Despite reduced tuition increases, students in Iowa and across the nation continue to borrow more to pay for the cost of their education.

According to “Trends In Student Aid 2005,” published by the College Board earlier this week, although nationwide student grants awarded increased 4 percent, the amount of student loans borrowed increased 8.9 percent.

Roberta Johnson, director of student financial aid, said tuition increases have contributed to greater student borrowing.

“We are really no different than any other school. We have had some years with more than a 7 percent increase,” she said. “This year it was only four, so that’s a good thing.”

Johnson said although tuition increases eased, other costs of attendance continue to rapidly climb, including room and board, books, insurance and transportation costs.

“When you have increases in all these areas, it means the total cost of attendance will increase and some students will be borrowing to meet their cost of attendance,” she said.

Iowa Board of Regents President Michael Gartner said students’ debt following graduation continues to be problematic.

“The amount of debt that a student has when he or she graduates is distressingly high,” he said. “I think that is why universities try to stretch to get students to graduate in four years.”

According to the 2004-05 Student Profile, approximately 29 percent of ISU students graduate in four years. Although growth in federal grant awards decreased, Johnson said Iowa State has increased student grants.

“Iowa State University has done a very nice job of increasing the amount of dollars made available to students through grants and gift funds to students,” she said.

The ISU Foundation has successfully worked to build privately funded scholarship programs from alumni, Johnson said.

“They graduated in that area and have a fondness for that area and they want to help a student in that area,” she said.

“Some donors remember how needy they were and they got a scholarship while in college.”

Doug Borkowski, financial counselor for the Financial Counseling Clinic, said he tries to help students develop college funding plans to avoid excessive borrowing.

Gartner said despite tuition increases, tuition costs at Regent universities remain competitive against neighboring state universities.

Student borrowing increases will continue to grow more rapidly in the future than federal grant awards, Johnson said.

“The trends continue to show tuition has gone up and federal programs have stagnated,” she said.

“I don’t see any increases in gift funds that are going to be coming.”