How Lesley is helping to make student loans manageable

Many people are concerned about the increasing volume of loans financing an undergraduate college education. Here at Lesley University, we take these concerns seriously. That is why we offer significant institutional aid (grants) so that students will not finance their Lesley education dominantly through loans. High debt levels are too great a burden for most young people beginning their careers. However, some college loan debt is manageable for most students who earn their degrees.

Individualized Financial Aid Packages
At Lesley we construct a financial aid package for each student that is customized to the student’s financial situation. We ask each student to complete the free, federal student aid application and we use that data to build the financial aid package. We always begin with any and all grants for which the student may be eligible: federal, state, local, private and Lesley grants. Grants are not paid back. We then consider work, including work-study options. The last piece of the aid package is loans, most often federal Stafford loans, that must be paid back.

Meeting Financial Need
Just over 75% of Lesley’s institutional grants for undergraduates support students with documented financial need. This investment in grants reduces the amount that students might otherwise borrow. We work carefully with each student to identify potential grants from all sources. Then we help students design a plan to integrate some hours of work, and the resulting income from that work goes into the equation. Finally, we advise and support students to understand all the details about loans. Our goal is to begin with the overall price of a semester or year at college, and reduce that price (through grants, work and loans) to an actual cost that is manageable for the student.

Average Loan Debt for Lesley Undergraduates 
The average federal loan debt for a Lesley undergraduate student who completed a degree program in 2012 was about $23,000. The average for all undergraduate program completers (including those who didn’t take a federal loan) was about $18,000. College graduates earn more than those without a college degree, both short-term and long-term. The monthly cost of these loans (about $270 per month) is much less than the gain in income for the college graduate. College grads also have lower levels of unemployment, vote more often, volunteer more hours, and have greater access to health care.

Low Loan Default Rates 
One measure of our success in helping our students manage loans is the low loan default rate for Lesley students. That default rate is currently 2%, about one-third the national loan default rate. We make sure our students know about every type of loan, what the payback options are, what the future payments will be and for how long, and what loan “forgiveness” options might be associated with particular loans – such as for teaching in a school in a poor community or engaging in public service for a specified period of time.

Meaningful Employment for College Graduates
The bottom line is that students must earn an income to be able to pay back their loans. We are always seeking to add more value to the degree experience so that it results in meaningful employment. Our curriculum integrates theory and practice; we use the Boston/Cambridge area for superb internships related to each of our majors (for the learning and the professional networking); and our students and alumni work with professional staff in our Career Resource Center to find productive positions in their fields. 

Genuine Return on Investment
Many students could never go to college without loans, but these loans must be manageable and understandable. Under these conditions, carefully managed loans can be a smart investment for a college graduate with a job on a career path.