College graduates face student loan debt

ALBANY -- More than 3000 graduates are now University at Albany alumni. The University is one of many colleges having graduation Sunday. But with the turn of the tassel, many of these students face a harsh reality. Paying back student loans.
"This is a central cause for why what we're seeing today in the United States. This huge gap between the rich and the poor and really a rigidifying of the class structure in the United States which is a real danger to our democracy and our economic future," says Fred Kowal, President of the United University Professions.
"Student debt is having a ripple effect on our overall economy. Part of it is that they can't get these jobs because these jobs aren't here so they can't pay off their student debt. Part of it's also they can't buy houses, they can't buy cars. So this isn't just impacting recent graduates it's impacting everyone," adds Chris Hicks, Organizer for the Debt Free Future Campaign.
The cost of tuition has been steadily increasing since 1978 by over 1000 percent. It's especially a problem from students here at New York State schools because they've been paying 65 percent of their bill.
"As close as 15 years ago the ratio was reversed. Only 35 percent of what students had to pay for education came from their pockets. The rest of SUNY's costs came from state funding," says Kowal.
"What students are paying today is outrageously more than what their parents and grandparents were paying," Hicks adds.
So, at a conference over the weekend, a panel of students talked solutions. Right now, they are working to form an endowment for public education in New York State. Meanwhile, legislators are working to alleviate the burden on graduates.
"Senator Warren from Massachusetts has introduced legislation and I know there is growing support for it. That, in essence would enable students to refinance their loans to lower interest rates which are now out there and this would be a very fair system," says Kowal.
"One piece of advise I want to make sure everyone knows is there are a few options out there, like income based repayment, pay assurant for your federal student loans and that is something everyone should look into because it's a way to reduce your monthly payment but it's not an end all option, it's not a silver bullet," says Hicks.
Another 999 graduate students received their degree Sunday at U-Albany.