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Insight News Oct 1, 1997 DEBT: Students losing ground Continued from page 1 Heuston said three reasons stand out for the sharp increase: students more easily accept loans becasue of the social mindset that says "I'll borrow"; new government rules allow more people to borrow through norV-need based loans; and the cost of education has grown. Five years ago, it cost about $8,200 annually to attend Fresno State, including school fees and living expenses. Heuston said the current cost is about $10,000 per year. Because of these factors, the average student who borrows from Wells Fargo carries an education loan debt of $3,388. said bank spokeswoman Loma Boubet. Though that number may seem high, it is considerably less than the $12,400 national average among students carrying college loans. In all, around $30 billion in student loans were issued last year. Add up student loans, car loans and credit card balances, and many students are left struggling to stay afloat financially right after graduation. Vogt expects to be one of them. Starting down the spiral Vogt said her first credit card was from JCPenney in 1991. She said she felt liberated by the freedom it gave her to walk into the store and buy anything she wanted. Visa, MasterCard, Discover. Mervyn's, Sears. Gottschalks, Macy's, Express and The Limited cards followed, as did several gasoline company cards. Vogt said her parents warned her about falling into debt when she began to get more and more lines of credit. "They told me to be careful all the time." she said. "All the time." Still, the buying continued and so did the bills. Furniture, clothes, school books, anything she wanted was a card swipe away. Vogt said by 1994 it became harder and harder to make the payments. Eventually she skipped some and creditors soon began calling. She said representatives from Express and The Limited called nearly every day. "One morning they called and I said, 'I can't talk right now, I've got to go to school.' She told me, 'Your education is not going to mean anything by the time we get done with you.' I was so upset." Vogt said. "I would get five different phone calls from five different creditors" on some days, she said. "I was making $600 to $700 a month and $250 of that was going to rent. Sometimes there was nothing to do but sit down Insight photo by Kelty Jones Hundreds of students, such as Michelle Molina and Sylivia Hernandez, middle, fill out credit card applications on campus each day. Bindy Kiggins, right, handles applications for Discover. and cry. I did that a lot." Heuston said situations like Vogt's are more common than they should be. "Look at the credit card debt in this country; it's mind blowing." he said. "Most people are a paycheck away from bankruptcy. It's easy to become a debt slave; we're an instant gratification people. We want it now." Vogt said she owed about $5,000 to credit card companies in 1995. when she first thought about filing for bankruptcy. When she finally filed about a year later, penalties and interest rates of up to 22 percent had increased the debt to about $11,000. The bankruptcy meant Vogt had to pay back a small fraction of her credit card debt. She also currently owes about $20,000 in federal student loans, which aren't subject to bankruptcy laws. As soon as her bankruptcy was finalized, she started getting new credit card offers. "They'd send me offers that said. 'Send us 40 bucks and we'll send you a credit card.'" Vogt said. Still, she doesn't blame the companies for their tactics and doesn't feel like a victim. "When you're in that position, there is no one you can be mad at but yourself, though I do think those companies should take some responsibility for what they do to people," she said. "The worst part was that I was so angry at myself for doing that. I wanted to make it on my own but it was so hard with that debt." She said her pride would not have allowed her to include her student loan in the bankruptcy even if it were an option. She said student loans are not as bad as credit cards because they are for a specific and necessary purpose. Heuston agreed. "I was almost buying the myth that students /"were so easily embracing what I would call debt slavery," he said. "But when you stop and look at it a second, getting an education will increase their earning over the course of their lives. It's an investment." Still. Heuston said students are often not as frugal as they should be. even with student aid. He said students often accept the maximum award they are eligible for rather than figuring out how much they really need to pay school and living costs. Vogt said her bankruptcy has had repercussions in other aspects of her life. She said a bank decided against interviewing her for a job because of her credit record. Few creditors will consider her a car loan now, she said. Rudy Reyes is just beginning down the path Vogt took. He was one of the many students who filled out an application with Leo Vail last month. Reyes said he had not planned to apply, but decided to on a whim as he passed Vail's tent. He said the free