Ball State University students consistently over draw college loans, which makes it harder to repay their debts after graduation, according to financial experts.
Bob Zellers, director of financial aid and scholarships, said most Ball State students use a loan program to pay for their education. He said 75 percent of all students at Ball State also use financial aid, which is a program that is not just for loans but also for government aid.
Ball State partakes in Title IV Federal Loans, which were created under the Higher Education Act, Zellers said. The loans consist of direct subsidized and unsubsidized Stafford loans, the PLUS loan and the Perkins loan, he said.
Ball State also offers the Aldridge Loan, which is an institutional loan, he said. Ball State students also contact their local banks that can provide them with private loans to help them with their school expenses, he said.
Chris Bosworth, personal banker for Chase Northwest Plaza, said the bank provides college students with three different types of loans, said.
Chase provides students with the federal Stafford, Parent PLUS and private loans, he said. Students can also apply for these loans online, over the telephone or can come into the office for assistance, he said.
Chase will let the students know whether they have been approved for the loan within in 24 hours, he said. Bosworth said that the hotline number for Chase can help lead students and parents to the loan they should withdraw.
It can take students up to 20 years after graduation to repay their college loans, unless the loans have been deferred, Bosworth said.
Chase's branch employees can also help students create their own budgeting program, he said. Students need to learn how to budget their money so they do not go broke after withdrawing a loan, he said.
Zellers said students who get involved in federal programs have to go through interest counseling and then through exit counseling when leaving the university.
Exit counseling helps students and graduates understand what type of payment options they have to repay their loans, he said.
"There are deferments and forbearances, and students need to know what their options are," he said. "They absolutely do not want to default on their loans at all possible."
The most common payment program is the standard repayment option, Zellers said. The standard repayment option will help graduates repay their debt within 10 years, he said.
The university advises students to avoid borrowing, and if borrowing is necessary, only borrow what is needed, Zellers said. The advisers in the Financial Aid Office will help students budget their money, Zellers said. It is a good idea for students to monitor and budget their loans, not just from one year, but year-to-year, Zellers said. Monitoring money from year-to-year is important, because students will know where their money is, where it is going, how much they have borrowed and where they have borrowed it from.
Ball State provides a personal finance class to help students learn how to budget and save their money, Zellers said.
The university also has a student-taught program called Money Matters, he said. The program teaches students how to manage their money and how to use a credit card correctly, Zellers said. The program has not begun, but there is a home page on the Ball State Web site, he said.
The program should help students avoid a great deal of debt, while allowing the student to borrow only what is needed for the year, Zellers said.
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
