Student loan debt is the second largest amount of debt in the nation, the first being mortgages.  

The average student loan debt in America has increased by $14 billion dollars in the past year. There are two different loans provided for students. Federal student loans are either direct subsidized loans or unsubsidized loans. Subsidized loans do not gain interest while students are attending school and during the first six months after graduation, but unsubsidized loans are continuously gaining interest. Parent PLUS loans are another form of federal government loans, but place the parents in charge of the debt. Completing a free application for Federal Student Aid, FAFSA, allows students to apply for federal loans and grants. 

Another option is a private student loan, typically not federal, and issued by a lender such as a bank, school, credit union, or state agency. Sidney Biggerstaff, the financial specialist primarily focusing on loans at Wayne State College, recommends students do their research on private loans.  

“Make sure that they understand how interest rates work because with private loans interest rates are all over the place and very per lender,” Biggerstaff said. “My biggest thing would be they need to research making sure they understand that loans have to be repaid.”  

Terri Buck, the Director of Student Accounts on campus, provides services for other payment options. Nelnet is a third-party contractor that allows students to make payments.  

“If students do not have any federal loans, it can be pretty pricey,” Buck said. “The sooner you enroll the better because there is not a down payment or something required out of the process. There is an enrollment fee with Nelnet’s payment plan, but the sooner you enroll the more spread out the payment plan is.” Students can avoid further debt with the potential help of scholarships, grants, and creating a payment plan.  

“We will always encourage students, like if they don’t have federal loans, or there’s sometimes where the loans do not cover all of the costs for the semester, we encourage them to sign up for a payment plan with Nelnet,” Buck said.  

If students are unable to enroll in Nelnet, internal payment plans are available at Financial Services through the Student Accounts Office, located on the first floor of Hann.  

“If it is a reasonable plan I will approve it,” Buck said. “There have been a couple of times where I haven’t been able to approve it because with what the student explains, I know they cannot financially do it, and would put them more in a hardship.” If a plan is approved students complete an agreement with the college on a payment timeline. Payments are sent directly to the college through the student’s Wildcats Online.  

From the fall semester of 2023, there is a total of 102 private loans and 1,295 federal loans being utilized by students earning their bachelor’s degrees. A total of 148 undergrad students are using federal loans for tuition. As of this year, 56% of students at Wayne State College are paying for tuition with assistance from federal loans. Students earning a bachelor’s degree will graduate with around $19,000 in debt, an average $201 monthly payment. 

In comparison to other public colleges in Nebraska, 45% of students at the University of Nebraska-Kearney receive support from federal loans and estimate an average of $19,500 in debt. The University of Nebraska-Lincoln has a student federal loan estimate of 38% with a debt of $21,000 and the University of Nebraska at Omaha student’s norm is 32% of federal loans while graduating with around $19,000 in debt.   

Nationally, as of the year 2022, 48.9% of students pay for tuition through loans and are continuing to make payments 20 years after graduation. The average national Federal Student Loan debt is $37,574 and parent PLUS loans are estimated at $29,081. Although the numbers are large, 45% of students borrowing student loans owe less than $20,000.  

Before graduation, college students paying for tuition through federal or private loans can receive advice and assistance on their future payments through the Financial Services Office on campus.  

“We do send communications to students when they are getting close to graduation,” Biggerstaff said. “Then there is also a document, ‘exit counseling’, that just kind of walks over everything.” Students should know what to expect for payments once they graduate, especially loans with high interest rates.  

“They have to be prepared not only to pay back the amount that they received but also the interest,” Biggerstaff said. “That is kind of an adjustment for students if they are not preparing for that before they graduate.”  

Wayne State College students have the highest federal loan assistance in the state but graduate with lower debt than Nebraska universities. There are numerous ways the campus assists students in covering all tuition expenses such as scholarships or payment plans. Concerned students can also visit the financial services desk in the Hann building in preparation for debt after graduation.