The college graduates who proudly receive their degrees this month soon will confront a sobering fact.

Many have racked up thousands of dollars of debt to finance their education and payments will come due.

Last year, the typical Cal State Hayward graduate with a student loan had $12,584 to pay off during the next 10 years.

The average debt for a UC Berkeley graduate was $16,354, while a typical St. Mary's College student with loans faced a $19,953 burden.

Borrowing has escalated in recent years as student fees and tuition costs rose and parental income and grant money failed to keep pace.

Many students now leave school facing years of repayments, a prospect that affects decisions about jobs, lifestyles and major purchases.

"They can't think about taking a year off and seeing the world," said Rhonda Johnson, associate director of enrollment services and financial aid at Cal State Hayward.

Many experts expect the trend to continue, at least for the near future.

Gov. Arnold Schwarzenegger has proposed a 14 percent jump in undergraduate fees next year at University of California and California State University campuses.

That would be followed by 8 percent annual increases the next two years.

Their first experience with debt can be nerve-wracking for many graduates, particularly as they watch the numbers climb.

"I'm trying not to go above $20,000," said Tecsia Ross, a UC Berkelely junior majoring in psychology and dance.

She has taken out $15,000 in loans while her mother recently borrowed $1,000 to help pay Ross' expenses.

"This year, it has definitely been nagging me more than before," Ross said. "It is a big debt to run up."

Yet her debt remains small compared to some students.

Graduates seeking medical or law degrees can take out loans approaching $100,000. Some will have after-graduation payments of $500 or more a month.

UC Berkeley senior Martine Rouzan has decided to move back in with her parents after she graduates this month with a degree in mass communications. Her loans total between $10,000 and $15,000.

Her parents told her they won't charge rent while she works full-time in a marketing or public relations job she has yet to obtain.

"I decided to stay at home for a year just so I could try to pay the loans off as soon as possible," Rouzan said.

"It's kind of overwhelming with the amount of debt you can get into. Then with the economy the way it is, you don't even know if you're going to have a job after you graduate."

In addition to student fees, increases in housing, textbooks, food and other expenses have put the squeeze on many families.

During the past decade, tuition at four-year institutions nationwide jumped 38 percent, according to the College Board. Yet the median income for families likely to have college-age children rose just 10 percent.

As a result, the average loan per student shot up 147 percent during the decade.

"Students are borrowing more because there seems to be less grant alternatives for them," Johnson said. "We are rarely able to meet the cost of attendance for our students just by offering grants."

Today, loans make up 54 percent of the financial aid for undergraduate students nationwide. Grants and tax credits, which don't have to be repaid, make up 45 percent.

At St. Mary's College, the average debt for graduating students with loans climbed from $17,465 in 2000 to $19,953 this year.

"We have seen that go up $800 to $1,000 each year," said Billie Jones, St. Mary's director of financial aid.

Between 60 percent and 65 percent of the students at St. Mary's participate in at least one financial aid program.

The escalating debt causes some graduates to put off buying a home or making other major purchases, Jones said.

It may also influence career choices by prompting some to opt for higher-paying jobs instead of working at a nonprofit organization.

With an eye on the future, many students with loans decide to work part time while in college.

"Debt really does make them nervous," Johnson said. "But any time a student works, they lose some of their college experience. There are some students whose grades suffer."

Next fall, perhaps for the first time, student fees at Cal State Hayward will come close to the maximum federal loan amount of $2,625 for a freshman, Johnson said.

In the past, "we've always been able to say that every student can borrow enough money to pay fees and possibly purchase books," she said. That may no longer be the case.

Congress is debating whether to raise the maximum loan amounts as it considers reauthorizing the Higher Education Act.

The issue has also become swept up in the presidential race, with Democrats and Republicans sparring over the best way to give families some relief.

The revised budget proposal Gov. Arnold Schwarzenegger released this week contained one bit of good news for students needing assistance.

The governor proposed allowing the California Student Aid Commission to increase the amount of Cal Grants next year to keep pace with student fees and tuition hikes. The increase was in doubt because of the state's financial woes.

"Borrowing has been on the rise in California as it has across the country," said Diana Michel, director of the Student Aid Commission.

In 1990, California students borrowed $1.3 billion in federally sponsored loans. By 2003, student borrowing in the Golden State reached $3.4 billion.

Students who have difficulty making their payments after graduating have several options, noted Martha Holler, a spokeswoman for Sallie Mae, a company providing federally guaranteed student loans.

Graduates can apply to have their payments extended beyond 10 years (although that would increase interest costs), or seek an economic hardship or unemployment deferment.

Students who go on to graduate school also can have their loan payments deferred.

There also are ways to lower the debt through incentives for paying on time or setting up an automatic debit, Holler added.

The interest rate set by Congress for federal student loans is now 2.82 percent while in school and 3.42 percent after graduation.

Holler noted that students with a college degree will earn on average $1.5 million more during their professional career than someone with only a high school diploma.

"Higher education is a very good value for students," said Cheryl Resh, UC Berkeley's director of financial aid. "It's still the best investment they've got."