No college degree, but debt is the ‘worst result’

Hope Odell

Obsolete payments can cause college students to suspend or drop out of classes altogether.

According to the Education Data Initiative, 38% of college dropouts nationally said it was due to the financial crisis of 2022.

“The worst result is when a student comes in and starts college and goes into debt, but does not have a degree,” said Bob Murphy, chief policy officer for the Michigan Association of State Universities.

This stress can come from small but increasing unpaid expenses such as orientation and graduation fees.

Allison, a senior studying psychology at State University of Michigan, pays for Allison Manor College.

Costs are a “constant concern,” Manor said.

“At such a young age, navigating thousands of dollars in debt or bills every semester is much harder than the classes you take,” she said. “Anxiety really makes it impossible for students to focus on what’s coming here, and that’s learning.”

According to the Education Data Initiative, 14.7% of Michigan student debtors are under $ 5,000.

According to the Institute for College Access and Success, in 2018-19, 59% of Michigan college graduates had student loan debt, ranking Michigan 17th nationally.

To prevent dropouts and dropouts, the University of Auckland has partnered with other colleges to make the overall cost of education more transparent and to help students who have dropped out of school for financial reasons resume their education.

“Oakland is proud to have no fees,” Murphy said.

Colleges and universities may exclude students with unpaid fees from enrolling for the next semester or year.

In 2006, mandatory fees such as application fees were waived by Auckland, and in 2008 all other fees were waived. Tuition is the only bill currently available to Auckland students.

“There are many families who say they’m shocked to find fees at other universities in Michigan,” said Don Aubrey, vice president of enrollment management in Auckland.

Since the fee waiver in 2008, Auckland’s graduation rate has increased from 46% to 54%, according to the Department of Education.

“I think a no-fee policy combined with strong academic programs and strong student services will contribute to the success of the University of Auckland,” Aubrey said.

Auckland also has a Golden GriceLise Graduate Program to help students who have dropped out of school for financial reasons.

If a student stops taking classes and has a debt of less than $ 1,500, Auckland will work with the student to find a working payment plan or provide a micro grant to help the student repay the loan.

Works with Auckland, University of Michigan-Dearborn, Wayne State University, and Henry Ford Community College on the Detroit Drives Degree initiative. Through the program, students with arrears at one of those four schools can resume their education at another, and that school will work with them to pay off the debt.

“There are a lot of people trying to welcome back students who dropped out for financial reasons,” Aubrey said.

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