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POSTED: Sunday, November 02, 2008

College graduates in Hawaii take out fewer student loans and have lower debt after graduation, according to a recent report.

The Project on Student Debt found only 34 percent of Hawaii college graduates last year had student loans - the lowest percentage in the nation. Hawaii's Class of 2007 also had the second lowest the average debt - $14,911. Only Utah graduates had a lower amount of student loans.

But the report also found that debt is rising faster than starting salaries. The average debt is up 6 percent for Hawaii and the United States, while starting salaries for college graduates increased by only 3 percent between 2006 and 2007.

“;We are creating a generation of people who start off their working lives with a considerable amount of debt,”; said Lauren Asher, the associate director of the Project on Student Debt.

But Hawaii schools seem to be doing a good job of keeping costs low and providing financial aid, she said.

The average debt for Hawaii includes private and public colleges and universities.

Linda Johnsrud, the UH vice president for academic planning, said the reason student-loan debt is so low is because tuition at Hawaii's public colleges and universities is lower than in most other states.

Johnsrud said Hawaii's student-loan average could be even lower if more students took advantage of the financial aid that's available.

The university is in the middle of a six-year tuition increase and administrators are considering raising tuition for out-of-state students more quickly than currently planned.

Residents currently pay $5,952 per academic year at the flagship UH Manoa campus. Nonresident tuition is $16,608.

“;We're still low,”; Johnsrud said.

A College Board report last week said UH four-year and community college tuition had the biggest percentage increases in the nation this year, 16.4 percent and 12.8 percent respectively; but the College Board said resident tuition at public four-year schools remains $743 below the national average.

Last month, UH President David McClain said administrators are having preliminary discussions about accelerating the tuition increase for nonresidents, whose tuition at UH Manoa could rise to $23,232 as early as next fall.

Tuition is only part of the cost of college, Asher said. There's also room and board, books and transportation - costs that also are rising.

Costs also vary depending on how much financial aid a school provides.

“;Tuition is a sticker price,”; she said. “;It doesn't always represent what people are paying.”;

Justine Murphy, a marine science major from Washington, said she's applied for financial aid, but doesn't qualify. She expects to rack up about $40,000 in loans by the time she graduates.

Starting salaries in her field range from $25,000 to $30,000 a year. “;I'm not in it for the money,”; she said.

Still, Murphy said she's hoping her college degree will pay off in the long run.

“;I don't see myself making $25,000 to $30,000 for the rest of my life,”; she said. “;I'm here because I know I'm going to be better educated than I was when I came here.”;

Johnsrud said a bachelor's degree could mean a million dollars or more in income over the course of a lifetime compared with a high school diploma.

“;College is still a good investment,”; Asher said. But she said students should shop around and fill out financial aid applications so they can figure out the true cost of college.

Whitney Keller, another marine sciences major, said she expects to have between $15,000 to $20,000 in debt when she graduates.

“;Until I jump into the work force, I'm not going to understand how much of a problem it (student loan debt) will be,”; she said. “;I think I'm going to benefit from having an education enough to pay off my loans. I don't know if it will be true later.”;

Starting off in the hole

Hawaii student loan debt for 2007 graduates:

                                                                                                                                                                                                               

	Statewide	UH Manoa	UH Hilo	BYUH	Chaminade	HPU
Average loan	$14,911	$12,094	$13,952	$12,418	$22,263	$19,000
Graduates with debt	34%	28%	42%	36%	56%	37%

Average student debt:

High Debt States

                                                                                                                                               

Iowa	$26,208
New Hamshire	$25,211
Alaska	$24,970
Vermont	$24,329
Minnesota	$24,169

 

Low Debt States

                                                                                                                                               

Utah	$13,266
Hawaii	$14,911
New Mexico	$15,784
Wyoming	$16,005
Nevada	$16,448