CMU Sees Student Loan Debt Increase

As the cost of college tuition rises, more students are seeing their debt loads increase. A recent report in university publication Central Michigan Life reveals that students increased their education-related debt by $10,000 over a five-year period.

Citing data from the Office of Institutional Research, the newspaper reports that the average level of student debt has grown from $16,537 in 2005 to $26,615 for the 2009-2010 school year. Additionally, nearly 70 percent of students are reported to borrow money to fund their education each year.

Recent studies have shown that more students are using credit cards to pay for tuition or college-related expenses - a habit that financial professionals say is a big problem.

"What a student does not realize is that once they graduate and after they find a job, what they live on is their salary after loan money," Fleming said. "If you're looking at $500 a month, that’s money that could have gone towards a car payment or mortgage," Scholarships and Financial Aid associate director Diane Fleming told the newspaper.

With more unemployed recent graduates seeking debt relief from student loans, college-bound students should consider Pell grants, scholarships and work-study programs before turning to loans.