Inspired by Education Sector’s Debt-to-Degree report, the Flint (Michigan) Journal looked at how much local students are spending per degree.
At Flint’s Mott Community College, dividing total degrees awarded by total undergraduate debt, yields a debt load of $10,171 per degree for 2007-09. That’s better than Henry Ford Community College ($22,691) but much higher than Southwestern Michigan College ($81.19).
Unemployment is high and incomes are low in Flint. “Some students take longer to get a degree, stopping and starting school several times because of jobs or families,” reports the Journal. “Some use college loans to pay life expenses as well as tuition.”
MCC Spokesman Michael Kelly said Genesee County’s economy is a big culprit. Many low-income students have their tuition covered by the Pell grant, but still take out loans for other expenses, he said.
“This is also being perceived as a revenue stream, as a source of income,” Kelly said of loans. “They’re taking out more money than education expenses require and using it for rent, groceries and car payments.
“They’re maximizing their debt.”
He said MCC officials last year tried to reduce the amount students borrowed but were told by U.S. Department of Education officials that that wasn’t an option.
Borrowing to pay living expenses is a very dangerous strategy for high-risk students. Student loans can’t be discharged in bankruptcy.
“If students are going to borrow money and pay those loans back, they need to get a degree,” said Education Sector policy director Kevin Carey. “The job market doesn’t give partial credit for going to college and not graduating.
Brandon Kreiner, 24, dropped out of University of Michigan at Flint after three years because of poor grades, then spent three years at Macomb Community College to raise his grade point average. Now back at UM-Flint, he’ll need three more years to complete a degree in secondary education. He expects he’ll owe $30,000 in student loans, despite receiving Pell Grant aid. “As long as I can get a job, I’ll be able to pay it back,” Kreiner said, “but the teaching industry isn’t great in Michigan right now.” Even if schools are hiring, a would-be teacher with poor grades will be competing with stronger candidates.
