By 2011, Gregory Brand Jr. had earned his bachelor’s and master’s degrees from Tennessee State University in mass communication and English, respectively. Despite receiving various scholarships and grants along the way, his student loan debt totaled about $30,000.
Brand, who now works as a journalist, says much of his tuition was covered by scholarships, but he needed additional money for other expenses, including housing and books.
“When I got to school [freshman year] I couldn’t believe it. Books were more expensive than anything I had imagined — $400 for a biology book, $200 for math.” Despite the sticker shock, Brand recalls being judicious about taking out student loans, unlike some students, who obtained excessive amounts.
Recent reports point to soaring student loan debt and high rates of default as impediments to financial security for millions of Americans. A number of colleges and universities have addressed the issue with initiatives ranging from financial fixes to bold new models of higher education.
The Institute for College Access and Success (TICAS) reported that student loan debt now averages $26,600, and the U.S. Department of Education announced that 13 percent of student loan borrowers are defaulting in the first three years of repayment. Within two years, 9 percent are defaulting.
A key player in these efforts is the Bill and Melinda Gates Foundation, which supports TICAS and other organizations and institutions tackling the student loan debt challenge. “There is a body of work that we are doing around the future of financial aid and how we can do the most with the limited financial aid dollars that we have,” says Josh Jarrett, the foundation’s deputy director for Next Generation Models. The Gates Foundation put the challenge to more than a dozen groups, he added.
“The piece of work that I focus on is how to use innovation and technology to help more low-income young adult students succeed in earning a post-secondary credential that’s going to give them more access to opportunities.” Jarrett says. “We’re looking at things from teaching and learning interventions to new business models and new designs of student experiences.”
