Looking to Pay for School?—Consider Debt

There’s no doubt that college and graduate school are expensive. In our days of economic malaise caused in part by a debt-ridden populace, a rash of students have begun to eschew debt at all costs, altering their amount of credits, how they commute to school, and whether or not they hold a job while attending college. But perhaps the true answer to making school affordable is a little bit of debt afterall.

Consider the case of Jessie Yeh. Yeh attends college like many, but he’s made some unorthodox decisions. Instead of buying textbooks for his classes he frequents the school library. Instead of cooking or buying food, he seeks out campus events that serve free food and occasionally skips meals. He doesn’t have time for exercise with his extreme course load, chosen to minimize tuition costs, and he barely sleeps.

Student’s like Yeh are becoming a more and more common sight. And although he’s debt free and busy completing his education, there’s a problem. He, and students like him, are statistically at risk of not graduating successfully. Below are some statistics pertaining to graduation rates:

• Full-time students graduate at higher rates than part-time students at a 60% rate for full-time students and a 25% rate for part-time students.
• Only 26% of students that attend community college end up with a degree in 9 years time, while students at non-selective four-year colleges have a 50% rate and students at selective colleges have a 73% rate.
• Demographically, 51% of black people requiring financial aid but declining to enter into debt failed to graduate and 41% of Hispanics in the same situation also failed to graduate. Black people that did borrow in the same situation had only a 39% dropout rate and Hispanics had a 32% rate.

All the statistics share a common thread: debt. Full-time students tend to require more financial aid, as do students attending four-year colleges and selective schools when compared to their community college counterparts. And the demographics clearly show higher percentages of graduation within many ethnic groups when borrowing takes place.

Individuals can always break statistics; there are no hard and fast rules that can determine whether or not a student will successfully graduate. But the statistics do indicate that borrowing helps graduation rates. And what is the use saving oneself from debt to attend college if it increases the stress and other burdens so much that in the end, the degree is left uncompleted and the money is wasted anyway?

Maintaining watchfulness over one’s debt levels is a healthy attitude, especially in lean times. But we must not forget that debt, properly managed, is a highly useful investment in one’s own future that can pay great dividends later in life. So if you’re looking for the means to afford school, consider debt at the same time you consider a job and an extremely high or low course load. Debt may just be the best option.