T-shirts Vail passed out also drew him to apply. "I'll probably use [the credit card] for books and stuff," said Reyes, a mechanical engineering major. "Maybe clothes. Just things for school." Now beginning his third semester at Fresno State. Reyes said he borrowed $1,300 during his first year to offset the cost of tuition, books and living expenses. He also received federal. Stafford loans, and he works at Toys R Us to meet his expenses. Still, he does not worry about his debt. "In the long run. it'll pay off when I get my job," Reyes said as he looked at the T-shirt Vail gave him. The shirt front read "Think ahead." Vail defended the inscription. "Banks are becoming more conscientious of what they're doing." he said, though he could not provide examples. "They've been taking a lot of flak in the media recently." Credit is big business Bindy Kiggins said she has worked at providing students with lines of credit for more than a decade. She said she once made up to $1,000 a week securing applications for a Sears store. Two weeks ago, she started work on the Fresno State campus, collecting student applications for Discover cards. She said she gets $2 to $3 for each Discover application she returns to the Pennsylvania company. She averages about 100 completed applications per day on campus. "People are really scared of credit because they're scared of themselves," Kiggins said. "They know they have no discipline." She said she is only allowed to offer the applications to college students, which sometimes makes her job more difficult. "These kids are smart" she said. "They're really discouraged against it, but I always talk them into it." f Kiggins said 50 to 75 percent of the students who apply for a Discover card through her get approved for credit. The entire application process takes about five minutes and students leave with a tote bag, flashlight, radio or other incentives. Though some find the trinkets connected to credit applications childish, Heuston said responsibility is a must for debtors with credit cards and student loans. "Everybody spends money so they think they know how to spend it. There are things worth purchasing on credit and education is one of those things," said Heuston, financial aid director since 1975. "It is something that is going to provide returns." "If you refrain from credit cards and installment purchases and the only debt you have on graduation from college is debt incurred from student loans, I don't think most people would have a problem with that," he said. "The problems start when you walk out of the door with $8,000 to $10,000 in student loan debt and you did buy a new car last year and you have a couple of credit cards, then you're talking about a situation where you're going to struggle," Heuston said. "Theoretically, you should be able to get through school without getting too deep in the hole- Live Music Wednesday thru Saturday DJ Mondays ft Tuesdays 16 ox DRAFT Monday & Thursday $1.00 FREE Country Dance Lessons Sunday ft Wednesday 430 Clovis Ave. 299-2597 SHIELDS: Professor worried about athlete misconduct USD PAVILION It's happening here! Check it out! • Council Travel . Tower Record* • Dean of Comics . The Golden 1 Credit Union • TCBY Treat* • Hungry Bear Cookies • The Coffee Spot • Recreation Center Located In the lower lever of the University Student Union Continued from page 1 the Jan. 10. 1990 issue of The Chronicle of Higher Education. The article described an American Association of University Professors report that argued for more faculty involvement in policies governing sports programs. Shields supplements his Academic Senate experience and stays current by keeping a stack of clipped-out articles mentioning incidents involving players this year. Shields believes his resolution is exactly what the athletic department needs to restore its integrity. But the department may have beat him to the punch. During the AcademicSenaie meeting, athletic director Al Bohl mentioned two proposals of his own that had been developed by the recently-formed athletic advisory council and approved by Welty last week. The council's "Code for Student Athlete Recruitment" provides guidelines for recruiting athletes, including a provision that would prevent an athlete convicted of a felony to be recruited. However, the athletics director could make exceptions to the code at a coach's request. The council also approved a "Student-Athlete Code of Conduct." This code outlines a system of penalties for athletes' conduct. For example, athletes charged with a felony would be automatically suspended and investigated by the athletics director. Bohl also reminded the Senate that the advisory council was already in place to advise President John Welty and the athletics department on policy matters. "The process you want is well on its way," Bohl told the Senate. Shields held firm that his motion must be passed to hold the athletic department accountable. "I want to believe and trust them, but the track record is you have got to be vigilant," Shields said. The Shields resolution appears to have gained support in the administration, athletic