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STUDENT $$$$$$$$ AN $$$$$$$$$$$$$ LOAN $$$$$$$$$$$ ACCESSIBILTY $$$$$ DEBT $$$$$$$$$$$ ISSUE $$$$$$$$$$$ SAM MRDEZA

SENIOR SEMINAR


THE PROBLEM The student debt crisis is not only affecting past, present, and current students - but is also deterring others from attending college and contributing toward 10% of the nation’s debt. This has been happening since the early 2000’s. Increased tuition costs, privatized loan institutions, high interest rates, and reduced state spending are just a few of the root causes.


“ABOUT 1/3 OF ADULTS UNDER 30 HAVE STUDENT LOAN DEBT.” PEW RESEARCH CENTER

AVERAGE STUDENT LOAN DEBT = $38,327 DEBT.COM

“MY FAMILY HAD TO DECLARE BANKRUPTCY.” ERIC RUSTICUS (Primary Research Interview)

“I CAN’T AFFORD A HOUSE FOR ANOTHER 10 YEARS” EMILY JOHNSON (Primary Research Interview)


AFFECTED COMMUNITY/STAKEHOLDERS The affected community ranges from past, present, and future students along with their families. I am focusing on the future students to try and inform them before they make a wrong (or dumb) decision.

CHAD, 18 STILL IN HIGH SCHOOL, WANTS TO ATTEND COLLEGE FOR “BUSINESS” KNOWS ABOUT STUDENT LOANS BUT DOESNT KNOW ABOUT INTEREST RATES OR COST OF LIVING EXSPENSES. THINKS HE WILL EASILY PAY OFF LOANS WITH A BIG BOY JOB.

INFORMATION TAKEN FROM PRIMARY RESEARCH INTERVIEWS

RICKY, 27 RENTING A STUDIO APARTMENT FOR $900 A MONTH GRADUATED WITH A DEGREE IN GRAPHIC DESIGN, CURRENTLY WORKING ONLY FREELANCE. $60,000 IN DEBT CAN’T AFFORD HEALTH INSURANCE BECAUSE ALL OF HIS MONEY GOES TOWARDS HIS STUDENT LOAN DEBT.

INFORMATION TAKEN FROM PRIMARY RESEARCH INTERVIEWS


PROJECT

OBJECTIVE HOW CAN AWARENESS BE RAISED

REGARDING THE STUDENT DEBT CRISIS

AND HOW CAN STUDENTS AND FAMILIES BE MORE PREPARED AND EDUCATED ABOUT STUDENT LOAN DEBT?


PROJECT

GOALS EDUCATE AWARENESS FOR STUDENT DEBT DESIGN FUNCTIONAL EASY TO USE APP PROVIDE NECESSARY INFORMATION PROVIDE ALTERNATIVE OPTIONS


INVESTIGATION & INSIGHTS (GRADS)

10 SURVEYS

90% OF SURVEYED GRADUATES STILL HAVE STUDENT LOAN DEBT AND ARE HELD BACK FROM MAJOR LIFE EVENTS. This proves correct from the secondary research. Many grads are still struggling to make ends meet. This could be contributed to ignorance, bad decisions, or simply that college is expensive.

10 SURVEYS

70% OF SURVEYED GRADUATES SAID COLLEGE WAS NOT WORTH IT OR HAS NOT BENEFITED THEM.

This is interesting because college is generally associated with success. Most grads stated they make the same amount as without a degree. There is also degree and job type to take into consideration.


INVESTIGATION & INSIGHTS (CURRENT)

8 SURVEYS

100% OF SURVEYED CURRENT STUDENTS HAVE TAKEN OUT 1 OR MORE LOANS. 20% SAID THEY CAN’T REMEMBER WHAT TYPE OF LOAN IT WAS. I can conclude that if 100% of students are taking out loans, then tuition must be too high. Also the fact that a quarter of them were uneducated about what type of loan they took out.

CREDIT.COM

THE AVERAGE MONTHLY PAYMENT FOR STUDENT LOANS IS $389.00. THE AVERAGE REPAYMENT RATE IS OVER 10 - 30 YEARS. How are students supposed to afford a second rent payment fresh out of school with little to no experience? This proves that right out of the gate, students are at a disadvantage.


INVESTIGATION & INSIGHTS (FUTURE)

5 SURVEYS

80% BELIEVE THEY WILL SIMPLY JUST REPAY THEIR LOANS WHEN “THEY GET A GOOD JOB” OUT OF COLLEGE. High school students are not too worried about loan debt because thats just “part of the process.” This tells me that they are naive in the sense of the real world and potentially haven’t thought too far in the future about finances during and after college.

5 SURVEYS

40% WILL HAVE TO TAKE OUT A LOAN IMMEDIATELY, THE REST ARE ATTENDING COMMUNITY COLLEGE FOR GEN EDS. Kudos to the future students that are taking their gen-eds at a community college. Maybe they are undecided? Maybe they can’t afford college. This is a great example of an alternative.


INVESTIGATION & INSIGHTS (BIGGEST POINT)

23 SURVEYS

90% OF ALL STUDENTS SURVEYED OR INTERVIEWED DID NOT RECIEVE SUFFICIENT EDUCATION ABOUT STUDENT LOANS BEFORE COLLEGE.

This indicates that inadequate education about student loans prior to college could be a contributing factor for students to spend money recklessly or not know how or what loans to take out. This universal find will serve as the basis for a solution by design.


THE SO BIG WHAT’S IDEA?

Tackle one aspect of the student debt crisis by making high school grads aware of the different life options or alternatives they have to succeed after school.


#DegreeOrNotDegree


BIBLIOGRAPHY ALL ICONS MADE BY FLATICON

https://www.onlinecolleges.net/student-debt-in-the-u-s-part-2-a-brief-history-of-student-debt-in-the-united-states/ https://www.studentdebtrelief.us/news/rising-tuition-costs-and-the-history-of-student-loans/ https://www.marketwatch.com/story/how-we-got-to-1-trillion-in-debt-an-illustrated-history-of-student-loans-inamerica-2017-03-21 https://www.valuepenguin.com/average-student-loan-debt https://scholarshipamerica.org/blog/the-far-reaching-impact-of-the-student-debt-crisis/ https://www.debt.org/students/loan-forgiveness/ https://hbr.org/2019/09/what-will-it-take-to-solve-the-student-loan-crisis

Profile for Samuel Sterling Mrdeza

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