Jaclyn Cabral always knew she would attend a reputable university. She knew Elon University was her first choice when she stepped onto campus.

But what the 2011 alumna didn't know was that she would be without a job months after graduation — and more than $90,000 in debt because of student loans.

"You can't get a good job without an education, but you can't get an education without being in debt," she said. "It's a vicious cycle."

Cabral is one in a growing number of recent college graduates struggling under the weight of their loans.

Not only is the average student loan debt $24,000 for the Class of 2009, according to a report from the Project on Student Debt, but the number of students taking out loans has increased dramatically. A decade ago, a third of college students had to borrow money. Now, that number is up to two-thirds.

A serious crisis

The student loan crisis is headed in much the same direction as the mortgage crisis of recent years, according to Greg Lilly, associate professor of economics.

"(Loan agencies) didn't make really smart investment decisions on who to give loans to," he said. "They probably lent out too much to students who were much riskier than they thought in terms of paying it back."

Besides major increases in tuition, Lilly said he speculates that the job market is a key factor in the problem.

"A lot of these loans are taken out under the assumption that students will graduate and immediately land a good-paying job that will allow them to repay," he said. "The unemployment rates are still high, the economy is still struggling, college graduates are still (trying) to find permanent, well-paying jobs. It leads to higher defaults."

In Cabral's case, she expected little-to-no trouble finding a position after college, especially thanks to her competitive internship at the Hill Holliday advertising agency the summer before her senior year. The reality is that while she has been called in for numerous interviews, she hasn't landed the job.

"I'd love to be in an ad agency doing project management or producing but because most of those require experience, I'm trying to go in as an assistant account executive and become more valuable and move in that direction," she said.

In some cases, Lilly said there is a disconnect between what jobs are available and what students choose as majors. By choosing a major with limited career potential, students end up hurting themselves.

"I think often times professors tell students to major in this because you're going to find it interesting or it will be fun," he said. "But professors want to have students in their classes, but often they're not thinking about what comes after college graduation. College is college and the real world is something very different."

A long-term problem

According to a recent report from the U.S. Department of Education, the default rate on student loans within two years of entering repayment was 8.8 percent for fiscal year 2009, up from 4.5 percent for the fiscal year 2003.

The consequences are serious for both the lender and the borrower, Lilly said.

"Loans are typically the way banks make money," he said. "They engage in an information search to make sure the borrower is a good credit risk. So you're supposed to gain information on collateral in case the person defaults, income prospects, grades. You know this potential borrower better than anyone else."

By providing a loan, the bank is taking a risk, but if its preliminary information is correct, the borrower will pay back an excess of what he or she borrowed, meaning a profit for the bank or lender. Defaults not only force lenders to take a loss, but can impact the borrower, particularly students with college loans, for the rest of his or her life.

"It hurts their reputation, it hurts their credit score," he said. "It's going to be tougher to get loans in the future. They won't be able to get another student loan, a car loan, a mortgage, until you can build up your reputation again."

Currently employed at a local restaurant, Cabral said she has claimed forbearance on her loans for the time, meaning she has informed the lender that she is currently experiencing a financial hardship and is unable to pay. Otherwise, she would be paying about $900 a month, an amount she simply can't afford.

This process of delaying repayment can only extend through a year, but Cabral said she is hopeful that she will be employed and more financially stable by January.

"I'm trying to stay optimistic and am still applying everywhere," she said. "I've been talking to Ross Wade (career counselor), talking to Elon alumni I was friends with. The past two months have been networking."

Stereotypes challenged

Cabral was one of 10 recent college graduates featured in a story by the Huffington Post called "Majoring in debt: College students struggle under the weight of loans."

"In a country where education is highly valued and reviewed as a necessity, the cost is simply outrageous," she wrote in a brief biography on the site. "Even if I get a job with a good starting salary in my field, I know I will be paying back my college loans for almost the rest of my life."

Her stance on the price of a college education was not met without some criticism. One commenter questioned why "students from average blue collar families feel compelled to attend very expensive private schools." Another said Cabral "hijacked" her younger sister's education and should pay for her to attend college. Others said it was her decision to attend a private university.

But, Cabral insists, she made the right financial decisions and the cost of her education was well worth it.

"Elon is a well-recognized university known to provide the best education for the money spent," she said. "It was totally worth it for me and the experiences I've had. I'm in debt and the economy sucks, but I'd never take it back. There is no reason not to have the same opportunity as anyone else. It's not fair that people's grandparents who have millions of dollars can afford to go, but people who work hard can't."