UNIVERSITY ANNOUNCES UP TO $1 MILLION INCREASE IN PERKINS LOAN FUNDING FOR 2003-04 SCHOOL YEAR

FAYETTEVILLE, Ark. - The University of Arkansas and the Department of Education are pleased to announce the authorization of up to $4 million in Perkins Loans to be issued for the upcoming fall and spring semesters of 2003-04. The new funding marks an increase of 25 percent from Perkins Loan money awarded during the 2002-03 school year.

"The authorization of the increased funding for Perkins Loans presents wonderful benefits for students and their families," Director of Financial Aid Ed Schroeder said. "With recent state budget cuts and a 6.6 percent tuition increase, we are still able to assist our students with regard to financial aid and, in turn, help to further their education at the University of Arkansas."

A poll of 2002 UA graduates showed 58.3 percent of the exiting graduates borrowed money through various loan programs at some point in their academic careers. The average debt incurred by those graduates was $14,028.95. Comparatively, a 1999-2000 national study of outgoing seniors showed 62 percent of students were participants in some form of financial aid, and upon graduation, students averaged $16,900 in education-based debt.

While the U of A ranks below the national average for student indebtedness, Chancellor John A. White expressed concern over many students’ decisions to work full- or part- time jobs while attempting to complete their degrees.

"We’re aware 18 percent of our undergraduates maintain on-campus jobs and many others work off-campus while pursuing degrees," White said. "Consequently, many of those students fail to complete their desired degrees because of the constraints involved with balancing work and school. With even more money now available for low-interest loans, students and their families should explore this option and focus on completing their degrees. It is well worth the investment."

Provost and Vice Chancellor for Academic Affairs Bob Smith served as Executive Secretary on the 2010 Commission. He says students and their families should keep the long-term benefits of educational investments in perspective when considering applications for financial assistance.

"The 2010 Commission, in its report, Making the Case, noted the difference in borrowing the money necessary to buy a car or truck versus completing a 4-year college degree," Smith said. "Cars and trucks decrease in value, but college degrees increase in value. Deciding to borrow money to purchase a vehicle is an expenditure decision; deciding to borrow money to complete a college degree is an investment decision. Perkins Loans allow students to invest in college degrees."

The University was approved for the increased funding after its collections for the 2002-03 school year exceeded the $3 million required by the Department of Education.

Students interested in applying for financial aid may pick up the Free Application for Federal Student Aid at their high schools or at the University’s financial aid office in Hunt Hall, Room 114. An online application is also available at www.fafsa.ed.gov.

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