student debt

University of Kentucky

Michael Lewis got fed up seeing his peers struggle with student debt—so he decided to do something about it.

Lewis, an 18-year-old from Louisville, and a small team of his fellow students at the University of Kentucky are preparing to launch a start-up that takes direct aim the nationwide issue of student debt.

The start-up, called FinanceU,will give prospective college students a platform to fund their own education through crowdsourcing.

“FinanceU (will be) available to any student who seeks to or is already trying affording higher education,” he said.

To use, FinanceU students will have to create an online profile, complete with hobbies, skills and interests. Then, the start-up will employ a three-tier crowdsourcing model.

Tuition and fees at most community colleges are pretty reasonable these days, about $3,500 a year. Which is why the vast majority of community college students don't take out loans to cover their costs. But, according to the Institute for College Access and Success, a non-profit advocacy group based in California, nearly a million community college students who do need help paying for school don't have access to federal student loans.

The president of WKU is on the list of speakers at a forum on rising student debt being held by the Federal Reserve Bank of St. Louis.

WKU President Gary Ransdell is in Missouri Monday for the event titled “Generation Debt: The Promise, Perils, and Future of Student Loans”.

According to a report from the Federal Reserve Bank of St. Louis, the average student debt per follower grew from $16,000 in 2005, to $25,000 in 2012. The College Board found that an estimated 66 percent of seniors graduating in 2011 had student loan debt.

Economic and education analysts are increasingly worried that the growing debts faced by college graduates will impair the upward mobility of young Americans.

Monday’s forum on student debt is being webcast live from St. Louis, beginning at 12:30 pm central. You can see that webcast here.