Those in debt say they try not to think about it. Now, it's scary to think about the money. Paul Garrard, AAMC's director of student financial aid services, points out that the cost covers three components- tuition and fees, allowance for books, supplies, and equipment, and allowance for living expenses. These numbers can be seen as a result of a changing borrowing environment for students. Another environmental change is the Master Promissory Note for Stafford Loans, easing the loan process by allowing borrowers to sign once for their Stafford Loans, thereby avoiding the application and promissory note process for each year of the loan.
Technology is also a factor in the increased demand for loans.
The application, approval, and disbursement processes are now electronic, making it easy, and attractive, for people to apply. Another issue is that residents, who before could seek deferments based on their residency status alone, must now prove economic hardship for deferments and loan consolidation. Can Help Students have become very familiar with the interior of their school's financial aid office. He adds that borrowers have a responsibility to familiarize themselves with the services offered. Harvard's Matthew Allen, who has a degree in Economics, says that for him and many of his classmates, fathoming the amount of debt they carry is difficult, especially because many have never held a well-paying job.