As total student loan debt nationwide continues to exceed total national credit card debt, Binghamton University’s Financial Aid Services professionals are stressing the importance of budgeting.

The Student Loan Debt Clock, posted online by the FinAid Organization, reports an estimate of current student loan debt outstanding, including federal and private student loans. The clock is currently over $850 billion, increasing at a rate of about $2,800 per second.

While the clock is only an estimate for demonstration purposes, the actual total debt outstanding demonstrates more volatility at the beginning of each semester, when most student loans are disbursed, according to www.finaid.com.

Dennis Chavez, director of Financial Aid Services at BU, said that student debt, if done wisely, can be an investment.

‘I think debt is a good option if done responsibly,’ Chavez said.

He said Financial Aid Services is working to help students with the concept of budgeting, so that they are borrowing responsibly and looking for ways to cut costs in areas such as buying used textbooks and moving off campus.

‘Some students may only take 12 credits during a semester,’ Chavez said. ‘They may need another semester, which would add to the cost.’

According to Chavez, the good news is that it is easier to borrow money. That turns into bad news, however, as students may not realize the gravity of their situation.

‘I would anticipate that many students don’t really recognize how much they’re borrowing until it hits them in the head at graduation,’ Chavez said. ‘One thing we’ve been talking about is that we do need to remind students about it every year.’

Rachel Borbas, a senior majoring in theater, wishes she had gotten a loan that had the option to defer payments.

‘I wish I would have declared myself financially independent from my parents because I’m on my own, much like many other students are, I’m sure,’ she said.

Haley Chitty, spokesperson of the National Association of Student Financial Aid Administrations (NASFAA), said there are two main factors which have led to the increase in student loan debt.

‘The rise of college costs is one factor,’ Chitty said. ‘Tuition fees continue to increase, and more students than ever before are going to college.’

Chitty described this issue as ‘slow-growing over the last couple of years.’ He added that it has always been an issue, but now is more political and publicized.

‘Graduate school decisions could be affected,’ Chitty said. ‘Some students are deterred from entering college at all.’

Borbas is thinking about post-college options, such as working or pursuing a master’s degree, but is restricted by her debt.

‘I need to get money before I can afford to go through more schooling,’ Borbas said. ‘My loans are requiring me to work and not apply to a master’s program until I get more money.’

On NASFAA’s online tip sheet, the organization suggests options such as alternative repayment plans to lower monthly payments, loan forgiveness, which can cancel loan obligations, and deferments to temporarily suspend monthly loan payments.

Chitty stressed the importance of students understanding all the responsibilities and terms and conditions that come with borrowing student loans. Before borrowing private loans provided by a bank, it is important for students to exhaust all federal loan options, he said.