According to the New York Federal Reserve Consumer Credit Panel, debt among 19-29 year old Americans exceeded $1 trillion at the end of 2018, exceeding mortgage debt. Pretty depressing, right? In fact, American student debt has increased in the last 30 years, and with tuition rates set to rise, this debt just might keep growing. According to Kent Lutz, an economics professor at the UC Blue Ash, this debt has grown to be so high because “there has not been adequate stewardship of the financial resources entrusted to institutions of higher learning and students have been singled out to carry the burden.”
However, by just being at UC Blue Ash, students are saving about $5,000 on tuition each year, compared to UC Uptown students. This is a great start to minimizing their student debt load. Tuition at Blue Ash is currently $6,010 per year, while tuition at Uptown Campus for the 2018-2019 school year rang in to be $11,000. (This amount at UC Uptown is expected to rise for the 2019-2020 school year and will be set by the UC Board of Trustees at the end of the month. You can read more about the UC tuition increase here.)
Lutz offers financial workshops to UCBA students that cover everything from budgeting and debt management to taxes and investments. He believes that students can be successful in managing their dent by creating and maintaining a budget. “Along with that, start what I call a ‘Pay Yourself First’ behavior, which means before you allocate any financial income, you have to always be sure to start setting aside a portion of all income you earn,” he explains. Basically, having a plan for your money and saving every dollar you can are crucial steps to financial success.
However, above all, Lutz believes that students should focus on their education first. Student debt can even necessary to many, and it can be a worthwhile investment in oneself if managed wisely, assuming that the student finishes their degree.
