Students all over the country struggle each year with paying off their student debt. Here at Cabrini, it’s no different. Student loans have become a huge hurdle for parents to overcome in order to pay for their child’s cost of higher education.
The epidemic of this situation is increasing and the financial aid office has their work cut out for them. With President Obama’s “Pay as You Earn” plan for student borrowers, it is essential to understand where the money a student is borrowing comes from. From speaking with the Director of Financial Aid, Michelle Taylor, it will help inform students on her opinion of Obama’s new plan and her perspective on student loans.
“I believe as students take out loans each year, they make an effort to understand how much they are borrowing and what that will mean when they graduate. Every first-time student loan borrower is required to participate in the Loan Entrance Counseling provided by the Federal government on studentloans.gov,” Taylor said in an email. “The purpose of this online counseling is to give easy access to the information students need to know when they are borrowing funds.”
From her recent experience here at the college, she was able to help students to understand their financial package and comprehend it on their own.
“In my experience, while many students do complete this requirement on their own, there are still those that rely on the parent and/or guardian to complete it for them. I always tell students, we know financial aid can be intimidating at first, but it really is important for them to be the ones reading and understanding all the things related to their financial aid award, especially their loan obligations,” Taylor said in an email.
Taylor also explains what the negative aspects were for student loans and the burden it puts on families each year. “Failure to address your student debt can have a profound financial impact on your future goals. The negative consequences of failing to pay off student loans lasts much longer than the four years spent at school. Failure to repay defaulted loans can lead to garnishment of wages, offset of federal and/or state income tax refunds and any other payments, as authorized by law, and losing eligibility for other federal loans,” Taylor said in an email, “not to mention the impact it may have on your credit score. The most important things a student borrower can do is (1) only borrow what is needed to cover educational expenses and (2) once in repayment, be sure to know your repayment options and what you can do to stay in good status if you fall on hard times such as changing your payment plan or filing for deferment and/or forbearance.”
Since the recent coverage of Obama’s new plan, “Pay as You Earn” program I wanted to understand her input and her opinion on how she feels this will benefit students and their families.
“The pay as you earn program allows for income sensitive repayment option limited to 10 percent of your income. There are other options already available that will limit your monthly payment to 15 percent – my opinion is simple – the more options students have to successfully manage their finances post-graduation – the better off they will be,” Taylor said in an email. “Obama’s plan will have students paying a higher amount over time because of the interest accruing but if this type of payment option is what a student needs to continue to make good on his/her debt, then it is worth having as an option.”
Student debt is a continuous struggle for students and their families each year while they are in school. The Financial Aid is open for questions and to help assist undergraduate and graduate students at any time.
Financial Aid
• Financial Aid can be found in the Cavalier Express Center on the first floor in Grace Hall
• They can be reached by phone at (610) 902-8188
• You can email them at financialaid@cabrini.edu
• They are willing to answer any questions about your Financial Aid status.
