College students' debt load will grow heavier : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

CHAPEL HILL (MCT) -- Jacob Pinto had a full ride to UNC-Chapel Hill, until he lost his scholarships and grants this year because his parents made more money and the state cut funding to UNC-CH.

"I was planning on traveling after I graduated," Pinto said Friday. "I was going to be debt free, no worries, but now I've got to make sure that debt is gone before I go anywhere."

State grant funding was cut 20 percent this year, Shirley Ort, associate provost and director of scholarships and student aid, told the UNC-CH board of trustees this week. In the future, more students will need to borrow money, and they will need to borrow more than they have in previous years, she said.

UNC-CH prevented the cuts from affecting most students by using about $4 million from a reserve fund to offset them, according to Ort.

However, with the elimination of federal summer Pell grants in 2012 and possible changes in how the state distributes grant funding next year, UNC-CH could lose a total of $8.4 million in grants next year.

Pinto, a psychology major, considers himself lucky. With his parents' help and working during school and after he graduates, he is confident he can pay off his student loan within a few months.

"In other circumstances, I would have had to drop out and I wouldn't have gotten my diploma after three years," he said.

While Ort expects the number of students that have to borrow to rise from 31 percent of graduating seniors to about 40 percent in the coming years, UNC-CH students currently have one of the lowest amounts of debt when compared with students at peer institutions.

The 31 percent of May 2010 graduating seniors at UNC-CH borrowed an average of about $16,000.

The 46 percent of students at the University of Michigan at Ann Arbor borrowed almost $28,000. The 63 percent of students at the University of Minnesota borrowed a little more than $27,500.

If UNC-CH raises tuition, some of that money could go toward student aid, but that isn't something Ort is counting on.

An increase in private funding could help make up some of the lost grant money, but it's likely that more students will still have to get loans, Ort said.

For Natalia Perez, a freshman at UNC-CH who is currently receiving $15,000 in grants, it's worrisome to think about UNC-CH raising tuition or having to take out student loans if she loses some grants next year.

"I don't want to have to worry about paying back money after I graduate. I want to it to be paid off year-by-year," she said.

igliigli

September 24, 2011 - 5:50 am EDT

UNC has raised and raised and raised student tuition and fees to cover the sports teams' financial losses. Get rid of the sports teams and that will lower student debt.

Interested

September 24, 2011 - 12:43 pm EDT

If absolutely ALL fees (as opposed to just the portion that goes to the sports) were eliminated it would save a student less than $1000/year. Certainly, that would be some savings to students. But not ALL fees go to athletics and therefore not ALL fees could be eliminated.

A look at UNC-CH:
2007-2008 Athletic Fee $248.50
2008-2009 Athletic Fee $255
2009-2010 Athletic Fee $265
2010-2011 Athletic Fee $271

If the athletic fee was eliminated, the savings to a student who matriculated in 2007 and graduated in 4 years would have been $1040. Not the lion's share of the average student's debt. And my bet is the vast majority of students would prefer to keep the school's football, basketball, and other athletic programs. Not all students share your hate of all things athletic. A look at the stands would bear that out.

2fer

September 24, 2011 - 8:32 am EDT

UNC-CH's athletics fees are the lowest in the UNC System because football and basketball are such money makers. I'm not sure of this year's amount, because the UNC-CH athletic department has yet to respond to a request for public documents information I made last April - been busy with other matters, but in the past it was around $120 per student per year, while UNCG, having no sport that makes meaningful amounts of money, charged nearly $500. Whether any student should be required to pay any fee for intercollegiate athletics teams is the real issue.

The NC State Constitution says:
Article I
Declaration of Rights
Sec. 15. Education.
The people have a right to the privilege of education, and it is the duty of the State to guard and maintain that right.
(for the nitpickers who like to argue over privileges and rights, go figure this one out.)

Article IX
Education
Sec. 9. Benefits of public institutions of higher education.
The General Assembly shall provide that the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense.
("as far as practicable" is politicians' talk for "this is a joke, right?)

