Today’s guest post is by Bob Collins, VP of Financial Aid at Western Governors University.
WGU students graduate with half the debt of their peers nationwide
Education is linked to the eradication of poverty and the promotion of prosperity, but evidence that college students graduate with excessive debt continues to pile up year after year. With student interest rates at their highest in the last decade, our current economy serves as a reminder that students should make informed decisions to borrow wisely.
Western Governors University (WGU) was established in 1997 with a mission to expand access to high-quality, online and affordable higher education. WGU serves more than 150,000 students nationwide and has more than 340,000 graduates in all 50 states.
At WGU, we believe paying for college should be simpler for students. For the past 10 years, I have led WGU’s Responsible Borrowing Initiatives program (RBI) as the VP of Financial Aid. The principles of the RBI program encourage students to borrow only what they need, and as of 2022, the program has resulted in WGU students graduating with half the debt as the national average.
Recent conversations surrounding student loan debt have called the value of higher education into question. However, colleges are essential in preparing individuals for the workforce and addressing workforce demands in today’s rapidly evolving economy.
WGU graduates, on average, increase their income by $22,200 within two years of graduation–an impressive ROI. The evidence is clear: WGU’s self-paced, competency-based, and affordable education pays off in the form of less debt and higher income after graduation. It’s a testament to the value of WGU’s innovative approach to education, and I believe others in the higher education community must take note and follow suit.
As national student loan debt rises, significant reform is needed to provide more transparency and increase all stakeholders’ accountability, driving toward better student outcomes. To effect long-term change, the higher education community must embrace innovation that drives down costs, as well as helps students and families make informed borrowing decisions.
Thorough research should help inform a student’s decision to borrow for college. As a higher education financial aid professional for more than 40 years, I have four tried-and-true tips to help students borrow
responsibly:
- Research your college choice and program of study. Search https://collegescorecard.ed.gov to find the right fit for you by comparing colleges and their programs of study, estimated cost of attendance and student outcomes, including median earnings and median debt by program of study for prior students that graduated.
- Explore your method of payment options. Look into state and federal grants, institutional and external scholarships and gift aid, installment payment plans, and lastly, federal and/or private student loans.
- Identify institutions that utilize self-service technology that provides all this useful information in one place for the best user experience. Interactive software exists to make the process fun and engaging.
- Track what you owe and plan accordingly. Borrowers should only borrow what they need, not the maximum allowable.