aid while at Brown. "I understand the frustration that over the four years I was at Brown, nothing happened," he said. "But at the same time, this is a very honorable and smart change for Brown."
The class of 2008, who graduated right before Brown's new financial aid policies and right before a financial crisis, "just sort of got unlucky," he added.
Meanwhile, Swisher said he had still hoped the Office of Financial Aid would "reach out as much as possible" to recent graduates, especially considering the state of the economy.
Though he doesn't expect any financial assistance, he thinks "it would be great if they reiterated the resources and options that some of us have."
"I just want to know what it will be like to pay off your loans in this climate," he said.
