Student-loan debt soars

At the same time, the amount of aid money offered through federal grants has remained stagnant. The maximum Pell Grant of $4,050 per year has not increased in the past four years.

For Utah students, that means the buying power of the Pell Grant has eroded to the point that aid money makes only a small dent in tuition costs, Feitz said. In the end, students are forced to turn to loans.

The loan-volume increase also has some students taking longer to repay their debt, added John Curl, financial aid director at the U. The 10-year payoff periods of the past are now being stretched to more than 30 years, cutting into family budgets and forcing students to make life decisions based on student debt.

Hunsaker plans to put off his hopes of working in the public sector until he can get his loans paid off, a feat that will require him to pay much more than the minimum payment each month.

"I don't want my education to be a burden for me in the future and the family I'd like to have," he said. "Loans are so easy to get, and it puts students in a tough situation later on. A lot of people are caught off guard."

The July 1 interest-rate hikes are only going to paint a bleaker picture for most Utah students, Feitz added. They can, however, take a few steps to avoid paying that higher interest.

Consolidating student loans and locking them in under the current 5.3 percent interest rate could save students up to $5,000 in interest payments over the life of a $20,000 loan, he said.

"We're encouraging students to act now, don't delay," he said. "We want this consolidation application to get right to the top of their summer reading list so they don't ace themselves out."

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