department and faculty. Welty offered his support to the measure. "I think [Shields] is sincere in his beliefs and his desire to have an athletic program that we can all be proud of," Welty said. The resolution's main sticking point is a provision saying the Senate should give a vote of "no confidence" to the athletics department, the coaches and the administration if athletes do not live up to the new code of conduct. Welty said the conditional no confidence vote provision was unnecessary. "The Senate has the ability to take that action |a vote of no confidence] at any time, and it's not necessary to be in |the resolution]," he said. Shields recently added a new provision to his resolution. The addition proposes that the Senate would give a vote of commendation to the athletics department if the higher standards arc upheld. BULLDOGS FAVORITE PLACE TO EAT Look What's NEW at Becky's!! •NEW Location: Now located on Sixth & Shaw •NEW Full Service Deli •NEW Hours: Now Serving Dinner'til 9 PM "Good old fashion cookin' with that good old fashion service" m FEES: Costs higher for students from out of state Continued from page 1 devastate international students. As a result, they cannot count on money from home and find themselves in financial problems. A Bosnian student visited Nunez' office for help because his father lost everything he had — his apartment, job, car and friends — in the war afflicting his country. A South Korean student sought help because the economic recession that struck her country in 1990 had damaged her father's business. Her parents were only able to send her half the money she needed for school. Yamaguchi didn't ask his mother, a single parent, for financial help. His brother borrowed about $45,000 from a Japanese bank for his college expenses. His sister in Japan also borrowed $4,600 from her student loan and gave it to him. That is how he manages his fees. "After graduating Fresno State. I have to earn money — as much as I can — to pay back all the debt under my brother's and sister's names." Yamaguchi said. Additional problems Nunez said there is another type of international student that faces financial problems: those who choose to come here but can't receive their money on time to pay for registration. —v Not all international students find it difficult to pay tuition and registration fees. International students must demonstrate that they have sufficient money for one academic year's expenses before they are accepted by a university. Nunez said U.S.-born students at Fresno State also face financial problems. Distance from home makes the situation worse, though, because it costs students more money if they study in a foreign country, he said. Nunez has worked at the-wtemational Student Services and Programs (ISSP) for a year. He helps international students find off- and on-campus jobs. Students without enough money have to take jobs or find money on their own. To get a job, they must get a work permit from the Immigration and Naturalization Services office, a process many find hard and time-consuming. Unforgiving rules INS rules are strict for international students. F-l visas arc not initially approved without proof the potential students can afford their education and living expenses without working while in the U.S. The agency also imposes other restrictions on international students to keep their F-l visa status. Undergraduate international students are required to take at least 12 units and graduate students must take nine units each semester. Sabina Jacques, an immigration adviser at the ISSP. said about IIX) international students apply for work permits to get on-campus jobs each semester. "Normally we don't issue work permits for students in the first semester because we want them to do well in school." Jacques said. She said about 10 students apply for off-campus work permits each semester and the office makes decisions based on economic hardship Jacques thinks international students can find their tuition and fees, which total about four times as much as ter California residents, a source of distress. Concerned about international students in financial difficulties, Jacques said she feels bad when international students face money problems caused b\ unpredictable situations. "I try to do what I can to help the students in filling out the paperwork so they arc approved for work permits." Jacques said. Some international students in serious financial trouble can seek tuition waivers. The hardship tuition waiver gives international students an opportunity to work on campus 30 hours per week in excharge for the tuition waiver. This system is the last resort for students in serious need to continue school. Yamaguchi works in the^campus Learning Resource Center as a computer programmer to cover his living expenses this semester. He said he is already trying to find a way to pay his spring semester's tuition and registration fees. "Money means everything in the real world." he said. "I know because I don't have money. Rich people cannot understand how I feel about money like I cannot understand how starved people feel about food."
