Yesterday, I ran across the below political cartoon. It was shared by my very conservative cousin from Georgia. Actually, he’s from Virginia like I am, but he’s lived in Georgia for decades. Anyway…
Full disclosure. I have actually paid off my student loans. They were paid off about nine years early, back in 2018. I was originally scheduled to be finished to be finished paying in 2027. I made paying the student loans off a priority, and I am fortunate enough to be married to an extremely kind, generous, and cooperative man who was alright with helping me (a whole lot) in my quest to lose this obligation that hung over my head for so many years.
My mother had saved some money for me to attend Longwood University (then Longwood College), and I also worked during the summers. I still left my undergraduate career with Stafford loans, some subsidized and some unsubsidized. I think I borrowed about $10-$12K, but I’m not altogether sure of the total amount. I remember my parents were thrilled when I got the financial aid during my junior year. It was, and still is, a state supported school, but the price of attending rose significantly when I was attending in the 1990s. That school is also in a rural part of Virginia, where jobs in town were relatively scarce, and employers didn’t want to hire people who weren’t staying there year round. I didn’t qualify for enough work study to make that a viable option for me at the college.
Nevertheless, when it was time to graduate, I attended the mandatory video session during which I was reminded that I had taken out loans and they would need to be repaid. And after graduation, I paid every month on time and in full, although again, it was with help from others that I was able to do that. I was lucky enough to be living at home rent free.
After my first year post graduation, I joined the Peace Corps. In those days, it was possible to defer student loans. I did defer, but also arranged to send $30 per month of my readjustment allowance (then about $200 a month, I think) to defray the cost of interest on the unsubsidized loans. When I finished my service, I worked for a couple of years and paid on my loans– I think it was about $125 a month.
Two years after I came home from Armenia, I decided to attend graduate school. Because I would be going to graduate school, I was again able to defer my student loans. I was also able to take out more loans, which I did. Although I attended the University of South Carolina, which was out of state for me, after my first semester, I was able to land a job as a graduate assistant at South Carolina’s Department of Health and Environmental Control (DHEC). That gig didn’t pay well, but it did reduce my tuition to about 20% of the IN STATE rate– a HUGE savings. I also had a part time job on weekends and some evenings. Still, I needed loans, and when all was said and done, I graduated with two more degrees and five figures of debt, courtesy of my Stafford and Perkins loans.
About two months after I graduated from the University of South Carolina, I decided to consolidate my loans. Doing that took me out of my “grace” period, but locked in a 3.75% interest rate. I’m not sure what today’s rates are, but I bet they aren’t that low. I’ll also bet that today’s students, particularly during the pandemic, don’t have as much ease in finding well paying jobs, which even twenty years ago wasn’t that easy. Anyway, when all was said and done, I had borrowed $57,000 for all of my education– that’s for all three degrees. Even in the early 00s, that wasn’t too bad for all I managed to get. But it was still a lot of money for me. I wasn’t sure how I would repay it, even though I had fully intended and expected to find a good job.
Well… as you can see, I didn’t set any records on fire in the employment world. As I mentioned in the previous paragraphs, I was very fortunate in that I met and married Bill, who is an unusually empathetic and cooperative person. And once we were married, he was willing to help me pay for my loans. I started off paying $180 a month, which pretty much only covered interest and a tiny amount of the principal. At the time, we didn’t have much extra money because Bill was paying child support for three children and recovering from the financial disasters wrought during his first marriage. I was also trying to find work, but was unsuccessful.
I paid that same paltry amount for five years, until Bill went to Iraq and got a temporary salary boost. While he was deployed to Iraq, I used the extra money to pay off his credit cards in full. I also started paying extra toward my student loans. It wasn’t much at first– just $20 a month. Within six months, I was a full payment ahead. Slowly but surely, I added more money to the extra I was paying. It got to the point at which I started getting letters from my creditor telling me I didn’t need to pay. But I kept paying more and more until I was years ahead of schedule. And in 2018, when I was down to owing about $2000, I paid it off in one fell swoop. Put this in perspective– even after years of paying more toward my loans than I had to, when we moved to Germany in 2014, I still owed $40,000 on my student loans. By 2018, I owed nothing.
It seems crazy that I was able to do this. Looking back on it, it seems highly unlikely that I could have, if things had been any different than they were. If I hadn’t married Bill (who had a pretty checkered financial history– common sense should have told me not to marry him– in this case, I’m glad my heart won over my brain)… If I had had children (expensive even if they’re completely healthy)… If we had gone through infertility treatment or pursued adoption… If my parents hadn’t been self-sufficient… If we hadn’t stayed healthy… If Bill hadn’t been able to stay well-employed… If we’d had huge legal fees due to Bill’s ex wife and kids… If we had bought a home… If I had gone to a more expensive school… If I had dropped out or took longer than scheduled… If I had had a higher interest rate… If I had borrowed from private lenders… I also made a determination that I would pay off those student loans first, because they can’t be discharged in a bankruptcy and I didn’t want to have them hanging over my head if disaster struck.
