The independent student newspaper at the University of Illinois since 1871

The Daily Illini

The independent student newspaper at the University of Illinois since 1871

The Daily Illini

The independent student newspaper at the University of Illinois since 1871

The Daily Illini

The independent student newspaper at the University of Illinois since 1871

The Daily Illini

Students should consider economy, debt when accepting loans

With the economy pushing more students into debt, officials say students can reduce their debt and the burden on the financial aid system by accepting less assistance than they are offered. While the costs of campus housing options vary, the amount of financial aid students receive is not based on the type of housing they are living in, said Dan Mann, director of Financial Aid Services.

With the economy pushing more students into debt, officials say students can reduce their debt and the burden on the financial aid system by accepting less assistance than they are offered. While the costs of campus housing options vary, the amount of financial aid students receive is not based on the type of housing they are living in, said Dan Mann, director of Financial Aid Services.

“Students are encouraged to only borrow the amount that they need,” Mann said, “There are many students that choose not to borrow at all.”

Though Mann said many students are able to cover University costs, the economic downturn has pushed people to look for help.

“Right now, we have a 16.6 percent increase in applications for student aid,” Mann said, “We also had more student admissions this year than in past years, but this is clearly an increase in demand for financial aid.”

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He added that filling out an application does not necessarily mean that the student will accept the aid. Special considerations are taken for families who have been directly affected by the recession, Mann said.

“If a student were, say, supported by a realtor, that would be considered a special circumstance,” Mann said. “That is because their income is based on a commission in a market that isn’t doing too well,”

Mann said Financial Aid Services makes its estimates based on tuition costs, transportation, housing and personal allowances. The service equates living in private housing with the cost of living in the dorms while on a twenty meals per week plan.

“I’m renting a room that is slightly more expensive than the dorms,” said Parthiban Muniandy, graduate student. “I plan on accepting all of the financial aid that is offered.”

Muniandy said he is receiving financial aid for the first time as a graduate student because of increased tuition costs.

“It is always better to pay your own way if you can so that you don’t have to pay for it later,” said Esther Patt, director of the Tenant Union.

Eric Gamboa, senior in LAS, said he accepted more financial aid during his two years in University housing than during his two years in private housing.

“Living outside the dorms is a lot less expensive,” Gamboa said, “It’s still cheaper even with utilities and food being separate.”

Patt said she believes students receive a greater amount of financial aid because tuition and minimum wage have increased by a 4:1 ratio since she attended the University 30 years ago.

“The average cost of living in private housing is equal to living in University housing,” Mann said, “There are of course many private options that are below or above that average.”

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