May 5, 2016

Putting a Price on Knowledge

Reno, Nev. (May 5,2016) — With the possibility of the Federal Reserve increasing interest rates on student loans, students will be faced with another obstacle that could prevent them from graduating.

Students of Liverpool University waiting to receive their diplomas. Photo taken by Cambrian Team

It is encouraged to pursue a degree after high school, but the idea might seem difficult for those students who are the first in their family to attend college. According to the Imagine America Foundation, one of the main reasons why students are not likely to go to college is because of tuition. Linda Banks — Santilli, a reporter for Quartz.com, goes more into detail about how 50% of low — income students are first-generation.

It is unclear how much the Fed will increase interest rates but experts believe it will be 0.25%.

These same experts believe the change can be coming sometime this year. Those who took out private student loans can be expecting increases in their rates and monthly payments.

Elizabeth Martinez, 19, is a first-generation Latina freshman majoring in Speech Pathology at the University of Nevada, Reno. Martinez was raised by her single mother. Only her mother’s income has supported them financially over the years. She discussed some of the challenges she would face if the interest rates on student loans were to increase.

“It would affect me greatly. Even though I am an only child, my mom is the only one that works. I would have to work twice as hard. The stress of paying for school would reflect in my schoolwork because paying off loans will always be in the back of my mind,” she says.

In a study conducted by Quartz.com, 50% of all first-generation college students in the US are low-income. First-generation students are also more likely to be attending college in order to obtain a nice profession that could help with the responsibilities at home.

Blane Harding became the director for The Center for Student Cultural Diversity in June of 2015, at the University of Nevada, Reno. He believes that the educational background of parents could also be affecting the stress of paying for their children’s schooling. Harding says,

The Center for Student Cultural DIversity is located on the campus of UNR inside the Joe Crowley Student Union. It provides programs and services that help with the academic success of students from different cultural backgrounds. Photo taken by Stephanie Lamas

“A lot of first-generation students are low-income and they’re low income because they are first-generation. Their parents don’t have a college degree so therefore they are probably working a blue collar job and their finances are not enough to handle the financial burden of sending a kid to college.”

The Atlantic reports that due to financial burdens, those who are the first in their families to attend a post-secondary education, are more likely to work while receiving an education. This can cause them to make work a higher priority than schoolwork. This typically results into lower grades.

When a student’s GPA decreases below a certain level, the school, or organization, may take away scholarships and any financial aid. Students are then forced to take out loans to pay for school. The loans will eventually add up in the future. Students then face the challenge of finding a decent paying job to help pay off their student debt after college.

Tarrian Rodgers is a 25-year-old first-generation student studying journalism at the University of Nevada, Reno. He is preparing to graduate this upcoming May with his Bachelors in Journalism and Communications. He plans to continue his education at UNR by attending grad school and receiving a Master’s in Communications. He is worried about paying off student loans he received during his undergrad and hopes that because he will be attending grad school, it will buy him more time to pay them off.

**Tarrian Rodgers (pictured) is a journalism student who is worried about his college tuition. Here he is seen working on his radio program. Photo taken by Stephanie Lamas**

“The rates for graduate school are a lot. I’m preparing myself for it right now. The one thing I am concerned about is paying my college tuition. I have joked about selling some blood and kidneys to pay for it,” he says.

With interest rates increasing, many have begun to fear for the worse. Harding says,

“A lot of people are not going to go to school. A lot of people won’t be able to go to school. A lot people won’t be able to finish. So you go freshmen, sophomore, junior, and then it’s your senior year and you ran out of money. I think if the student debt increases the graduation rates will decrease.”