Object Description
Title | 1997_10 Insight October 1997 |
Alternative Title | Insight (California State University, Fresno) |
Publisher | Dept. of Journalism, California State University, Fresno. |
Publication Date | 1997 |
Description | Weekly during the school year. Vol. 1, no. 1 (Oct. 8, 1969)-v. 29, no. 23 (May 13, 1998). Ceased with May 13, 1998, issue. Title from masthead. Merged with Daily collegian. |
Subject | California State University, Fresno Periodicals |
Contributors | California State University, Fresno Dept. of Journalism |
Coverage | October 8, 1969 – May 13, 1998 |
Format | Microfilm reels, 35mm |
Technical Information | Scanned at 600 dpi; TIFF; Microfilm ScanPro 2000 “E-image data” |
Language | eng |
Description
Title | Insight Oct 1 1997 p 3 |
Alternative Title | Insight (California State University, Fresno) |
Publication Date | 1997 |
Full-Text-Search | Insight News Oct 1, 1997 DEBT: Students losing ground Continued from page 1 Heuston said three reasons stand out for the sharp increase: students more easily accept loans becasue of the social mindset that says "I'll borrow"; new government rules allow more people to borrow through norV-need based loans; and the cost of education has grown. Five years ago, it cost about $8,200 annually to attend Fresno State, including school fees and living expenses. Heuston said the current cost is about $10,000 per year. Because of these factors, the average student who borrows from Wells Fargo carries an education loan debt of $3,388. said bank spokeswoman Loma Boubet. Though that number may seem high, it is considerably less than the $12,400 national average among students carrying college loans. In all, around $30 billion in student loans were issued last year. Add up student loans, car loans and credit card balances, and many students are left struggling to stay afloat financially right after graduation. Vogt expects to be one of them. Starting down the spiral Vogt said her first credit card was from JCPenney in 1991. She said she felt liberated by the freedom it gave her to walk into the store and buy anything she wanted. Visa, MasterCard, Discover. Mervyn's, Sears. Gottschalks, Macy's, Express and The Limited cards followed, as did several gasoline company cards. Vogt said her parents warned her about falling into debt when she began to get more and more lines of credit. "They told me to be careful all the time." she said. "All the time." Still, the buying continued and so did the bills. Furniture, clothes, school books, anything she wanted was a card swipe away. Vogt said by 1994 it became harder and harder to make the payments. Eventually she skipped some and creditors soon began calling. She said representatives from Express and The Limited called nearly every day. "One morning they called and I said, 'I can't talk right now, I've got to go to school.' She told me, 'Your education is not going to mean anything by the time we get done with you.' I was so upset." Vogt said. "I would get five different phone calls from five different creditors" on some days, she said. "I was making $600 to $700 a month and $250 of that was going to rent. Sometimes there was nothing to do but sit down Insight photo by Kelty Jones Hundreds of students, such as Michelle Molina and Sylivia Hernandez, middle, fill out credit card applications on campus each day. Bindy Kiggins, right, handles applications for Discover. and cry. I did that a lot." Heuston said situations like Vogt's are more common than they should be. "Look at the credit card debt in this country; it's mind blowing." he said. "Most people are a paycheck away from bankruptcy. It's easy to become a debt slave; we're an instant gratification people. We want it now." Vogt said she owed about $5,000 to credit card companies in 1995. when she first thought about filing for bankruptcy. When she finally filed about a year later, penalties and interest rates of up to 22 percent had increased the debt to about $11,000. The bankruptcy meant Vogt had to pay back a small fraction of her credit card debt. She also currently owes about $20,000 in federal student loans, which aren't subject to bankruptcy laws. As soon as her bankruptcy was finalized, she started getting new credit card offers. "They'd send me offers that said. 'Send us 40 bucks and we'll send you a credit card.'" Vogt said. Still, she doesn't blame the companies for their tactics and doesn't feel like a victim. "When you're in that position, there is no one you can be mad at but yourself, though I do think those companies should take some responsibility for what they do to people," she said. "The worst part was that I was so angry at myself for doing that. I wanted to make it on my own but it was so hard with that debt." She said her pride would not have allowed her to include her student loan in the bankruptcy even if it were an option. She said student loans are not as bad as credit cards because they are for a specific and necessary purpose. Heuston agreed. "I was almost buying the myth that students /"were so easily embracing what I would call debt slavery," he said. "But when you stop and look at it a second, getting an education will increase their earning over the course of their lives. It's an investment." Still. Heuston said students are often not as frugal as they should be. even with student aid. He said students often accept the maximum award they are eligible for