THE LEDGER-STAR
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, December 1, 1994 TAG: 9412010647
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY AMY WALLACE, LOS ANGELES TIMES
LENGTH: Short : 39 lines
Borrowing to pay for college is rising dramatically across the country, with more students assuming more debt than ever before, according to a preliminary report from the American Council on Education.
Based on a survey of more than 300 institutions of higher learning, the report found that from July 1993 through June 1994, the nation's students and parents borrowed 41 percent more than during the previous 12-month period.
``To our knowledge, this is the biggest jump that we've seen in history,'' said David Merkowitz, a spokesman for the American Council on Education who lamented ``a breaking of the traditional bargain in higher education: that the current generation will help pay for the education of the next generation.''
``It's a major structural change in the way we pay for college in the United States,'' said Patrick Callan, executive director of the California Higher Education Policy Center. He called the report's findings ``cause for significant concern.''
While the report could not determine the average debt level per student, analysts speculated that it, too, is rising sharply. They warned that once today's students graduate and begin trying to repay their loans, indebtedness will force them to make choices they might not otherwise make.
``What kinds of decisions will these people make about graduate school if they already have huge debts? Will they (feel free to) choose low paying professions like teaching? Will they be able to buy houses or cars? What will be the effect on the economy?'' asked Merkowitz, who said growing student debt has ``very severe implications for the future of this country.''
KEYWORDS: COLLEGE UNIVERSITY by CNB