The General Statutes of NC say:
§ 116‑1. Purpose.
(a) In order to foster the development of a well‑planned and coordinated system of higher education, to improve the quality of education, to extend its benefits and to encourage an economical use of the State's resources, the University of North Carolina is hereby redefined in accordance with the provisions of this Article.
(b) The University of North Carolina is a public, multicampus university dedicated to the service of North Carolina and its people. It encompasses the 16 diverse constituent institutions and other educational, research, and public service organizations. Each shares in the overall mission of the university. That mission is to discover, create, transmit, and apply knowledge to address the needs of individuals and society. This mission is accomplished through instruction, which communicates the knowledge and values and imparts the skills necessary for individuals to lead responsible, productive, and personally satisfying lives; through research, scholarship, and creative activities, which advance knowledge and enhance the educational process; and through public service, which contributes to the solution of societal problems and enriches the quality of life in the State. In the fulfillment of this mission, the university shall seek an efficient use of available resources to ensure the highest quality in its service to the citizens of the State.
Teaching and learning constitute the primary service that the university renders to society. Teaching, or instruction, is the primary responsibility of each of the constituent institutions. The relative importance of research and public service, which enhance teaching and learning, varies among the constituent institutions, depending on their overall missions. (1971, c. 1244, s. 1; 1995, c. 507, s. 15.17.)
(I see no mention of intercollegiate athletics in this.)

§ 116‑11. Powers and duties generally.
The powers and duties of the Board of Governors shall include the following:
(7) The Board shall set tuition and required fees at the institutions, not inconsistent with actions of the General Assembly.
(9) a. The Board of Governors shall develop, prepare and present to the Governor and the General Assembly a single, unified recommended budget for all of the constituent institutions of The University of North Carolina. The recommendations shall consist of requests in three general categories: (i) funds for the continuing operation of each constituent institution, (ii) funds for salary increases for employees exempt from the State Personnel Act and (iii) funds requested without reference to constituent institutions, itemized as to priority and covering such areas as new programs and activities, expansions of programs and activities, increases in enrollments, increases to accommodate internal shifts and categories of persons served, capital improvements, improvements in levels of operation and increases to remedy deficiencies, as well as other areas. The president may present to the General Assembly an updated estimate of tuition, fees, and other receipts by June 15 of each year to be included in the budget for the following fiscal year.
(Nothing about ahtletic fees here.)

§ 116‑33. Powers and duties of the boards of trustees.
Each board of trustees shall promote the sound development of the institution within the functions prescribed for it, helping it to serve the State in a way that will complement the activities of the other institutions and aiding it to perform at a high level of excellence in every area of endeavor. Each board shall serve as advisor to the Board of Governors on matters pertaining to the institution and shall also serve as advisor to the chancellor concerning the management and development of the institution. The powers and duties of each board of trustees, not inconsistent with other provisions of this Article, shall be defined and delegated by the Board of Governors. (1971, c. 1244, s. 1.)
(Included just so everyone knows that the BoT is for show and political coverage.)

§ 116‑34. Duties of chancellor of institution.
(a) The chancellor shall be the administrative and executive head of the institution and shall exercise complete executive authority therein, subject to the direction of the President. He shall be responsible for carrying out policies of the Board of Governors and of the board of trustees. As of June 30 of each year he shall prepare for the Board of Governors and for the board of trustees a detailed report on the operation of the institution for the preceding year.
(b) It shall be the duty of the chancellor to attend all meetings of the board of trustees and to be responsible for keeping the board of trustees fully informed on the operation of the institution and its needs.
(Notice that the UNCG BoT had no idea what recent budget cuts would mean, even after they were implemented and the academic year had started. The BoT person who was quoted in the N&R about the BoT's lack of involvement and understanding was a founder of the Spartan Club, a major athletics supporter, and clueless about how the university raised money beyond legislative appropriations.)
(c) It shall be the duty of the chancellor to keep the President, and through him the Board of Governors, fully informed concerning the operations and needs of the institution. Upon request, he shall be available to confer with the President or with the Board of Governors concerning matters that pertain to the institution.
(d) Subject to policies prescribed by the Board of Governors and by the board of trustees, the chancellor shall make recommendations for the appointment of personnel within the institution and for the development of educational programs. (1971, c. 1244, s. 1.)

§ 116‑36.2. Regulation of special funds of individual institutions.
(a) Notwithstanding Chapter 143C or any provisions of law other than Article 5A of Chapter 147 of the General Statutes, the chancellor of each institution is responsible for the custody and management of the special funds of that institution. The Board shall adopt uniform policies and procedures applicable to the administration of these funds which shall assure that the receipt and expenditure of such funds is properly authorized and that the funds are appropriately accounted for. The special funds of individual institutions regulated by this section are appropriated and may be used only as authorized by this section.
(b) As used in this section, "special funds of individual institutions" means:
(1) Moneys received from or for the operation by an institution of its program of intercollegiate athletics;
(2) Moneys held by an institution as fiscal agent for individual students, faculty, staff members, and organizations. (1977, 2nd Sess., c. 1136, s. 31; 1983, c. 913, s. 19; 2006‑203, s. 46.)
("Special funds" is the long and the short of it. No mention here of teaching, education, learning, or any other of them high-falutin' words.)

