School vice president Dolan Evanovich says the scholarships and grants will help diversify and retain students as the cost of a college education keeps rising.

A recent study says the cost of a college education has outpaced inflation for decades and more students are paying those costs with borrowed money. In the U.S., total student loan debt now tops $1 trillion and the average student debt is $25,000

Ohio University sociologist Deborah Thorne describes herself as pessimistic about student loan debt.

“So many people now are burdened with student loan debt that they cannot escape, period. They cannot get out from under this,” Thorne said.

Federal government figures indicate more than 65 percent of college students who graduate with a Bachelor’s degree have some loan debt. Average student loan debt recently topped $25,000. But, Thorne says more college students are much deeper in hock. She adds most students are not being advised about the long-term consequences of taking out large loans.

“Think of the mood you would be in if you were the student who was graduating with $80,000 in student loan debt. I know that’s not the average. But, I frequently talk with students who are borrowing $20,000 per year,” Thorne said. They’re getting through school on loans and they’re graduating with $80,000 in student loan debt.”

To pay off a student loan of $80,000 in 10 years with a fixed rate of 6.8 percent, the graduate would have to pay $920 per month. A $25,000 loan can be repaid with the same interest rate with a payment of $288 per month for 10 years.

At Wiiliam and Mary College in Virginia, economist David Feldman also researches student loan debt and its economic and personal effects.

“We are in a world in which the distribution of income in the United State has changed dramatically over the past 30 years. We are less the middle class society that we once were,” Feldman said.

Feldman adds that as the middle class shrinks, and federal and state governments reduce their financial support of higher education, families with college age children are bearing an increased share of the cost. In 1975, Feldman says families paid about a third of the cost of college while now families pay about half of all tuition, room and board.

“So that’s a sea change, that’s a big change that families are now shouldering a much greater fraction of the bill,” Feldman said.

Still, Feldman argues that a college education is well worth the higher cost.

“Its like you’re investing in a lifetime of earnings differential that is, at a minimum, on average, $500,000 or more of extra earnings because you have a college degree,” Feldman said.

But, Thorne is less sure

“Staying in this holding pattern of giving more loans, more loans, more loans to students is dysfunctional. Its really short-sighted,” Thorne said.

The most recent figures show30 percent of outstanding student loans now have past due balances. But, borrowers will remain liable for the debts since student loans cannot be erased through bankruptcy.

At the Sav-A-Lot Store on east Main Street in Columbus, Rochelle Williams and her son are loading groceries into their S-U-V. Its one of several stops she makes in her effort to get the lowest prices on food.

“If you’re not going to a discount store, its ridiculous. I just spent $31 on barely anything.”

Williams and shoppers like her are engaged in a grocery store version of The Price is Right. Sav-A-Lot store manager R.G. Kouns says higher prices for raw materials and transportation are now filtering onto grocery shelves.

“Its not one store or one chain of stores trying to raise their prices its just that the cost of goods is going up so much that they’re going to have to increase things incrementally to cover your own costs.” Says Kouns. But many shoppers take note of even incremental price hikes. Williams says she’s noticed the tick up in prices in nearly every grocery aisle.

“Mainly on the produce and the more natural foods, the prices are really high, your orange juice, your milk, stuff like that its starting to get ridiculous. Toilet paper has even gone up. Q) How do you compensate for that with the higher price? What do you do to keep going? A)Shop three different stores, (laughter) only buy what’s on sale when its on sale. That’s the only way we’ve been making it every month.”

Williams says she’s stopped buying fresh fruit and produce every week to compensate for the higher prices. She now buys the items every two weeks despite complaints from other family members.

“They don’t like it. They love their fresh fruit in the morning. And so, right now, I mean when you’re paying five dollars for oranges. It’s retarded.”

As Rochelle Willaims pinches pennies at the check-out counter, Kouns works to find ways to keep his thin profit margin from disappearing. He starts in the produce aisle.

“For example, the cost of tomatoes, it used to be the cost of a four-pack of tomatoes was around $2.49, $2.29, now they’re almost three bucks. And to break that down, we try and sell them individually so you don’t have to spend as much money, you can get something that fits your budget.”

Kouns adds that food manufacturers are also taking steps to recover their costs. He points to cereal makers who downsize packaging but keep prices the same.

“A prime example is General Mills. If you look at their cereals, if you go from Corn Flakes, or Fruit Loops or anything right on down the line they start off where they used to have 20 ounce boxes, it went to 16′s, then 14′s, now it may be 12. And a lot of them are running the same prices. So, you’re gonna pay about the same price you’re just not going to get the amount you used to. Q) Are consumers aware that they’re buying smaller packages at some point? A) I think they’re aware of it. But, if your kid eats Fruit Loops you’re going to buy Fruit Loops whatever the size of the box is. Again, you don’t have a choice.”

Kouns has also noticed something else. He says shoppers in his store have cut back. Total sales have declined.

“We don’t get as many dollars as we used to as far as sales and whenever you don’t generate dollars you don’t generate that gross profit and its kind of tough to make ends meet.” Says Kouns.

Ohio State University economist Ian Sheldon says so far, food price inflation is mild and further food price increases will hinge in part on crop yields for wheat and corn later this year. Rochelle Williams will closely monitor grocery prices as she stretches dollars to feed family. And if prices keep going up she says she’ll double-down again.

“Go for more of the bulk foods instead of the regular shopping stores.”

Tom Borgerding WOSU News