Hundreds of University of Massachusetts students squeezed by the increased costs of their education are taking on new debt to finance it, often in the form of higher-interest alternative loans, according to the UMass Amherst financial aid director.

Five years ago, UMass students took out about $1.5 million in such loans, according to Ken Burnham, director of financial aid. This year it’s $12 million, some $10.5 million more.

The seven-fold increase is the latest sign that students are being pushed financially in higher education across the board, Burnham said.

“In the 1999 to 2000 school year, students’ alternative loans averaged $5,600,” said Burnham. “During 2004-2005, the average was $8,600.”

Not only are the amounts being borrowed increasing, but also the numbers of students taking out such loans.

“Five years ago about 250 students at UMass were taking out alternative loans, today, it’s over 1,440, almost six times as many,” said Burham. “Some 1,050 of the 1,440 are in-state residents, the other 350 are out-of-state residents.”

According to the UMass Office of Institutional Research, fees have increased by $3,715 in the last five years for in-state students and $4,494 for out of state students. Tuition has increased by three percent in the last year. Next year’s in-state tuition will be $2,640, out-of-state students will pay $9,937.The total in-state tuition for 2005 will be $9,557, out of state will pay $18,006.

“Students borrowing through alternative loans has increased significantly,” said Burnham. “It is a statewide and national phenomenon, this is not just at UMass.”

“The reason for this is very simple, the cost of education is growing.Tuition and fees are rising nationally.This, along with the economy, inflation, and the increased cost of living are pushing more students to their financial limits,” said Burnham.

“There is a rising population of parents having children later in life, and they have retirement to think about,” said Burnham. “So parents are putting more burden on their children to pay for the cost of higher education.”

An alternative loan, Burnham said, may be defined as a private educational loan offered to a student to supplement financial aid in addition to financing the cost of education.

Almost anyone may take out an alternative loan for their education, Burnham said, and such loans are not necessarily need-based. However, students and their parents usually take out alternative loans only after federal loans, which tend to cost less, have been taken out to the maximum amounts.