Danelle Whittington, a psychology freshman, sits in Prescott Hall, studying while waiting for her class.
If it were not for the high costs of tuition and the fear of not being able to pay off undergraduate student loans at Gilford College in North Carolina, she said she would not be at LSU.
Nationwide, the percentage of students who borrowed money for their undergraduate education increased from 46 percent in 1992 to 68 percent in 2000, according to the National Center for Education Statistics.
“The cost of colleges is going up really fast in most states, and there is no way for federal student aid to keep up with the increased costs,” said Ken Redd, research director of the National Association of Student Financial Aid Administrators.
The percentage of undergraduates taking out loans at LSU has increased from 44 percent to 48 percent in the past five years, said Bernie Braun, administrative analyst for the Office of Budget and Planning.
Although fewer LSU students take out loans than students nationwide, the average amount of money LSU students borrowed was $17,490, close to the national average of $19,785.
Nevertheless, the reasons for the low percentages can be attributed to TOPS, said James Lajaunie, assistant director for loan processing at LSU.
“TOPS definitely has an affect as to how many students take out loans,” he said.
Legislation recently passed to increase the University’s tuition 3 percent for students, producing $2.6 million in revenues, said Robert Kuhn, associate vice chancellor for the Office of Budget and Planning.
TOPS covers the increase, but students not on TOPS have to come up with the extra money, he said.
Even though tuition increased 3 percent, the amount of money a student can take out for a federal loan has remained the same for the past 10 years, Lajaunie said.
Students such as Whittington said they came to the University because of the financial aid offered through programs such as TOPS instead of going to more expensive out-of-state colleges.
At the same time, Lajaunie said many students who would not have considered going to LSU because it was too expensive now can afford it with TOPS and other loans to cover living expenses.
“That’s $3,000 worth of loan money they do not have to borrow,” he said.
Jonathan Harrell, an international studies junior, said places like Tulane University and Centenary College did not give him enough money, so because he “didn’t want to pile up a large amount of debt, LSU seemed the most economical.”
Because of increased tuition costs, students have resorted to taking out private loans to pay for their tuition and living expenses, Redd said.
However, Redd said increased tuition is not the only reason for the increase in student loans. Students have more lifestyle options like living off-campus away from their parents and considering cell phones and computers necessities, he said.
Students who went to college 20 years ago lived with their parents and in dormitories, Redd said.
In the past, students who took out loans had no problem paying them off because they got jobs during a time of economic success, he said.
Now students graduating college are not guaranteed a well-paying job to pay off their loans because of the bad shape of the economy, he said.
He said he understands students’ concerns to be more frugal by going to places like LSU and not take out large loans, because they may not end up with a profitable job to pay them off.
The federal government would rather students resort to private loans instead of federal grants because it cannot keep up with the increased costs, Redd said.
However, Lajaunie said he does not recommend students take out private loans but recognizes the necessity for students with no other choice.
“Students have more needs now, and it takes a toll,” Lajaunie said.