rather than figuring out how much they really need to pay school and living costs. Vogt said her bankruptcy has had repercussions in other aspects of her life. She said a bank decided against interviewing her for a job because of her credit record. Few creditors will consider her a car loan now, she said. Rudy Reyes is just beginning down the path Vogt took. He was one of the many students who filled out an application with Leo Vail last month. Reyes said he had not planned to apply, but decided to on a whim as he passed Vail's tent. He said the free T-shirts Vail passed out also drew him to apply. "I'll probably use [the credit card] for books and stuff," said Reyes, a mechanical engineering major. "Maybe clothes. Just things for school." Now beginning his third semester at Fresno State. Reyes said he borrowed $1,300 during his first year to offset the cost of tuition, books and living expenses. He also received federal. Stafford loans, and he works at Toys R Us to meet his expenses. Still, he does not worry about his debt. "In the long run. it'll pay off when I get my job," Reyes said as he looked at the T-shirt Vail gave him. The shirt front read "Think ahead." Vail defended the inscription. "Banks are becoming more conscientious of what they're doing." he said, though he could not provide examples. "They've been taking a lot of flak in the media recently." Credit is big business Bindy Kiggins said she has worked at providing students with lines of credit for more than a decade. She said she once made up to $1,000 a week securing applications for a Sears store. Two weeks ago, she started work on the Fresno State campus, collecting student applications for Discover cards. She said she gets $2 to $3 for each Discover application she returns to the Pennsylvania company. She averages about 100 completed applications per day on campus. "People are really scared of credit because they're scared of themselves," Kiggins said. "They know they have no discipline." She said she is only allowed to offer the applications to college students, which sometimes makes her job more difficult. "These kids are smart" she said. "They're really discouraged against it, but I always talk them into it." f Kiggins said 50 to 75 percent of the students who apply for a Discover card through her get approved for credit. The entire application process takes about five minutes and students leave with a tote bag, flashlight, radio or other incentives. Though some find the trinkets connected to credit applications childish, Heuston said responsibility is a must for debtors with credit cards and student loans. "Everybody spends money so they think they know how to spend it. There are things worth purchasing on credit and education is one of those things," said Heuston, financial aid director since 1975. "It is something that is going to provide returns." "If you refrain from credit cards and installment purchases and the only debt you have on graduation from college is debt incurred from student loans, I don't think most people would have a problem with that," he said. "The problems start when you walk out of the door with $8,000 to $10,000 in student loan debt and you did buy a new car last year and you have a couple of credit cards, then you're talking about a situation where you're going to struggle," Heuston said. "Theoretically, you should be able to get through school without getting too deep in the hole- Live Music Wednesday thru Saturday DJ Mondays ft Tuesdays 16 ox DRAFT Monday & Thursday $1.00 FREE Country Dance Lessons Sunday ft Wednesday 430 Clovis Ave. 299-2597 SHIELDS: Professor worried about athlete misconduct USD PAVILION It's happening here! Check it out! • Council Travel . Tower Record* • Dean of Comics . The Golden 1 Credit Union • TCBY Treat* • Hungry Bear Cookies • The Coffee Spot • Recreation Center Located In the lower lever of the University Student Union Continued from page 1 the Jan. 10. 1990 issue of The Chronicle of Higher Education. The article described an American Association of University Professors report that argued for more faculty involvement in policies governing sports programs. Shields supplements his Academic Senate experience and stays current by keeping a stack of clipped-out articles mentioning incidents involving players this year. Shields believes his resolution is exactly what the athletic department needs to restore its integrity. But the department may have beat him to the punch. During the AcademicSenaie meeting, athletic director Al Bohl mentioned two proposals of his own that had been developed by the recently-formed athletic advisory council and approved by Welty last week. The council's "Code for Student Athlete Recruitment" provides guidelines for recruiting athletes, including a provision that would prevent an athlete convicted of a felony to be recruited. However, the athletics director could make exceptions to the code at a coach's request. The council also approved a "Student-Athlete Code of Conduct." This code outlines a system of penalties for athletes' conduct. For example, athletes charged with a felony would be automatically suspended and investigated by the athletics director. Bohl also reminded the Senate that the advisory council was already in place to advise President John Welty and the athletics department on policy matters. "The process you want is well on its way," Bohl told the Senate. Shields