Iowa is ranked sixth in the nation when it comes to student debt, according to USA Today rankings.

ISU students who graduate with debt graduate with the highest amount of debt among the three regent universities.

The average indebtedness for a graduating ISU student in 2012-13 was $29,458, according to a Board of Regents April docket item. This is a slight decrease from $29,573 from the previous school year.

This is about $4,000 higher than the national average.

Iowa State’s three-year cohort default rate is also the highest among the three regent universities.

A cohort default rate is the percentage of a school’s students who borrow, enter a repayment option and then default within three fiscal years.

Roberta Johnson, director of student financial aid, said this is not good for students’ credit rate.

“If you default a student loan, you could be shut out of credit for anything,” Johnson said. “You want to buy a new car? Forget it.”

She said students should protect their credit ratings like credit cards because student loans also get reported to credit bureaus.

This lack of paying off student loans can have an effect on job searches, Johnson said. 

“If you’re not responsible on how you pay off [student loans], that could have a detrimental impact on you in terms of a job and in terms of future credit you hope to occur,” Johnson said.

Johnson said some jobs, especially federal and state government, require the applicant go through a background check. A financial background check will be one of the factors employers look at, she said.

She said a job with the government would require an “exhaustive search.”

“They have special agents who actually come to the financial aid office and inquire about the indebtedness that students have here and whether or not they’re in good standings on their loans,” Johnson said. “It can definitely hurt you if you aren’t responsible about how you pay off your debts.”

Phillip Truong, who will be graduating May 2014 with a degree in supply chain management and a minor in management, said he will graduate with about $45,000 in debt. Of this amount, he said about $30,000 comes from from filling out the Free Application for Federal Student Aid while the remainder comes from Wells Fargo.

Truong has decided on a 10-year repayment plan and already has a job lined up in Omaha, Neb.

“I kind of lucked out in that part,” Truong said.

Truong said he had no other choice but to take out a loan to pay for college, as his four older siblings also attended Iowa State and needed to take out loans, as well.

“I just didn’t have the money,” Truong said.

Truong said he is somewhat nervous about having to pay off his debt, but he said setting up a budget calculator helped manage his stress.

Johnson said there are tools online at both the student financial aid’s website and the human development and family services’ website. The human development and family services college offers a financial counseling clinic where students can set up an appointment to help them create a budget.

Johnson said the office of financial aid is always open to students, and an appointment is not necessary. She said that if students call ahead, though, it will give financial counselors a chance to pull up the student’s financial information.

Johnson said she tells students the cheapest loan they will ever have is the one they don’t take out.

“If you’re not responsible about taking care of your debts, why would [a company] want to trust you with decisions, property or anything that has to do with the company?” Johnson said.