By Tess Sohngen, Senior Staff Writer
Miami University students incur more debt today than they did 10 years ago, but less than the national average. University officials say the addition of winter term may be the reason for both the increase in debt and students' ability to graduate early.
The average student debt at graduation increased 34.2 percent over the past 10 years, below the Ohio and national average increase of 53 percent and 56.1 percent, respectively. In 2015, the average Miami student's loan debt at graduation was $28,887, according to Brent Shock, director of Student Financial Services.
"I think it's very possible we will see loan debt increase because of the winter term," said Shock. "We're still trying to get a better understanding of that."
Shock said that the winter term, not the increase in construction around campus or Armstrong fees, could have contributed most to the increase in student loan debt since federal aid only apples to spring and fall semester. However, the addition of winter term may also keep student loan debt at bay by allowing students to graduate sooner.
Shock said winter term allows students to stay on track to graduate on time or early, allowing for graduates to start making money and paying off loans earlier.
Dave Sauter, Miami's registrar and alumnus, agrees with Shock that winter term is a smart financial option to consider, noting that approximately 100 students graduated after the 2016 winter term after fulfilling a class or thesis requirement. Sauter said paying for three or six credits over winter term is faster and cheaper than paying for spring semester to graduate in May.
"The main issue is making college affordable," said Natalie Roberts, the president and founder of Miami's No Labels, a bipartisan, nonprofit organization that encourages students to sit down and discuss national political issues and solutions.
Graduating with limited student debt is especially important to Deanna Ponzani, a high school senior from the Cleveland area. Miami is among the top two universities she is considering for next fall.
"I'd like to go to law school after, so if I have to go to a cheaper undergrad school so I don't have a lot of debt, that's a big factor," said Ponzani.
While Ponzani received a merit-based scholarship from Miami based on her ACT score, she said she needs more scholarship money to feel comfortable choosing Miami over her other options.
Miami undergraduates who receive need-based financial aid make up 36.6 percent of full-time undergraduates and average $8,754 in need-based scholarship or grant award, according to the U.S. News & World Report.
Miami's financial aid department offered grants to students registered for the winter term based on their financial need "to make the winter term a financial possibility for all Miami students," said Shock.
The amount of grant money given for the first winter term was $400,000, and that number more than doubled to $900,000 for the recent winter term.
The past winter term saw a 10 percent increase in the number of students registered for winter term. As of Jan. 18, 4,916 students were registered, combining for a total of 17,606 credit hours for the winter term.
"I can't find a downside to it," said Sauter. "The only downside I've ever heard has been a couple parents saying, 'I don't know what to do with my son or daughter for six weeks.'"
He said the only negative to winter term is on the side of the faculty and staff who work through the transitions between the four terms, adding up to 47 weeks of instruction in session out of the 52 weeks in a year.