Entering college means the need for debt. Student loans are a staple amongst today’s students of higher education because covering the cost of earning a degree simply isn’t possible with cash on hand or help from family members for the vast majority of students. However, debt after graduation often leads to substantial financial issues for some students.

Graduates with student loans can face an uphill battle when it comes to saving towards other goals. With the average debt load more than $30,000 per graduating student, monthly payments eat away at available funds that could be used to build emergency savings, contribute toward retirement, or save for a down payment on a home. For these reasons, it is crucial to evaluate methods necessary to bring these figures down for graduating students.

Based on compiled data from annual Peterson’s financial aid surveys, which are submitted by participating colleges and universities, LendEDU has put together comparative details on how student loan debt has changed over the last decade. In North Carolina, the average student loan debt per borrower figure rose from $17,693 for the class of 2007 to $26,362 for the class of 2017. That represents a 49% increase for that timeframe, and the state stands as the 19th worst across the country, including Washington, D.C., when it came to 10-year changes to the average debt per borrower figure.

The study also highlights the change in the percentage of graduates with debt in North Carolina. Ranking 45th in the nation for this metric, 52.16% of North Carolina graduates had student loan debt in 2007, compared with the 59.02% for the class for 2017. This represents a 6.86% increase for the decade.

Although the student loan statistics seem grim in North Carolina, some colleges and universities have made better progress toward reducing reliance on student loans than others.

In North Carolina, Davidson College experienced the steepest decrease in its average debt per borrower figure, going from $28,000 in 2007 to $20,431 in 2017, or a percentage decrease of 27.29%. Next was Pfeiffer University, which saw a 8.13% decline in its average debt per borrower figure from $17,350 in 2007 to $15,939 in 2017. After Pfeiffer was Barton College, a school that decreased its average debt per borrower figure from $28,702 in 2007 to $26,477 10 years later, or a percentage decrease of 7.75%.

On the other end of the spectrum, Saint Augustine’s University finished third to last in North Carolina when it came to how each school’s average debt per borrower figure changed over the course of a decade. At Saint Augustine’s, the debt per borrower figure grew from $10,416 in 2007 to $19,500 in 2017, a percentage increase of 87.21%. After Saint Augustine’s University came High Point University, an instutiton that saw its average debt per borrower figure climb by 119.73%. Finally, Wingate University experienced the most significant increase in its average debt per borrower figure over 10 years for the entire state of North Carolina. Specifically, the figure increased by 1,081.93%, going from $2,424 in 2007 to $28,650 in 2017.

When it came to how the percentage of graduates with student loan debt has changed over 10 years, St. Andrews University experienced the most significant decrease; that school’s figure fell by 11.95% over the decade. Johnson C. Smith University’s figure experienced a similar change, falling by 11%, while Lenoir-Rhyne University rounded out the top three as their percentage of graduates with student loan debt went from 96% in 2007 to 85% in 2017, a decrease of 11%.

Contrarily, the University of North Carolina at Greensboro saw their percentage of graduates with student debt rise by 27% over the course of 10 years, which was the third highest increase in that figure for the whole state of North Carolina. Only Western Carolina University and Saint Augustine’s University saw more significant increases when it came to each school’s percentage of graduates with student loan debt; specifically, the former saw an increase of 29%, while the latter experienced an increase of 38%.

Several states have taken proactive steps to help reduce the amount of debt students need to fund their educational goals. For North Carolina, the following strategies could make a difference, which in turn would boost the state’s economy by freeing up cash amongst young adults that can then be used at businesses and on properties throughout North Carolina.

North Carolina may consider incentivizing companies to offer student loan repayment benefits as a perk to new employees through tax breaks or financial assistance. Although this would not necessarily reduce the amount of student loan debt taken on by graduating students, it would ease the burden of repayment for students, allowing them to contribute to other financial goals as well as their local economies.

Offering a higher number of state-based scholarships and grants to North Carolina residents could have a significant impact on lowering the need amongst students to take out federal and private student loans. Grants and scholarships based on merit and academic performance or financial need create more opportunities for students to earn a college degree without taking out student loan debt. These awards could be provided by private institutions, nonprofits, or funded through the state.

Finally, North Carolina could have the most influence on the need for student loan debt by limiting the cost of college for state colleges and universities, both public and private. Putting a cap on college tuition costs helps make earning a degree more affordable and ultimately, decreasing students’ reliance on debt to fund their degree.

Find out more at my website at https://lendedu.com/blog/student-loan-debt-decade-comparison/

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