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Entries in Students (2)

Thursday
Oct182012

Report: Burden of Debt Continues to Grow for College Students

JupiterImages/Comstock Images(NEW YORK) -- The burden of debt for college students who take out loans continues to rise, according to a new report out Thursday.  

“Two-thirds of new graduates had loans and their average debt was $26,600 dollars for the class of 2011,” says Lauren Asher, president of the California-based Institute for College Access and Success.

[ CLICK HERE TO SEE THE FULL REPORT ]

She says average debt for college students who graduated last year rose more than $1,000, compared to the year before.

“College costs have outstripped both family incomes and available grant aid now for quite awhile and that shows up in more and more debt,” Asher says.

By some estimates, student loan debt in the U.S. has grown to over $1 trillion.

Copyright 2012 ABC News Radio

Tuesday
Dec062011

Collegians Ditching Dorms for McMansions

File photo. iStockphoto/Thinkstock(MERCED, Calif.) -- At the University of California, Merced, one right of passage -- college students crammed into shoebox-sized dorm rooms -- is no longer.

For thousands of collegians, the life of the starving student has been traded in for the lap of luxury, many of them now living in sprawling new homes that were abandoned by foreclosures in one of the hardest-hit cities in the U.S.

These so-called "McMansions" are complete with spiral staircases, sparkling chandeliers and even Jacuzzis.

Third-year student Stephen Chang and five other engineering buddies live in a 3,300-square-foot house that has five bedrooms, four full bathrooms, a gas fireplace and a two-car garage. In the kitchen, there are granite countertops, a walk-in pantry and a stainless-steel sink and dishwasher. The dining room now serves as the Ping-Pong room and a place to store bikes. Chang even has his own bathroom.

They pay about $300 a piece a month -- about half as much as they paid to live in the school's dorms.

So many students have moved to these giant suburban homes that the university has shuttle buses to transport them to and from classes. Chang and Laird said that several other college students lived on their street and that the neighborhood was mostly made up of students.

"I guess it's kind of sad to see all these students living in such nice houses, when there could be families living there," Chang said, "[but] we are bringing income to this area, so better us rent these houses than have them just sit here and nobody rents them at all."

It's a win for the young university, which only has enough campus housing for about a third of its nearly 5,200 students.

"It's not a win for the people who lost their homes but it's a win for our students and for the campus that our undergraduate and graduate students have some really lovely places to live in," said Jane Lawrence, the university's vice chancellor for student affairs.

Some students' parents are swooping in and buying the homes as investment properties and the banks that are sitting on these vacant sites are benefitting. Even the neighbors don't seem to mind.

"They get in there and they're paying the rent and they're taking care of business," Michael Abarca said. "They are pretty quiet on the block."

Ellie Wooten, a real estate broker and the former mayor of Merced, said the university had greatly helped a community crippled by the foreclosure crisis.

"When you have students in [the homes], you don't have vandalism and people breaking in and that sort of thing," Wooten said. "There is a background check on their parents so the parents know they are responsible for their son or daughter living in this house. ... Businesses at large are doing a lot better because of the students."

Copyright 2011 ABC News Radio







ABC News Radio