Attending College Online Can Offer Relief From Rising Tuition and Lingering Education Loans

Ashworth College grads start their careers free and clear of student loan debt

NORCROSS, Ga., July 26, 2011 /PRNewswire-USNewswire/ -- For the thousands of college students who graduate each year, donning cap and gown symbolizes the end of one journey and the start of another. For many it signals a new beginning full of hope and promise; and for others it's also the first of many monthly student loan payments.

With tuition, fees and related expenses driving up the cost of attending college, from among the more than 18 million students currently enrolled in the nearly 5,000 U.S. colleges and universities, it is expected that 2/3 will graduate with student loans and an average debt of $25,000 (source: tradingreport.com).

According to CollegeBoard.com, for the 2010-2011 academic year in-state a student pursuing a bachelor's degree at a four year school and living on campus needed to budget more than $20,000 a year. Students and their families who are unable to meet college expenses through other means such as scholarships, current family income and savings begin to depend on college loans as a way to pay for tuition and other college expenses. In fact, half of all full-time undergraduates in the United States take out federal student loans, adding up to about $57 billion.

However, there are alternative ways to earn a college degree without breaking the bank or committing future income.

A leader in online education, Ashworth College recently welcomed more than 200 graduates at its annual graduation ceremony held on July 16 in Atlanta, GA. For those in attendance graduation symbolized the end of a journey. And a major advantage these graduates have over those graduating from brick and mortar institutions is that they are 100% education debt free.

An accredited online school like Ashworth can even take this one step forward by including the cost of textbooks and eliminating the need for travel and room and board. Not only does this make the cost of education significantly lower (two semesters at Ashworth are only $2,490 – an 88% difference from the amount offered by the CollegeBoard), Ashworth's pay-as-you-go model gives students the benefit of knowing that the low, interest-free monthly payments made while studying means that when they graduate the only thing they will have to show for their efforts is a diploma, not a heavy debt looming overhead.

"I've had student loans in the past and it's not a great feeling to have $20,000-$30,000 in student loan debt lingering about," said Lilly Porter, Snellville, GA, who earned her Master's of Science Degree in Business Administration from Ashworth College. "The low, interest-free payments I made while studying were extremely manageable so I can now focus solely on getting a job. It's one less thing I have to worry about."

It's projected that for the average 2012 bachelor's degree grad that has accumulated $25,000 in student loans, depending on the loan, one could expect to be assessed an additional $10,000 in interest (assumes an non-subsidized loan at 6.8% interest). This translates to monthly payments of $288 for the next ten years.

"For Ashworth graduates, because they are graduating free and clear, their $40,000 a year salary goes right into his or her pocket," said Dr. Leslie Gargiulo, Ashworth College Vice President of Education. "And the extra $10,000 that others are paying out in interest charges can go a long way towards purchasing a new car or making a down payment on a house."

Dr. Gargiulo went on to point out that a student in Ashworth's bachelor's program pays only $54 a month (textbooks included) while going to school, compared to the $288 monthly student loan payments others will start paying post-graduation.

Let the borrower beware

Since 1978, the cost of college tuition in the United States has gone up by over 900%. And there are many that charge $40,000 or even $50,000 a year for tuition, not including textbooks, room and board and other living expenses.

For many, student loans have made the dream of higher education a reality with one major appeal being its flexibility -- no payments are required while in college and depending on the loan, a grace period of six to nine months after graduating before the first payment is due.

In fact, loans have become so prevalent that a New York Times article reported that student loan debt has outpaced credit card debt and could top a trillion dollars. However, when students take out a college loan, it's just like any other form of credit: although the interest payments are probably lower than a credit card, the money borrowed eventually must be repaid — with interest.

And, like other forms of credit there can be a down side. According to a study from the Institute of Higher Education Policy, 1 in 4 graduates are having trouble making monthly payments. And when borrowers are delinquent on payments it can affect their ability to get a good rate on any future loan, including auto loans and mortgages, and will affect their credit reports.

With schools like Ashworth, prospective students have the opportunity to decide how to get the most out of their tuition dollars. "It's important that today's college student weigh all the options," commented Dr. Gargiulo. "When a student chooses a college it's because there is something about the school that fits into what the student has in mind for the future -- and future earnings and disposable income is usually a big part of the picture."

About Ashworth College

As an online school leader, Ashworth College has built a tradition of excellence spanning 25 years, offering students worldwide more than 115 online college degrees, online certificate programs and online high school diploma options that are affordable and fit the busy schedules of working adults. Ashworth offers military education as well as specialized programs for corporate partners and homeschoolers.

Headquartered in Norcross, GA, Ashworth is accredited by the Distance Education and Training Council (DETC). The Accrediting Commission of the DETC is listed by the U.S. Department of Education as a nationally recognized accrediting agency. James Madison High School is further accredited regionally by the Southern Association of Colleges and Schools Council on Accreditation and School Improvement (SACS CASI). SACS CASI is an accreditation division of AdvancED. For more information, visit http://www.ashworthcollege.edu.

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Dr. Leslie Gargiulo, Ph.D.
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SOURCE Ashworth College