More than one-third of college students with student loans are pessimistic about their financial stability after graduation, according to an online survey.
Results from a 1,300 person survey released Friday by CollegeGrad.com indicate 51 percent of college students with student loans anticipate having to pay them back for more than 10 years.
The average student graduating with a bachelor's degree claiming student loans owed $16,700 in the spring of 2006, said Henry Urich, assistant director of UT's Department of Student Financial Services. The average student graduating with a master's degree owed $36,500, and the average graduating law student owed $54,500 according to the department.
"I'd estimate I'm going to owe around $120,000 in student loans when I graduate from law school," said Bradley Domangue, a UT law student. "It really depends on where I decide to live and practice and how much I'm making upon graduation that determines how long I'll be paying them back. There's a good chance it will take me anywhere from 10 to 15 years."
An increase in interest rates for federal student loans and increasing tuition are cited as causes for this common attitude among students, according to the Web site.
Urich said he believes there are ways to keep student debts under better control.
"It starts before graduation. I would urge students to borrow conservatively, know what your true costs are, and if you can borrow less, certainly do so," Urich said. "I would then tell graduates to stay extremely close and in touch with your lender. Let your lender know if you've moved and always keep them informed if your financial status changes significantly so they can help you."
Students can also consolidate multiple loans, which will result in a lower monthly payment, so students can pay less in the beginning and pay more as they earn more money, said Staci Schiller, marketing program manager for Wells Fargo & Company.
"I really think the best way for students to take care of their student loans in a reasonable amount of time is to make sure they get a well-paying, viable job after graduation," said Heidi Hanisko, a spokeswoman for CollegeGrad.com.
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