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For the majority of students loans aren't just a want. They're a need.
"I think it's very common these days," Texas Tech student Patrick Fukua, Jr. said. "For a lot of students it means the difference between going to college and not going to college."
With so much reliance on financial aid the debt deal isn't sitting well with students affected by the changes.
"Obviously, it'll be more to pay back, which is too bad," Fukua said. "Yet another thing, I guess, that may not be as good about student loans as it used to be."
Student Kacy Chandler says she's a little mad.
"You know we have to pay more than we would," Chandler said. "But I guess it's what you have to do to go to college."
Now those pursuing master's degrees with federal loans will have interest accrue while they're still in school. Before, the interest didn't kick in until after graduation, explains Texas Tech economist Bill Gustafson.
"That's going to impact students in terms of how much debt they really leave with," Gustafson said. He's a part of Tech's Center for Financial Responsibility. He says questions like whether graduates will be able to purchase a car or home or start a family will be raised.
Gustafson says students must consider these questions beforehand and decide if graduate school is worth the heftier price tag.
"Some will not choose to do that if they sit down and look at the mathematics of this change that's going to occur based on the new debt deal."
This means making sure the salary of your future career pays enough to pay the loan back in a timely manner.
"You don't want to be five years away from getting social security and still be paying on your student loans from 40 years earlier," Gustafson said.
He says knowing that interest starts accruing after you finish your undergrad should motivate students to stay on target because in this scenario wasted time is wasted money.
As part of the debt deal lawmakers also decided to nix one-time repayment incentives for all federal loans. The changes take effect July 1, 2012.
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