Washington Week: Student Voices (O)

Site helps graduates cope with debt
By Kim Wilmath
Independent Florida Alligator (U. Florida)
04/09/2007

(U-WIRE) GAINESVILLE, Fla. — College graduates may be ready to buy a house or go on vacation, but a daunting debt may force them to put those plans on hold.

Interest on college loans starts accumulating shortly after graduation, which can make things difficult for students going into entry-level positions. But a new online service seeks to make students' debt more manageable.

Jamie Hernandez and her husband, Marcus, created Education Registry, an online service that allows parents, engaged couples and recent college graduates to ask for monetary gifts toward their educations.

When the two began registering for their wedding, all they really wanted was relief from $50,000 of dream-crushing debt due to student loans, said Jamie Hernandez, chief executive officer and co-founder of the company.

"We registered for fine china because everyone told us we had to," she said. "If we were able to pay off the student loans, we could get a house and use it."

The Hernandezes' wedding was in June, but the Web site wasn't up and running until August, so they didn't get to make use of their service. They created the site so other students could.

Ron Anderson, associate director for student financial affairs at the University of Florida, said the average UF undergraduate accumulates $14,830 in debt, according to 2004-05 statistics, the most recent ones available.

He said that figure is below the national average and UF is still considered to be fairly moderate in its costs. However, it generally takes about 10 years to pay back student loans.

"Obviously, it's good to marry someone who doesn't have any debt," Anderson said.

Education Registry is geared toward wedding and baby shower registries, but Hernandez said because of high demand, soon there will be a "general option" for birthdays or graduations.

It's free to sign up on the Web site, but a small percentage is taken out of the amount going to the student. The fee ranges from 2 to 6 percent, depending on how much money is shelled out.

Hernandez and her husband are still trying to break even, she said. As soon as they can generate sufficient revenue from advertising, they hope to eliminate the fees. For Hernandez, the best gift for any occasion would be to be free of debt, and she thinks many college graduates would agree.

"Some people can really benefit from this," she said.

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