held firm that his motion must be passed to hold the athletic department accountable. "I want to believe and trust them, but the track record is you have got to be vigilant," Shields said. The Shields resolution appears to have gained support in the administration, athletic department and faculty. Welty offered his support to the measure. "I think [Shields] is sincere in his beliefs and his desire to have an athletic program that we can all be proud of," Welty said. The resolution's main sticking point is a provision saying the Senate should give a vote of "no confidence" to the athletics department, the coaches and the administration if athletes do not live up to the new code of conduct. Welty said the conditional no confidence vote provision was unnecessary. "The Senate has the ability to take that action |a vote of no confidence] at any time, and it's not necessary to be in |the resolution]," he said. Shields recently added a new provision to his resolution. The addition proposes that the Senate would give a vote of commendation to the athletics department if the higher standards arc upheld. BULLDOGS FAVORITE PLACE TO EAT Look What's NEW at Becky's!! •NEW Location: Now located on Sixth & Shaw •NEW Full Service Deli •NEW Hours: Now Serving Dinner'til 9 PM "Good old fashion cookin' with that good old fashion service" m FEES: Costs higher for students from out of state Continued from page 1 devastate international students. As a result, they cannot count on money from home and find themselves in financial problems. A Bosnian student visited Nunez' office for help because his father lost everything he had — his apartment, job, car and friends — in the war afflicting his country. A South Korean student sought help because the economic recession that struck her country in 1990 had damaged her father's business. Her parents were only able to send her half the money she needed for school. Yamaguchi didn't ask his mother, a single parent, for financial help. His brother borrowed about $45,000 from a Japanese bank for his college expenses. His sister in Japan also borrowed $4,600 from her student loan and gave it to him. That is how he manages his fees. "After graduating Fresno State. I have to earn money — as much as I can — to pay back all the debt under my brother's and sister's names." Yamaguchi said. Additional problems Nunez said there is another type of international student that faces financial problems: those who choose to come here but can't receive their money on time to pay for registration. —v Not all international students find it difficult to pay tuition and registration fees. International students must demonstrate that they have sufficient money for one academic year's expenses before they are accepted by a university. Nunez said U.S.-born students at Fresno State also face financial problems. Distance from home makes the situation worse, though, because it costs students more money if they study in a foreign country, he said. Nunez has worked at the-wtemational Student Services and Programs (ISSP) for a year. He helps international students find off- and on-campus jobs. Students without enough money have to take jobs or find money on their own. To get a job, they must get a work permit from the Immigration and Naturalization Services office, a process many find hard and time-consuming. Unforgiving rules INS rules are strict for international students. F-l visas arc not initially approved without proof the potential students can afford their education and living expenses without working while in the U.S. The agency also imposes other restrictions on international students to keep their F-l visa status. Undergraduate international students are required to take at least 12 units and graduate students must take nine units each semester. Sabina Jacques, an immigration adviser at the ISSP. said about IIX) international students apply for work permits to get on-campus jobs each semester. "Normally we don't issue work permits for students in the first semester because we want them to do well in school." Jacques said. She said about 10 students apply for off-campus work permits each semester and the office makes decisions based on economic hardship Jacques thinks international students can find their tuition and fees, which total about four times as much as ter California residents, a source of distress. Concerned about international students in financial difficulties, Jacques said she feels bad when international students face money problems caused b\ unpredictable situations. "I try to do what I can to help the students in filling out the paperwork so they arc approved for work permits." Jacques said. Some international students in serious financial trouble can seek tuition waivers. The hardship tuition waiver gives international students an opportunity to work on campus 30 hours per week in excharge for the tuition waiver. This system is the last resort for students in serious need to continue school. Yamaguchi works in the^campus Learning Resource Center as a computer programmer to cover his living expenses this semester. He said he is already trying to find a way to pay his spring semester's tuition and registration fees. "Money means everything in the real world." he said. "I know because I don't have money. Rich people cannot understand how I feel about money like I cannot understand how starved people feel about food." |