Whoever Said “Money Isn’t Everything” Clearly Never Met a College Student
The intricacies of student debt, financial aid, and money stress
By Andi Dominguez
From an early age, many children are told that they can be who ever they want to be. They can aspire to become a doctor, a lawyer, a scientist, or maybe a politician. The sky is the limit.
For the most part, landing a career may be fairly attainable. If a person attends high school, gets good grades, works hard, applies to college, and earns a degree, they can most likely find a job to support themselves. What everyone forgot to clearly emphasize, however, was how realistically expensive this process was going to be.
The flaws of financial aid
Joanakarla Lopez, a fourth-year communication major at UCSB, represents the typical college student who works hard to pay for college. On top of her busy class schedule, Lopez works 35–40 hours between her internship and part-time job to cover her tuition, rent, and other expenses.
While Lopez receives some financial aid grant money, the federal government limits her award because her parents are considered capable of contributing to her tuition. This unfortunately is not the case, and she has to take out many loans as a result.
Financial aid is dependent upon the yearly income of a student’s parents. Unfortunately, not all parents are able to contribute to their student’s college education, either because they are unable to or because of unforeseen circumstances. In addition, some individuals are not eligible for grants or scholarships. Consequently, these students might have to take out several loans, which can have steep interest rates that are difficult to repay.
During the busiest time of the year, the UCSB financial aid office helps over 200 individuals a day with exploring financial options. An information specialist at UCSB’s financial aid office said, “While the reasons for financial difficulties will vary and can be unexpected especially if they are family related, oftentimes they are avoidable and the result of the student not meeting important financial aid deadlines.”
Zachary Armour, a recent 2015 college graduate from UCSB, contradicts this statement. Armour’s mother made a middle-class income at the start of his college career, but she was laid off shortly after Armour turned in his financial aid application with her yearly income. As a result, Armour did not receive enough financial aid to make up for his mother’s sudden unemployment. Despite making frequent visits, the financial aid office was only able to give him more loans to cover the high cost of tuition.
The reality of tuition and student debt
Including living expenses, California residents spend a whopping $33,600 a year to live on-campus at the University of California, while students living off-campus spend $29,400. Want to attend a private university? Or perhaps a college in a different state? That will burn an even deeper hole in your pocket.
According to a Bloomberg chart, tuition on average has risen 538% since 1985, and as tuition continues to rise, college students that need loans can expect an even heavier student debt burden after they graduate. Students and their families collectively dive $100 billion deeper in debt per year within the U.S. to cover the costs of a college education, according to one CNBC report.
Similar to other recent graduates in California, Armour is currently saving all his money to afford his upcoming monthly loan payments. “I’m lucky that I was able to find a job after school to prepare me for these payments,” said Armour. “I feel bad for everyone who is still trying to figure things out.”
Lopez will also have student debt bills to pay following graduation. After four years of hard work and saving, she hopes to find a self-sustaining career in marketing to cover her upcoming loan bills.
The implications of monetary struggles
Unfortunately, financial strains can hurt more than a college student’s wallet — it can also affect mental wellness. According to an article published in Medicine Education, researchers found a relationship between loan debt stress and academic performance. In other words, increased student debt stress predicts lower academic performance.
In addition to mental health, physical health can take a beating as a result of financial woes. In response to increasing economic hardship, the AS Food Bank at UCSB opened in 2011 to provide students with “immediate food relief” free of cost as well as a safe haven for students that struggle with the financial stigma.
The AS Food Bank became an important entity for Destiny Estrada, a third-year UCSB student majoring in psychology. While Estrada receives financial aid throughout the school year, she does not receive aid during the summer months because she does not need to take classes. However, Estrada has to stay in Isla Vista during the summer in order to keep her part-time job and internship.
“I was living paycheck to paycheck to pay my rent and utilities, but it was not always enough,” said Estrada. “I blew through my savings and was not able to always buy myself food, but the AS Food Bank helped me put something on the table.” Estrada receives both grants and loans from the federal government during the fiscal school year.
Although the AS Food Bank is a significant resource to many students, the organization can only do so much. Tuyen Nguyen, the food bank coordinator at the AS Food Bank, said, “We do not know what type of food will be available in our pantry and with a budget restriction, we are limited to what we can provide.”
Another issue for college students experiencing economic hardship is not having enough money for emergencies or unexpected circumstances. Earlier this year, Lopez had a cyst in her eye that required her to pay hospital bills out of pocket because her parents could not afford it. She said that her financial situation has become even more complex since her younger brother started college in 2014.
Therefore, while there are various financial aid options and resources made available for students in need, there are limitations.
Student debt in the political arena
Fortunately for Lopez, Armour, and Estrada, student debt is at the forefront of political discussion for the 2016 presidential election. Democratic candidate Bernie Sanders stands for tuition-free college, while Democratic candidate Martin O’Malley argues for debt-free college. Specifically, tuition-free college would make college free to students, while debt-free college would eliminate the need for student loans to pay for college, according to an article on The Guardian.
In contrast, Republican candidate Chris Christie has endorsed student loan repayment based on post-graduation income. He believes that debt-free college is wrong.
With the presidential election underway, college students are uniting in hopes of changing the reality of student debt, rising tuition, and student worker compensation. On Thursday, more than 1,000 students attended the Million Student March at the UCSB campus to bring their financial hardships to the foreground of discussion. Their demands included free tuition, a $15 minimum wage, and the eradication of student debt, according to the Daily Nexus.
Some individuals believe that their demands are too difficult to fund. Others believe that these demands eliminate student competition and denounce the effort that many students put in towards paying for college.
Jenna Zendarski, a student writer for the online college news website, The College Fix, is one of these opposing voices. To Zendarski, more students need to recognize that hard work is required to pay for a college education. In other words, college tuition cannot be handed out for free.
Opposition aside, protestors of the Million Student March represent the voices of struggling students like Lopez, Armour, and Estrada.
Fortunately, there might be light at the end of the tunnel. “I have become very independent and I’m happy that I know how to stand on my own two feet,” said Lopez. “My financial struggle has given me the motivation to want to become successful and do what it takes to get there even if it seems impossible.”
No matter the circumstances, Estrada and Armour said they will not let their financial situations get in the way with pursuing their degree.
