Two-thirds of 2010 college graduates had loans which accumulated to an average debt of $23,250, an increase of 5 percent from the previous year, according to a report released yesterday by The Institute for College Access and Success.
The report, "Student Debt and the Class of 2010," was released by The Project on Student Debt, an institute initiative which works to increase public understanding of student debt.
"In general, college costs have been rising faster than available grant aid or family income," said Matthew Reed, the institute's program director. "Many students and families turn to borrowing to fill that widening gap."
College graduates of the Class of 2010 in Virginia had an average debt of $23,327 and 58 percent of graduating students had loans, the report says.
Scott Miller, senior associate director of Student Financial Services at the University, said the 2010 graduating class had an average debt slightly above $19,000 and about one-third of students at the University had debt. He attributed these lower numbers to the fact that the University "takes several steps to try to limit the amount of loans that students take out."
Miller added that the University does not "push private loans on students" because they do not have as many consumer benefits as federal loans. The University also meets 100 percent of need-based loans.
"It's very important for students to apply for financial aid," Reed said. "Many students don't realize that regardless of your income background, you can qualify for federal student loans. That's the best way to pay for college."
Reed said the higher earnings and lower unemployment rates among college students make it possible to repay student loans.
"Many [graduates] are able to comfortably pay their student loans from earnings," he said. "The federal government offers an income-based repayment program, in which loan payments are capped based on your income"
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