Worcester Business Journal

September 18, 2017

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12 Worcester Business Journal | September 18, 2017 | wbjournal.com F OC U S B A N K I N G & F I N A N C E Doubled over in debt Colleges focus on aid as tuition continues to lead cost-of-living growth BY GRANT WELKER Worcester Business Journal News Editor T he fall semester brings a new class of college stu- dents to campuses, but also a new group of students likely to go deep into debt to pay for their classes. A college degree continues to pay for itself through a career of higher wages than those who don't have an advanced degree. But paying for college contin- ues to grow far faster than other costs. Total loan debt for people ages 25 to 34 doubled in the decade ending in 2015, according to California data analytics firm FICO. The number of graduates borrowing more than $50,000 also doubled, and the total amount owed by students is now $1.4 trillion, according to the Consumer Financial Protection Bureau. "There's a question over how much longer colleges and universities can keep raising prices," said John Hamel, the vice president for enrollment man- agement at Anna Maria College in Paxton, where tuition and fees this year topped $51,000. The graduating class of 2015 in Massachusetts had an average debt of $31,466, the seventh highest in the country, according to the Institute for College Access & Success. That leaves a spillover effect on the rest of the economy. FICO says those with active student loans are far less likely to also have a mortgage. Increased financial aid Certain Central Massachusetts col- leges are increasing how much they give in financial aid, even as costs con- tinue rising precipitously. Worcsester Polytechnic Institute has increased student aid by 9 percent in the past five years, totaling $78 mil- lion last year, Executive Direector of Student Aid and Financial Literacy Monica Blondin said WPI has added more financial liter- acy classes for students and in August announced $5,000 grants for students to conduct overseas projects. "We're extremely aware of the price Anna Maria College $51,020 $27,265 $41,900 77% Assumption College $54,661 $26,350 $53,600 73% Becker College $53,858 $29,940 $36,800 84% Clark University $44,050 $22,065 $42,800 56% College of the Holy Cross $64,420 $32,149 $63,100 52% Fitchburg State University $20,713 (in-state), $26,793 (out) $13,737 $40,500 71% Framingham State University $24,335 (in-state), $30,415 (out) $17,801 $45,000 64% Worcester Polytechnic Institute $65,046 $35,187 $80,300 58% Worcester State University $19,433 (in-state), $25,513 (out) $16,429 $44,800 53% Salary after Students with College Listed 2017-'18 price (including room & board) Adjusted cost* attending** federal loans *Average net price for financial aid recipients for in-state students **Median earnings for a student who received federal financial aid, 10 years after graduation Source: The colleges (listed prices), U.S. Department of Education College Scorecard A look at what Central Mass. colleges will cost this year, a comparison of sticker price to adjusted costs and other factors: Students at Worcester State University, where in-state commuters still pay under $10,000 in tuition and fees per year. The cost of a Central Mass. education P H O T O S / N A T H A N F I S K E

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