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University gives bittersweet farewell to Tom Stafford Jessie Halpern News Editor
Tom Stafford, Vice Chancellor and Dean of the Division of Academic and Student Affairs, will be retire July 1 after 41 years of service to
North Carolina State University. After 30 years serving as Vice Chancellor, Stafford is retiring just before his 70th birthday. Replacing Stafford is Mike Mullen, who is currently the dean and the associate provost for the University of Kentucky’s division of undergraduate education and undergraduate studies. Mullen’s first day on the job here
will be Aug. 1. Stafford said the decision to retire now was based on several factors, both financial and personal. “When you hit a certain age you’re unable to increase your Social Security funds, and I’m about to hit that age,” Stafford said. “Forty-one years and 30 years as Vice Chancellor is a long time. I’ve got some other things that I want to do. I
Student loan interest rates set to change Increase to cost the average student additional $1,000 over life of loan. Arth Pandya Senior Staff Writer
The 2007 College Cost Reduction and Access Act that was signed by President Bush is set to expire July 1. This act was created to temporarily reduce the interest rate on subsidized Stafford loans to from 6.8 percent to 3.4 percent. Both Republicans and Democrats believe the subsidized Stafford loan rates should not be doubled and agree on extending the current rate for another year. However, the parties disagree on how to pay for the $6 billion bill. The U.S. Department of Education estimates 7.4 million students will borrow $31.6 billion in loans in the 12 months following July 1. On a national level, student debt has surpassed the $1 trillion mark this year, outpacing credit card debt among young adults and making it the second-highest form of debt behind mortgages, according to the Project on Student Debt, a nonprofit research and advocacy initiative. In 2010, two-thirds of college seniors graduated college with student loans averaging $25,250 while facing a job market with an unemployment rate of 9.1 percent. According to Krista Domnick, interim director of scholarships
and financial aid at the University, approximately 45 percent of enrolled undergraduates at N.C. State used student loans to finance their education in the 2011-2012 year, a 5 percent increase from previous years. “Rising costs and student debt levels are concerning and point to the need for additional education for students about responsible borrowing and minimizing the time enrolled until the degree is achieved,” Domnick said. “It is important for students to plan carefully for their college finances and only borrow the minimum that is needed.” Domnick stressed the importance of careful planning, especially when receiving refunds of financial aid for off campus expenses. “Remember t hat t he refund likely came from a student loan. Students should ask themselves, ‘would I have allowed myself to borrow a loan to pay for this item?’” Domnick said. However, rates of student debt at the University are lower than the national average. The average amount borrowed through federal loans for the class of 2011 was $18,126. In addition, the default rate of student loans at the University
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have a wonderful house and boat down the coast, and I’ve got four grandchildren. It seemed like the right time.” He may be leaving, but Stafford hasn’t had a change of heart. “I still believe N.C. State is the most important institution in the state,” Stafford said. “What we do here is more important to the state and economy than any other university in the state.”
Laura Wilkinson Deputy News Editor
Many recent college graduates eagerly entered the job field in May with varied success. As of May 2012, the unemployment rate for young adults ages 20-24 was 12.9 percent, and 12.1 percent for adults ages 1829. According to Michael Walden, a William Neal Reynolds distinguished professor and extension economist, the 12.9 percent rate is slightly lower than the rate for May 2011, which was 14.6 percent, but much higher than the 8.2 percent current unemployment rate for all workers. Walden said there are two main reasons why young adults have a higher unemployment rate than
workers across a broader age spectrum. “The higher rate for young adults has two causes: one, lack of work experience—with so many jobless workers, employers prefer to hire workers with more experience, and two, the fact that more young workers have not had a full-time job, so they haven’t been able to have their ‘foot in the door’ of employment,” Walden said. Economic forecasts suggest the jobless rate for young workers will gradually improve, but very slowly, according to Walden. This means young workers will take longer to become established and economically independent. Allison Harriett, a recent graduate in agricultural and environment technology, is currently looking for a job to begin her career. She works as a nanny during the summer and at an after-school childcare program during the school year part-time. About two months before gradu-
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limit interaction with their previous institution of employment for six months, Michael Stafford Mullen Vice plans to get Future Chancellor and Dean of Academic & involved as Student Affairs soon as pos-
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&2//(*( ,6 ,7 :257+ <285 7,0(" PLACING A VALUE ON YOUR MONEY AND LIFE COLLABORATION BY ARTH PANDYA, LAURA WILKINSON, MARK HERRING PHOTO BY CHARLIE HARLESS | GRAPHIC BY BRADLEY GUIDRY As tuition hikes exceed the inflation rate, many college students and their families are forced to swallow an uncertain reality: Take out loans or don’t get a college degree. With technical skills required for the modern-day workforce, the college degree is now the most important prerequisite for employment. However, the 12.9 percent unemployment rate for adults ages 20-24 poses additional uncertainty for those with loans. The uncertain employment atmosphere has persisted since the beginning of the recession in the fall of 2008. Massive layoffs and increased competition for jobs reminded young adults the importance of a college education, but our nation has come to a frightening crossroads: Is a college degree, while taking out loans, worth it? North Carolina ranked 10th in the nation for federal student loans granted between 2008-09 with 466,883 loans granted, according to Federal Student Aid. This number is growing, and the UNC System is increasing tuition across the board. But what is the value of this more expensive education? As a landgrant university, N.C. State’s core mission is preparing students for the workforce. But if employment for the youth stays marginal, why should North Carolinians in need of financial aid even consider taking on thousands of dollars of debt? The current task for Congress is to continue making college affordable to those on loans, but this is only a bandage for our youth’s
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Young adult unemployment rate shows little improvement The rate has decreased slightly from last year’s rate, but young adult unemployment still soars.
Though he is excited about the next chapter in his life, Stafford he said he wouldn’t stay away from the University for too long. “I’ll miss the interactions that I have with N.C. State students the most, and interactions with my staff and other colleagues,” Stafford said. “I’m very much a people-oriented kind of person.” While state law requires any retiree to
ation, Harriett decided she wanted to stay in Raleigh for her job search and used resources such as ePack, usajobs.gov and emails from her department. She said the country’s economic situation has affected her current job situation. “Most employers are not willing to take the risk to hire a recent college graduate with no prior experience. They want someone who can come in ready to start,” Harriett said. “Also, since I’m looking more heavily into a gov-
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9N=J9?= DG9F F==<%:9K=<! SPILL ON AISLE DEBT: The competitive job market is forcing college-educated youth to find employment wherever they can. Even with technical degrees and mountains of debt, some college graduates are forced to take jobs they worked in high school. The current 12.9 percent unemployment rate for young adults tests the value of pursuing a college degree.
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After 41 years, Tom Stafford is retiring from his post as Vice Chancellor.