Although student debt at the University of Hawaii remains low, the amount of money borrowed by recent UH graduates is increasing at three to four times the national average.

The average debt of 2008 graduates at UH-Hilo and UH-Manoa is $15,156, a 21 percent increase from the debt carried by the class of 2007, according to an annual survey by the Project on Student Debt from the nonprofit Institute for College Access & Success. Nationally, the average student debt increased by 6 percent, according to federal data.

Hawaii college graduates still borrow less than students in any other state except Utah, and student debt here remains well below the national average of $23,200.

Even students who graduate from the private Chaminade University and Hawaii Pacific University, which charge higher tuition for residents than UH, have a lower debt than the national average for all colleges.

“;It's good news that Hawaii is at the low end,”; said Lauren Asher, president of the Institute for College Access & Success. “;The challenge is ahead, given the economic situation. States are struggling to cover their higher education system just as families are finding themselves with fewer resources to spend on college.”;

Karen Lee, the UH system associate vice president for student affairs, said students who graduate from UH campuses have historically had low debt, mostly due to the low tuition compared with other colleges and universities.

However, UH is in the midst of a six-year tuition increase that is more than doubling resident tuition at UH-Manoa.

The increase is designed to bring UH tuition in line with similar public institutions.

Lee said UH is dedicating 15 percent of the tuition increase to fund financial aid at the four-year UH institutions. But she acknowledged student borrowing has also increased as tuition has risen.

The number of students taking out loans is also rising—from about 28 percent in 2007 to 35 percent for 2008 UH-Manoa graduates.

Mark K. Ing, president of the UH-Manoa undergraduate student government, said he has taken out about $10,000 in loans to pay for his education and expects to go into more debt to pay for law school.

“;We have to look at more financial aid options, more state scholarships,”; Ing said.

UH-Hilo graduates, despite lower tuition than UH-Manoa, have a higher debt load.

Jeff Scofield, director of financial aid at UH-Hilo, said students there tend to come from lower income families than at UH-Manoa and generally have higher expenses for room and board. There is also a higher percentage of out-of-state students, who pay more in nonresident tuition.

Just three years ago Hawaii college graduates had the lowest student debt in the country. But debt rates began to rise with the class of 2007. The UH tuition increase went into effect in the fall of 2006.

Scott Stensrud, vice president of enrollment management at Hawaii Pacific University, said the private college tries to keep its tuition and financial aid package competitive with Hawaii's public universities.

He said HPU also pushes its students to graduate in four years, which reduces the total cost of a college education.

“;Debt is not just a function of cost, but it is also related to how long a student goes to school,”; said Eric Nemoto, associate dean of enrollment management at Chaminade University.

Both schools also market their financial aid packages.

Nemoto said the average financial aid award for a first-year student from Hawaii at Chaminade was $7,800 last year. Top students with higher grade point averages received about $9,800, he said.

The increase in student borrowing nationwide has implications for college access for the poorest students, Asher said. The neediest students are more likely to take out loans and borrow higher amounts than students who come from higher-income families, she said.