Everybody’s situation is different. Yes, paying back loans is an obligation. However, I think today’s students have gotten a pretty raw deal. For one thing, even if a person chooses to attend a state supported college, states are not contributing as much money to higher education as they once did. That’s been the case for years. I remember one year when I was still at UofSC, tuition went up 15% because the state didn’t contribute as much. Tuition never seems to go down, either. For another thing, college has been vastly oversold, making degrees less valuable than they might have been. Not everyone should attend college. Some people aren’t ready to go. Some people aren’t academically inclined and should pursue a field that is more technical. But college should not just be reserved for the privileged who are lucky enough to be able to afford it due to the circumstances of their birth. It should be a place where academically talented people can go to build their skills in whatever field they want to pursue.
One of the comments I noticed on my cousin’s post was about how some degrees are “worthless”. It always bothers me when people scoff at any academic field. Maybe you don’t think a degree in women’s studies is useful, but it’s useful enough that people who have studied it have been able to get jobs teaching it, researching it, writing books about it, or even making fun of it. I know many people think the arts are “worthless” pursuits. I heartily disagree with that. I was friends with many music majors when I was in school. They were among some of the most talented, hardworking people I knew in college. They had to be hard workers, since they took so many one credit courses that met three times a week. Moreover, the arts make the world a better place to be. And ditto to those who think English is a worthless degree. Being able to write, think critically, read carefully, and speak the language coherently are vital skills that are lacking in many people. If you don’t believe me, hang out on social media for awhile.
I also think people should be careful when they dismiss the pursuit of certain occupations as a waste of time. Everyone is unique, and we all have different skills and talents. One could argue with me that I should have studied accounting because it’s a well-paying field. But I am not good with numbers and I’m not particularly detail oriented. I would have struggled in an accounting degree program and probably would have hated the job. That would have made me a mediocre and probably unsuccessful accountant. And that would also make me a lot less employable. I am, however, really good at music and writing. I would stand a much better chance of being gainfully and successfully employed in jobs that use those skills and talents, even if there aren’t as many lucrative jobs. The world doesn’t need any more shitty accountants. And maybe the world doesn’t any more writers or singers… but at least I do those things reasonably well and enjoy the work. Those skills and the personal qualities affiliated with them can also transfer to other jobs.
I will agree, however, that too many people choose to go to college when it’s not a suitable choice for them. And there are cheaper ways to get a degree, too. A lot of people are overly concerned about going to “prestigious” schools, when a state supported school or even community college would suit them fine. Lots of people get college education through the military. That’s what Bill did– all three of his degrees came from private schools and were mostly paid for through scholarships and his G.I. Bill. He even has some money left of his G.I. Bill. These are topics that are worth discussing, especially with people still in high school. BUT– I also think the government should take steps to reduce the cost of college and relieve some of the debt burdens on young people.
I am 48 years old. I finished paying student loans in 2018. I expected to be paying until I was in my 50s. I don’t have any children. One of my parents is dead, but the other is in her 80s. She is, thankfully, reasonably healthy and very self-sufficient, and I also have sisters. But what if I was having to pay my loans, support children, and pay for a nursing home for my mom? What if I also had a mortgage to pay? What if I also had a chronic health issue that wasn’t covered by health insurance? What if I didn’t have health insurance? Or… what if I had a financial setback that led to being late on a bunch of bills? When Bill and I first got married, he was recovering from foreclosure and bankruptcy brought on by his ex wife’s irresponsible spending and his failure to take control of his finances. It took years of effort to climb out of that hole. Fortunately, we weren’t distracted by the misfortunes that befall so many people. We were VERY lucky. I was especially lucky. I hit the husband lottery.
Anyway, what I’m saying is that it’s not as simple as borrowing money and paying it back. Yes, I agree that repaying loans is a responsibility. But the cost of education should not be so heavy that young people are saddled with debts that make it difficult or impossible for them to ever get out from under the burden. And we need to do a better job of teaching young people about alternatives to college and encouraging them to take them. There should be no stigma toward those who choose a different path.
This morning, as Bill and I were talking about this, I looked at our investments, which I started doing on a very small scale back in 2012. I think I initially invested about $1000. Well, that amount has grown almost 50 times– before long, we will have investments that will total in value as much as that initial consolidated loan was in 2002. Without me, Bill wouldn’t have that money, because it never occurred to him to invest. He knew nothing about it and had neither the time nor inclination to learn. So I like to think of that as paying him back somehow… although he says that having me around is payment enough. See? I hit the husband jackpot! 😉 Perhaps I should think of it as Bill investing in me and getting a return.
P.S.– I made another song…