Students see loans as necessary evil

Robert Folger, a graduating senior majoring in history, is supposed to start paying back the $20,000 he took out in student loans. Folger, however, will get a reprieve because he is going to graduate school. His payments will be deferred until he graduates again.

"It's kind of scary looking $20,000 in the face, but debt is a funny thing - it seems like everyone's in it," Folger said.

Since 1991, the amount of money students receive in loans has almost tripled. In 1991, University of Arizona students borrowed $33 million. The total in 1996 was $93 million.

"Students need to borrow only as much as is absolutely necessary," said Phyllis Bolt Bannister, director of the UA's Office of Student Financial Aid.

The increase is probably a reflection of the economy and the increasing cost of tuition, Bannister said.

"It was worth it to take out student loans," said Brian Gibbons, a senior majoring in economics. "I didn't have a choice. I could either take out loans or not come here."

Last year, 24,863 UA students received loans. After four years, the average UA borrower can expect to pay back about $16,882, Bannister said.

The monthly payment on a loan depends on the amount of the student's debt, the length of the repayment period and the interest rate. For a $15,000 loan the monthly payment is about $160 over a 10-year span.

"I am essentially paying the interest on the loans," Folger said. "It's kind of pricey, almost like a second rent. I will have to pay about $165 a month until they're paid off."

Deferments are sometimes given to students if they are unable to pay the money back right away for reasons such as economic hardship or going back to school.

"I still have plenty of time to worry about my loans," said Jennifer Howell, a sophomore majoring in business. "I am not going to even start to think about it until I graduate."

"I think it was worth it to take out the loans," Folger said. "Yes it's scary, yes it's daunting, but what else are you going to do?"