The Urban Institute conducted a study from 2010-2016 to determine where student debt is the highest from students ages 19-22.
The study concluded that California is among the states where students are least likely to borrow to finance their education.
According to the study, “states with high tuition for four-year colleges and little financial assistance typically have a large share of college students using student loans to finance their education.”
Student debt across the United States, from those attending public universities, increased approximately half a trillion dollars over the last decade.
For the 2017-2018 academic year, Broncos borrowed a total of about $58.3 million and that number may rise depending on how many loans are given to students in summer session.
“We accommodate all of the needs to make sure they [students] accommodate what they need to pay for school without using credit cards,” Loan Specialist Genny Muñoz said.
The cost of attending Cal Poly Pomona for undergraduate students, tuition and fees included, is about $7,400 for the 2018-2019 academic year.
Over a four-year period, tuition would cost about $29,000.
This doesn’t consider items such as school supplies, parking permits, living and transportation.
These items cost about an additional $10,000 if living with parents and about $20,000 if living on campus or away from home per year.
“I’m thankful for not paying an extra 2 grand and losing my complete financial aid to just paying school,” English CPP student Maria Acero said. “That doesn’t count the amount of money I have to pay for books. That’s just my tuition.”
The average cost of attending a public university in California is about $8,000.
From 2014-2016, the average California student borrowed and average of about $7,500.
Average student loan debt:
- National average about $31,200
- California about $30,000
- CPP about $29,000
Students at CPP borrowed an average of about $7,400 last year, which about $400 less than last national average and about the same for the state average.
About 73 percent of the student population received some form of financial aid which helps fund their education.
Approximately 43 percent of the student population on campus borrowed money.
However, the Perkins loans program ends this year.
“The benefits that the Perkins loan had was that the Perkins loan was at a five percent fixed rate and students had nine months after graduating to start repayment. Giving them a chance to get situated with a job before starting repayment.” Muñoz said.
The Perkins loan is another loan that students could receive could receive that is subsidized.
Subsidized loans are those that the government pays the interest on while a student is enrolled in college at least part-time or the loan is in deferment.
Students may need to take out unsubsidized loans to fund their post-secondary education which could increase the overall debt a student accumulates.
Loaning money to students is not something the university takes lightly since they can potentially lose government funding.
According to Muñoz, CPP manages about $72 million per year and to receive Title IV funding, no more than 30 percent of students who borrowed money may default.
The campus would lose government funding if it reached 30 percent, but before that happens the government becomes involved when 20 percent of students who borrowed money defaulted.
Currently the default rate at CPP is 3.7 percent which is about eight percent less than the national average.
For more information, students can visit the office of financial aid and scholarships located in building 98 or visit the website at https://www.cpp.edu/~financial-aid/.
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