§ 116‑40.20. Legislative findings.
(a) The General Assembly finds that The University of North Carolina and its constituent institutions is one of the State's most valuable assets. The General Assembly further finds that to provide the best benefit to North Carolina, the constituent institutions of The University of North Carolina need special budgeting flexibility in order to maximize resources, to enhance competitiveness with other peer institutions regionally, nationally, and internationally, and to provide the strongest educational and economic opportunity for the citizens of North Carolina.
(b) To ensure the continued preeminence of The University of North Carolina and its constituent institutions, it is the intent of the General Assembly to strengthen and improve these assets. The General Assembly commits to responsible stewardship and improvement of The University of North Carolina and its constituent institutions as provided by this Part. (2001‑424, s. 31.11(a).)
(Just a reminder to the current General Assembly of what they have so royally screwed up.)

§ 116‑40.22. Management flexibility.
(c) Tuition and Fees. – Notwithstanding any provision in Chapter 116 of the General Statutes to the contrary, in addition to any tuition and fees set by the Board of Governors pursuant to G.S. 116‑11(7), the Board of Trustees of the institution may recommend to the Board of Governors tuition and fees for program‑specific and institution‑specific needs at that institution without regard to whether an emergency situation exists and not inconsistent with the actions of the General Assembly. Any tuition and fees set pursuant to this subsection are appropriated for use by the institution. Notwithstanding this subsection, neither the Board of Governors of The University of North Carolina nor its Board of Trustees shall impose any tuition or mandatory fee at the North Carolina School of Science and Mathematics without the approval of the General Assembly.

§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
(a) The Board of Governors of The University of North Carolina shall fix the tuition and fees, not inconsistent with actions of the General Assembly, at the institutions of higher education enumerated in G.S. 116‑4 in such amount or amounts as it may deem best, taking into consideration the nature of each institution and program of study and the cost of equipment and maintenance; and each institution shall charge and collect from each student, at the beginning of each semester or quarter, tuition, fees, and an amount sufficient to pay other expenses for the term. (End of citing from NC General Statues.)

The fees students are forced to pay to support intercollegiate athletics are ultimately the responsibility of the politicians who make up the Board of Governors. Local Boards of Trustees are rubber-stamp, CYA protection for the incompetence of individual school administrations. Because no student receives academic credit for playing on athletic teams, the teams serve no academic purpose, and the legal basis for extracting fees to support the teams should be challenged by someone with the time and money to do so, which of course would not be a student who has to borrow money to stay in school or who intends to have time to pass a decent load of courses. The entire multi-million dollar business enterprise of professional intercollegiate athletics in NC rests on what is not said in our state laws more than what is said. Our state constitution is simply ignored. I suspect that the same could be said for each of the 50 states.

retiree

September 24, 2011 - 10:16 am EDT

College can be almost free . . . if students go into the military first. I served 4 years then went to college and got my degree paid for through the G.I. Bill. Sadly, many students today aren't as supportive of our country's values or our military and probably would have a hard time accepting the personal discipline the military provides.

September 24, 2011 - 12:50 pm EDT

Clearly, you are not very familiar with the situation today. We know children who graduated in 2008 and 2009 that have been on wait lists that long to enter the military. To say that "students today aren't as supportive . . ." demonstrates a prejudice rather than a knowledge.

History demonstrates that when the economy is strong, the military has a more difficult time filling its ranks and when the economy is weak the military can be much more selective with even highly qualified young adults waiting long periods to get accepted. Even college graduates can't just walk in these days.

goodtoknow

September 24, 2011 - 11:02 am EDT

It's my opinion that Mr. Pinto will have to get more degrees in psychology before he can become independent. Psychology is one of the largest graduating classes and really isn't specific enough to be an attraction to employers.

Brutarius

September 24, 2011 - 2:45 pm EDT

Think again, goodtoknow. The government LOVES sociologists/psychologists and will be hiring plenty to separate the wheat from the chaff, i.e., the individualists (who they hate) and the collectivists (who they love).

itsallaboutyou

September 25, 2011 - 8:50 pm EDT

What's happening with the Schools tuition costs is what is happening in this country. Benefits and retirement packages for the state employees are not sustainable and must be reviewed. Someone who works for 20 years in the system, should not get to retire and receive checks indefinitely until their deaths which could be a very long time, from say an average of 50 years of age or so.

I know people who have worked 40 plus years for large corporations and don't get the kind of benefits these state employees are receiving. The reason they don't is because businesses know that these huge expenses are not sustainable.

The UNC college system has received and continues to receive and enormous amount of money from the tax payers. They simply are going to have to run things more efficiently from an entitlements standpoint, just like the state and federal government.

People need to start taking their own responsibility for their retirement instead of looking for the government to provide that for them.

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