President Obama recently announced measures to mitigate student loan debt repayment, due to increasing costs of tuition. This year total outstanding student loan debt passed $1 trillion, now exceeding credit card debt.

The Project on Student Debt reported Thursday that Minnesota students who took out loans graduated with an average debt of $29,058, the fourth highest in the nation.

The study showed 71 percent of the Minnesota 2010 class graduated in debt, the fifth highest share nationally. These figures were compiled by an affiliate group of The Institute for College and Success.

Kris Roach, St. Thomas’ director of admissions and financial aid, said St. Thomas student debt averages to approximately $21,486 for federal loans.

“When you consider the private loans our students borrow, in addition to the federal loans, the average is approximately $31,073,” Roach said.

Sophomore Noel Naughton has student loans but does not plan on graduating with much student debt.

“I am an RA right now, so that helps cut down a lot,” Naughton said. “I am able to pay for it out of pocket.”

Junior Quinn Wrenholt and freshman Nick Willmarth do not have student loans but understand the necessity for some students.

“I consider it kind of a necessary supplement to any high-level education,” Wrenholt said. “The prices have kind of sky-rocketed in the past few decades.”

Willmarth said, “If everything stays as it is… I won’t have any loans. I am trying to avoid loans, but I think they do really help for the people that need them.

Historically, the rate of default on loans by St. Thomas students has been less than 1-2 percent, Roach said.

Obama will use executive authority to expedite the process, moving the start date from 2014 to 2012. The plan reduces the maximum repayment on federal student loans from 15 percent of discretionary incomes to 10 percent. The White House said about 1.6 million borrowers could be affected, and that remaining debt would be forgiven after 20 years, instead of 25.

Borrowers already in default will not qualify. The plan only applies to borrowers who take out a loan in 2012 or later and who also took out a loan sometime between 2008 and 2012.

Loan consolidation will be implemented for borrowers from two federal programs—direct lending and the Family Education Loan Program—to consolidate loans at an interest rate of up to half a percentage point less.

According to Roach, in the 2009-2010 school year, 2,815 St. Thomas students received Direct Federal Loans, which were subsidized. That number rose in 2010-2011 by 141 students. In 2009-2010, 3,206 St. Thomas students and 3,380 in 2010-2011 received unsubsidized Direct Federal Loans. However, these numbers are not necessarily mutually exclusive. Some students fall in both categories of ‘subsidized’ and ‘unsubsidized loans.’

Sophomore Michale Cahanes has federal subsidized and unsubsidized loans and private loans.

“I am not in too much debt,” Cahanes said. “Just trying to keep making my interest payments.”

The loan consolidation programs could affect up to 5.8 million borrowers, according to the White House. The loan consolidation will not affect new borrowers, however, those with existing loans may potentially benefit.

According to the College Board’s findings, roughly 56 percent of 2009-2010 bachelor’s degree recipients at public four-year colleges graduated with an average debt around $22,000. Private nonprofit university graduates were higher—65 percent around $28,000.

Nationally, the cost of a full credit load has passed $8,000, an all-time high—not including cost of living, according to reports published by the College Board.

Roach said these findings will facilitate a lot of discussion in the political arena.

“What happens to these and other aid programs is likely to be a talking point for both parties (in the 2012 elections),” Roach said. “In other words, we anticipate the environment to remain dynamic around student loans and federal and state financial aid programs.”

Patrick Roche can be reached at roch6667@stthomas.edu