Virginia’s highly educated workforce comes with a significant financial burden, as the state ranks fourth in the nation for average federal student loan debt.
About 12.5% of Virginia residents hold student loan debt, amounting to a staggering $44.3 billion statewide. Individual borrowers face an average debt of more than $40,000. This high debt level coincides with the state’s educational achievement, as Virginia boasts the fourth-highest percentage of graduate or professional degree holders in the country at 16.1%.
“College is so expensive, and there are so many resources out there,” says Jill Desjean, policy analyst for the National Association of Student Financial Aid Administrators (NASFAA).
Desjean emphasizes that potential students shouldn’t shy away from seeking financial assistance.
“One thing that’s really funny is you hear so much from people who say, ‘Oh, I don’t want to apply for financial aid because I don’t think I’ll qualify,’ and that’s hardly ever true,” she said.
Income-driven repayment plans offer one solution for managing student loan debt, basing payments on the borrower’s income rather than the total loan amount.
“I don’t like to scare people off with debt,” Desjean says. “You can always get an income-driven repayment plan, but it is perfectly understandable to hear someone say 30 or 40 or $50,000 in debt is simply just a number that I don’t want to have hanging over me.”
The debt burden remains significant even for those who utilize available aid.
Roanoke resident Rosemary Ann St. Jacques said, “I got federal student loans, and I got the Pell Grants because I was under the line, and I was able to get FAFSA. And, I have $54,000 in debt.”
Certified Financial Planner Maynard Keller points to various debt relief programs that borrowers should explore.
“There are a number of programs out there that everyone should be aware of. One of those is the public service loan forgiveness,” said Keller. “For example, if you graduate from college and work for a government or non-profit agency or non-profit organization, there are loan forgiveness programs in place to help with that.”
St. Jacques said, “We feel a little stressed and maybe we would have chosen different avenues had we been aware before we were accepted and had shown up to college.”