Student Loans
Why is it that so many prospective students take issue to student loans? Also, what are some good ways to overcome those objections during the Admissions process?
I always talk with students about their investments whether they are investing in a car with the hope that it does not broeak down or a house with hopes that they don't lose it an investment in education is yours and cannot be taken away.
Things are just so uncertain.
People are answering saying that they students if they feel they are worth investing in themselves etc.. But even if you answer yes - that doesn't mean you'll be able to pay it back in the time frame given or the amount per month.
I wish I had some suggestions for objections. I feel at this time education is too expensive for what you get paid when you graduate for most fields of study.
I agree. When I discuss with a student their funding options, I first address their desire to invest in their education and secondly, ask them what they know about financial aid. You are correct that many students have incorrect information that has been given to them from unreliable sources. I have an amazing financial aid analyst that I work closely with and with his assistance, the student is well informed of how Financial aid works and the benefits it will provide them.
Most students that take issue with student loans have fear about the unknown possibility of finding a career, or fear the responsibility of paying loans back.
During the admissions process, I ask them specifically why is investing in their future keeping them from education and the potential of having a better quality of life or having a career they really want, rather than (if it is the case individually)just a job they do not like or "barely getting by". I love Henry Ford's quote, "If you think you can or you think you can't, either way you are right".
Students may take issue with student loans because they have had bad experiences in the past or they have heard horror stories from others who have had student loans. Overcoming objectives comes through providing complete and accurate information to the student and arranging for knowledgable FA advisors to speak to the specific issues of the student.
Having a great relationship with our finanical aid deparment has helped me tremendously. They do an excellent job of explaining how finanical aid works. I feel 100 percent confident when a potential student meets with them.
i always look the students face to face and ask them do you think you are worth this investment. They have to feel like they are worth the amount of money they are going to be paying for school.
I think the best way to help a student get over the anxiety of student loans is to help them see it as an investment. They need to know that it is a positive investment and not something that is negative!
I agree, your Financial Aid Advisor can be your best friend. Every situation is different and helping your student realize they are unique in that aspect can help impact the rapport build.
I think it best to make student loans just one of the many possibilities for financing their education. Don't make it the 'best' or 'worst', but part of an array of possibilities
I always ask my student if they full understand everything they went over when they met with the financial planner. If I see any sort of uncertainty, I immediately take them back to the financial planner. It’s my job to be certain this student knows all the details about what they should expect from our school. If there is an area that I’m unable to speak on (financial aid) I make certain my student gets to see the person that can talk to them about it. There should never be any financial questions left in a prospective student’s mind, because college tuition isn’t cheap!
I always heard "Everything of value costs money". Education is of value.
I think you cover their concerns during admissions process. Also encourage them to educate themselves on what their loan amount will be verses the average pay in the field they're looking to get into.
I agree, our FA department does a wonderful job presenting the loan process. Students recieve counseling before they start, continously during the time spent as a student, and immediately on completion.
I think one of the main problems, especially in our current economic climate, is that so many prospective students know people who graduated with a large student loan debt but still can't find unemployment; it's a big unknown as to what outcome you may have. One of the things I address if a student brings this up is that there are various options with student loans (e.g. graduated payments, deferments, and forbearances) if a student is having trouble with payments. I just give a brief overview then let them know that their financial aid representative can give a more comprehensive overview and answer whatever detailed questions they have.
I agree with Kelly, that many students are afraid they won't succeed at repaying. And many prospective students I speak with are in their 30s to 50s and have accrued a lot of debt already. They're concerned that they will dig a deeper hole of debt.
The best way to overcome the student loan issue is to discuss the return on investment and talk about how the student is going to be better off in the long run by making that money back and doubling their income potential.
Educating students on the benefits of education and the investment in their future makes it easier for them to decide how they may pay for this investment--which could be loans.
I agree, I meet with students that are first in their family to even go to college. Some students that I’ve talked with have herd negative stories about financial aid through unreliable sources, so I always bring the Fin Aid advisor in to assure them that everyone situation is different when it come to this process.
