 "Photo: Illustration by Wes Mitchell and Dane Koch")
In college, most students accumulate knowledge, life experiences and debt.
The average debt for an undergraduate who started freshman year at Chico State and graduated between 2006 and 2007 was $14,491, said Meredith Kelley, interim vice provost for enrollment management.
"We are probably right around the CSU average," she said.
The standard repayment period is around 10 years at 6.8 percent, and with the average debt of a Chico State student, the monthly payment would be $167 in order to pay it off, Kelley said.
"Student loan debt shouldn't be more than 8 percent of your salary after you graduate," she said.
In order to live comfortably and still pay off the average Chico State student debt, students would need an income of $25,050, Kelley said.
The average Chico State graduate makes significantly more than the needed income, she said.
"It's pretty well documented that your salary will be higher the higher (your) level of education," Kelley said.
Not every student has debt when they graduate, and there are things students can do to minimize debt if they do, she said.
"One of the things you can do to save money is to graduate in four years," Kelley said.
The debt students accumulate in college is an investment for their futures, she said.
Students not only have to put in the time and work, but they also have to put in the money they earn.
"I don't have a lot of money to spend anymore," said junior Whitney Rodriguez.
She chose Chico State because it is convenient, close to home and has a good teaching program, she said.
Rodriguez pays for school with her own hard-earned money through payment plans, which cost about $500 a month, she said.
"I am trying to avoid loans as much as I can," she said.
She looks forward to being comfortable one day with her future teaching career, Rodriguez said.
"I am not going to be rich," she said. "I am going to be comfortable, and that's all I want."
On the days she isn't on campus, she is at work, Rodriguez said. Still, she understands that college is a necessary step along the way to her becoming a teacher.
"Getting a job without a college education is pointless," Rodriguez said. "I don't want to struggle for the rest of my life."
She encourages other students to get information about scholarships and payment plans, because financial aid has been very helpful for her, she said.
But students may not be paying as much as they think.
The government pays a majority of student's tuition, said business professor Casey Donoho.
A student pays 20 percent of their tuition but taxpayers contribute to the remaining 80 percent, he said.
The increasing tuition forces students get jobs in order to pay for it, and as a result, they don't graduate on time, Donoho said.
He thinks it would be beneficial for the government to encourage or create incentives for students to graduate on time, he said.
"From an economic perspective, college always pays off," Donoho said.
However, it is possible to get a good job without a college education, he said. Neither Steve Jobs nor Bill Gates graduated from college.
Still, going to college opens up a new realm of opportunities and choices and gives you options that you might not otherwise have, Donoho said.
"On average, people with a college degree make a million more than people with a high school education," he said.
Student's budgeting choices determine some of the debt they have, but many parents work hard to make college free for their kids, Donoho said.
"There's a big difference between buying a text and buying a beer," he said.
Students who support themselves through college get scholarships and work to make it through debt free, Donoho said. However, they end up spending more time in college when they could be starting their careers.
"College was worth it," he said. "Going in debt was worth it."
The advice he has for students is to make a budget, be responsible and continue living like a student after you leave college, he said.
For some students, debt is not a worry at all.
"Right now, my debt-to-income ratio is really low," said senior Shawn Wilson, president of Chico State's investor's club. "It's not detrimental to me."
Wilson views his debt as an investment that will provide dividends for him for the rest of his life, he said.
Wilson understands he needs credibility in order to get into the career he wants and knows college provides that for him.
"When you obtain debt, be sure to utilize it on areas that will increase your marketability," Wilson said.
Kristin Chulick can be reached at kchulick@theorion.com
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