As hard as it is to believe, July is already behind us and back to school supplies have hit the shelves. For many, that means stuffing backpacks with everything from crayons and rulers to Kleenex and hand wash. For college students, back to school planning often includes much more. Leaving the security of home, establishing a new support system, and facing the rising costs of tuition can all lead to a build-up of anxiety and tension. The month of August doesn’t need to be met with dread, however. With a little preparation and insight, the last few weeks of summer can be filled with the anticipation of what is to come, all while enjoying what already is.
For many incoming college freshman, one of the first decisions that has to be made is where to live. A large portion of new students choose to live in residence halls, a decision that can alleviate much of the stress involved in living away from home for the first time. According to Heather Phillips, Director of Housing and Residential Life at Minnesota State University Moorhead (MSUM), approximately 83% of first-year students live on campus. “There are many benefits that students experience by living on campus,” Phillips explained, “including community, convenience, support, leadership skills, and success.”
Living in the residence halls allows students the opportunity to adjust to college life without the burden of dealing with a multitude of external stressors. It also puts students in close contact with a ready-made support system, something Phillips hopes all students will utilize when necessary. She offers the following advice to new students: “Talk to someone if you’re struggling … communicate with your roommate if you have a concern, tell a staff member if you’re struggling personally or academically. Faculty and staff on campus, including those of us who work in Housing and Residential Life, want to help students be successful.”
At Concordia College in Moorhead, all students live in residence halls their first two years on campus. After that, approximately 60% of full-time undergraduate students live on campus, according to Mikal Kenfield, Associate Director of Residence Life. “At Concordia, we find that having so many students living on campus creates a dynamic environment that enhances the residents’ educational experience,” he said. “Year after year, our students share with us how much they gained from living in a residence hall – things like: learning how live with someone from a different background, how to problem solve and use critical thinking skills and what it means to compromise, share and effectively communicate.”
Kenfield offers similar advice to incoming students who are new to residential living. “I encourage students to not make snap judgments based on things they might see on social media and to take the time to actually get to know their roommate as a person,” he said. “I also really stress communication – does something bug you? You have to find a way to talk about it, because roommates can’t read minds.” Oftentimes, the friendships made in college endure throughout one’s life. Making the decision to live in residence halls, even if simply during the initial transition phase of college, can make the conversion to college living much smoother.
Other significant factors to consider when starting college are tuition costs and financial aid. As tuition costs rise nationwide, more and more graduates are becoming saddled with huge financial aid debt. It can be easy to live in the moment and not consider the ramifications of financial aid, but students need to carefully consider how their actions in college will affect the rest of their lives.
In regards to tuition, students in Minnesota can currently take advantage of a two-year tuition freeze courtesy of the Minnesota legislature. That doesn’t mean however, the costs are still not a concern. Dr. David Wahlberg, Executive Director of Marketing and Communications at MSUM understands the issues. “Students and their families are very concerned about college affordability and so they look for real value for their investment,” he said. “We recently undertook a strategic planning process and realignment of our academic departments so that our programs produce graduates that best meet the needs of the regional workforce.”
Dr. Wahlberg explained that tuition cost (and corresponding increases) is not always under the control of individual universities. “People should understand there are a number of reasons for tuition increases, the most significant for us has been a multi-year disinvestment at the state level in higher education funding,” he explained. “In 1996, Minnesota legislative appropriations covered two-thirds of the cost of a college degree with students picking up the other third. But as state appropriations declined, that ratio flip-flopped and now students are responsible for two thirds of the cost.” There is good news for college students, however. According to Wahlberg, after years of declining state appropriations, this past legislative session provided a funding increase. “Funding is not at 1996 ratios,” he explained, “but it is a welcome step in the right direction.”
In order to cover costs, most students will take advantage of the financial aid programs offered by the federal government and private lenders. According to Eric Addington, Director of Financial Aid at Concordia College, 99% of Concordia students receive some type of financial aid. Addington and his staff understand how daunting the financial aid process can be. “Our Financial Aid Office and Admissions Office work with each family individually to make sure they understand how to navigate the financial aid process, and help them understand what the net price of a Concordia education will be for their family,” he explained. “We also award over $60 million in financial aid funds each year to help families afford Concordia College.”
Some students will choose to deal with the tuition increases by attending a two-year school. M State in Moorhead is one such option and the school expects to see a 2 percent increase in enrollment in 2013. According to Mary Devine Johnson, Director of Communications and Marketing at M State, the college is currently implementing programs designed to increase enrollment and make college more affordable. “M State recently launched a new partnership with MSUM designed to support learning and to motivate students to complete a university transfer degree,” she explained. “Students enrolling as freshman during the 2013-2014 academic year will be the first who can participate in M State’s now up2U program.” Through up2U, M State graduates who qualify academically will be able to earn a substantial tuition deduction during their junior year if they transfer to MSUM.
Tuition costs vary between schools, but the end result is the same for financial aid participants – the loans have to be paid back. How much that repayment is depends largely on two factors: how much students borrow above and beyond their need, and interest rates. Interest rates on subsidized federal student loans jumped from 3.4 percent to 6.8 percent on July 1 after Congress couldn’t reach an agreement on a new program. Last week, the U.S. Senate approved a student loan program that would initially put interest rates at 3.9 percent for undergraduates and tie future rates to financial markets, a move that is supported by President Obama. It is very easy for students to think about their needs and desires as they pertain to the now. The first repayment bill after graduation often provides a significant shock. Many students find themselves muttering, “If I had only known then…”
Andrew Olson graduated from MSUM in 2011. Even after successfully securing a job teaching English at North Eastern Oklahoma University, Olson finds himself struggling to repay his financial aid debt, especially considering his wife is a recent graduate as well. “Even though we are currently closing on our first home,” he said, “our combined student loan amount will remain our largest debt burden.” Although Olson believes he was very budget conscious in high school, things changed when he went to college. One of the issues was the seemingly enormous financial aid checks. “When I entered college, money and finances became too abstract.” Like many students, Olson thought very little of future financial ramifications. “It’s too easy to take the full amount without really understanding how much you will have to pay back,” he said.
Like many financial advisors, Olson advises students to think past the current moment when it comes to financial aid. “When a student receives their financial aid reward, I would encourage them to actually sit down and calculate how much they will be paying back over a time period of say, 25 years after they graduate based on current interest rates.”
Ultimately, the fact remains that young people put themselves in a better place to succeed with the completion of a college degree. For most, that will mean utilizing existing financial aid programs. With a little foresight and planning, however, they do not need to graduate under the burden of debilitating financial debt.