Wisconsinites owe $23.6 billion in student loans, and thousands of Wisconsin borrowers are in default. But Carole Trone, executive director of the Wisconsin Coalition on Student Debt, doesn’t want those kinds of numbers to scare students away from college altogether.
“I think there is justifiable concern about student loan debt,” said Trone, whose group helps Wisconsinites figure out costs before, during and after college.
“But we are seeing signs that many more students are hesitating or choosing not to pursue postsecondary education because they figure that’s the only way to avoid student loan debt,” Trone said. The problem with that plan, she said, is that studies suggest most of the jobs of the future will require some sort of credential beyond a high school diploma.
She’d like students to hear a different number: $33,000. “In Wisconsin, the average amount of student loan debt that an undergraduate takes on is about $33,000 for someone who completes their degree. So when you hear the stories of huge amounts of debt, those things happen. It’s heartbreaking to see those stories, but it’s not the norm.”
Trone talked with Wisconsin Watch about what students can do at every step in their education to reduce what they borrow and increase the chance they’ll be able to pay it back.
File your FAFSA
The Free Application for Federal Student Aid was simplified in 2024, making it easier for students to apply for Pell grants and federal financial aid.
“It has finally, truly gotten better, easier, simpler — at long last — so it is completely worth it to do it,” said Trone. “It keeps your options open.”
Forget the ‘dream’ school
“I caution people about talking about their ‘dream college,’” Trone said. Instead, she urges students to make a list of things like how much they’re willing to pay, what kinds of programs they’re considering and the typical salaries for those professions.
Then, she recommends students use the Department of Education’s College Scorecard website to compare schools.
“Not all programs cost the same, and not all programs are worth the same … You want to look for colleges that have strong graduation rates. You want to see how many students get financial aid. You want to see what the net cost of attendance is,” Trone said.
Meet with an adviser
Sometimes students end up paying more for school because the school doesn’t accept their prior credits, or because they need a class that’s seldom offered.
“If you’re trying to bring credits into that institution, talk to someone about that. Don’t just assume that those credits will transfer,” Trone said. “Try to map out what classes you need to take, and meet with your adviser and figure out when those classes are being offered.”
Limit loans
When colleges send financial aid offer letters, they list the maximum amount the student can borrow. But students have the option to borrow less or decline loans altogether, and they can make those decisions until around the time they’re enrolling in classes.
“Make sure that you’re not borrowing more than you truly need. You can decline a loan offer, you can take only part of it, and you can make that decision basically right up to the fall enrollment or spring enrollment time,” Trone said. “Make sure that you have really thought about do you actually really need to borrow this money, because you’ll be paying it back with interest.”
Finish your degree
Student loans come due whether a student graduates or not. Those who don’t are more than twice as likely to end up in default, according to research by the Pew Charitable Trusts.
“The most important thing that you can do to be able to repay any loans you take out is to finish your program,” Trone said. People leave school for all sorts of reasons, including family commitments and job changes. “A lot of that can be really unavoidable … but those are the borrowers that often have the most difficulty in repaying their loans.”
Update your contact information
One simple step can help keep borrowers on track: signing into studentaid.gov to update their contact information regularly.
“After you’ve left college, that’s the time when lots of folks are moving around or changing email addresses,” Trone said. “When things start coming due or there’s changes, they need to be able to reach you.”
Natalie Yahr reports on pathways to success statewide for Wisconsin Watch, working in partnership with Open Campus. Email her at nyahr@wisconsinwatch.org.
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