Many students take out loans to complete their higher education, and in Tennessee, those students face less debt after graduation than students in other states.
Some universities in Tennessee are taking action to provide students with as much assistance as possible. A financial aid adviser at Rhodes College who asked not to be named said students there are encouraged to take out the minimal amount of loans that are necessary.
“Because we are the most expensive school in Tennessee, we try to give our students as much financial assistance as we can,” the financial aid adviser said.
Rhodes College offers exit counseling for financial aid, though it is required by law for higher education institutions to offer that. Exit counseling offers current students and graduates guidance on loan payments. It gives them important information on how to track their loans, who they will be interacting with during the process and how to defer loans. The financial aid adviser also said students at Rhodes College who receive the HOPE Scholarship get some relief on their tuition payments, so many of them do not need to take out loans. Less than half, or 46 percent, of Rhodes students take out loans for the cost of their education.
The Institute of College Success and Access releases annual reports about debt for bachelor’s degree graduates. The most recent report, “Student Debt and the Class of 2017,” ranks Tennessee in the No. 10 spot of the top-10 low debt states, with the average debt for 2017 being $25,252 as opposed to Connecticut, which has the highest average with $38,510. The report also found that there was a one-percent increase in debt for 2017 as opposed to 2016. The slow growth is a sign that student debt in the state of Tennessee is on the path to becoming more manageable.
The Institute of College Success and Access report stressed the importance of investing in student aid. It also stated that lower income graduates face a larger financial burden than middle and higher income graduates. They have a higher chance of leaving college with debt and will likely have more of it.
Wilson Vaughn, a sophomore at the University of Memphis, said the HOPE Scholarship helps with this.
“I think it’s good that the growth of student loan debt has gone down, but I think that individual states like Tennessee with the HOPE Scholarship will do a better job of improving that statistic than the federal government,” Vaughn said.
Hailey Hanson, a junior at the U of M, said the information was shocking.
“I’m shocked that Tennessee ranked in the top-10 lowest states for student debt,” Hanson said. “It’s great news, and I agree that investing in student aid is needed because we are potentially investing for the future of the whole community.”
Hanson said she thought the debt she has is substantial, but not regrettable.
“I feel like it will likely take me a while, but it’s well worth the debt,” Hanson said.
