A tuition hike next semester is just one of several financial headaches incoming and ongoing University of Memphis students will have to deal with.
Other burdens can include loans, rising student fees, food, housing, post-graduation debt and even credit management, to name a few. However, The Financial Information and Resource Center, an initiative of The University's Center for Economic Education and The MemphisDEBT Collaborative, could prove to be a handy solution.
Debts have been the top reasons for dropping retention rates, according to Julie Heath, chair of the economics department and director for The University's Center for Economic Education. She said having credit counselors come to The University to advise students and faculty on financial decisions is a plus in a world of rising academic costs.
"The typical student has a lot of debt and several seniors enter the job market in debt," Heath said.
The U of M has seen a dip in student enrollment in the past couple of years. In the fall of 2005, enrollment dropped to 20,465 from 20,669 the previous fall. The University is also projecting 20,342 enrolled students for the fall of 2006, according to the office of institutional research.
Of all the figures that make up total enrollment, the highest has been dropouts. OIR also reported a dropout projection of more than 5,700 for 2006 and 2007.
Heath said the mounting debts, which pile up every year and severely affect graduating seniors, have proven to be one of the top reasons for increasing student dropouts. However, she said, controlling debt could play a role in reducing those numbers.
FIRC has accommodated about 300 people a semester in the last academic year and Heath referred to the high number as a response to lower retention rates.
"It's been used a lot more than we expected," she said.
Joon Hwang, an assistant professor in the department of finance, also pointed to other reasons for student financial instability, like the number of students who are full-time workers.
"Some students have to support a family. They're not just financially managing for themselves," he said. "They have a lot of responsibilities and some have to take care of their families. They're working during the day and attending classes at night."
J.J. Jimenez, a database financial specialist for the financial aid office, said FIRC has been a useful tool for students since many campuses do not have financial management classes.
"I've never seen student management or personal finance," he said.
FIRC will hold two more Wednesday afternoon sessions from 1 to 4:30 p.m. and will end at the end of the month.
"It's the first of its kind in the state of Tennessee and the country and it's used as a model for other colleges," Heath said. "It's something The U of M should be proud of."
