Student loan debt has impact on state's economy, Minnesota survey finds

The rising cost of college tuition affects more than just students, according to a new survey of graduates from Minnesota state universities.

Of the 40 graduates who completed the survey for the Minnesota State University Student Association, the average student loan debt is $30,682.

About one-third of survey participants graduated from Minnesota State University Moorhead.

Survey respondents are paying back an average of $303 per month and estimate it will take an average of 15 years to pay off the debt.

Jered Weber, a 2008 MSUM graduate who is now communication di­rec­tor for the student advocacy group, said the high debt prevents many graduates from contributing to the economy.

"A lot of our students aren't able to buy a house, aren't able to buy a car, make different career choices or maybe leave the state because there's a better career opportunity," said Weber, who served as MSUM's student body president.

The student organization is using the results of the survey to show legislators the impact of students taking on a greater share of the cost of higher education.

Some survey respondents said their debt has forced them to move in with their parents, go without health insurance or delay starting families.

"Even though it may seem like funding our public universities is a student issue, it actually affects our state as a whole," Weber said.

Weber, 25, had $35,000 in student loan debt after spending five years at MSUM for a degree in English and mass communications.

Because of the debt, Weber said he's unlikely to consider buying a house for five or 10 years, and he isn't able to save or invest as much as he'd like.

For Maria Camargo, one of the MSUM graduates who participated in the survey, the effect of student loan debt hasn't truly hit her yet.

Camargo, 23, graduated from MSUM last spring, but hasn't started with loan payments because she's now pursuing a master's degree in construction management from North Dakota State University.

"It's kind of looming over my head," she said.

Camargo, the first in her family to attend college, paid her own way through school. Even though she worked 25 hours per week, Camargo accumulated about $36,000 in debt for 3½ years at MSUM.

She attended the University of St. Thomas, a private college in St. Paul, for 1½ years before coming to MSUM and now will be in graduate school for two years.

Overall, Camargo expects her final student loan debt amount will be nearly $80,000.

"It's kind of scary to think about," she said.

For students who are currently in college, Camargo suggests they be conscious how much they're borrowing, and try to not take out the maximum.

"I think people need to keep an eye on how much debt they're piling on," she said.

Readers can reach Forum reporter Amy Dalrymple at (701) 241-5590

Online

The results of the Living with Student Debt survey are available at www.msusa.org . Graduates of Minnesota state universities can contribute their stories at www.msusa.org/debtsurvey .

1/2: Maria Camargo graduated from Minnesota State University Moorhead last spring, but hasn't started with loan payments because she's now pursuing a master's degree in construction management from North Dakota State University. "It's kind of looming over my head," she says of her student loan debt. Dave Wallis / The Forum

2/2: Says $35,000 in student loan debt will likely delay his buying a home for 5-10 years