Journal Staff
For many students, financial aid is the deciding factor in whether or not to attend college in Guam.
At the University of Guam, 89% of students receive some kind of financial aid and at Guam Community College, recent statistics put that number for Fall enrolled students at 46%.
At UOG, fewer students are receiving finance for their secondary education. Since 2017, total federal student loan disbursements have dropped by 56% or by $3.5 million, while other financial aid sources like federal grants and scholarships have remained relatively stable over the eight years.
But debt is a burden for students.
Nationally, student loan debt has been on the rise over the same amount of time. According to the Education Data Initiative, the national student loan debt in the United States totals to $1.77 trillion; federal student loan debt represents 92.2% of all student loan debt.
The falling rate of student loans at UOG also mirrors the decline in student enrollment in both schools.
UOG has seen a harsh decline in enrollment since 2017 with enrollment falling by 30%. GCC sees a similar decrease with a 28% decline over the same period each Fall.
The Journal spoke to one UOG student on condition of anonymity about how he is financing his education.
He told the Journal that he and his peers are receiving some form of financial aid.
The third-year business administration major takes out about $4,500 each academic year which covers only half of expenses. The rest is paid for by his parents and he is not eligible for the Pell grant.
“The income of my parents is a little high, so I don’t qualify for any federal aid,” he said. The student also works part-time, which covers daily expenses like food and gas.
Students have a six-month grace period after they graduate college before they start paying off their loan. The student told the Journal that having the loan has put a pause on major life decisions.
“It kind of sucks, because with the student loan it hinders my ability to move out and getting a new car,” he said. “One of the disadvantages about having that loan is having less financial freedom for myself.”
The student is also seeing a change in attitude towards secondary education, and career paths caused by economic factors.
“I know a lot of people are going to the Guam Community College or the military, because [they are] less costly than going to UOG,” he said. “Definitely a lot of people are going into the workforce because they can’t afford college.”
Tuition at UOG has grown slightly since 2017. UOG raised undergraduate tuition during Academic Year 2020 to 2021 and graduate tuition the following year; GCC rates have remained the same.
According to the Bureau of Labor Statistic’s Short Term Occupational Employment Projects for 2023-2025, trades workers, like roofers and solar photovoltaic installers, and hospitality workers are expected make the largest increase percent change in employment versus occupations that typically require a four-year degree (teachers, lawyers, etc.)
A part of the reason why students are enrolling less into college is the lack of knowledge of available financial aid, the student said.
He told the Journal that when he was in high school, he was not aware of federal student aid and said that Public Law 37-93, which mandates that graduating high school seniors are required to complete the Free Application for Federal Student Aid as a prerequisite for graduation, could help seniors know about their financial aid options.
The Guam Department of Education told the Journal that PL 37-93 will take effect for seniors graduating in School Year 2025-2026.
Going forward, the student feels confident that after he graduates, he could find a job after college and that job would pay him enough to begin paying back his loan.
“I definitely would say it's possible,” he said. “If it came to the case where I wasn't able to pay off my student loans because of the salary here on Guam I think that would kind of force me to pursue opportunities off island.”
According to UOG, of all the graduates in the Spring 2023 cohort, more than half of them found full-time employment within the first year after graduating. In the same cohort, the average income was about $45,000.
If the student were to do it all over again, he told the Journal he would have taken advantage of UOG’s dual enrollment program as a senior in high school to save some money.
At the end of the day, he said he feels the average student’s financial situation is in the middle.
“It’s not good, but it’s still not really that bad.” mbj