Is it worth it? Student loan debt: A real borrower's story

I started this blog because I moved half way across the country away from most of my family and friends. I wanted a way to stay connected with them and share what was going on in my life that was not possible through Facebook, which doesn't cut the mustard in my opinion in terms of offering context of content shared. Mostly, I wanted to share light-hearted items, funny stories, and big changes that happened in my life or special moments that I wanted to elaborate on further.

But something about the upsurge in discussion on student loan debt and the financial crisis has my feathers ruffled and I wanted to bring some attention to it by sharing my story.

I attended Kansas State University for my undergrad and I paid my way using student loans. I took out loans for everything: tuition, living expenses, books, etc. I did it because that's the only way I could afford to go to school. I didn't come from an affluent family that could just shell out 5 grand+ a semester (for both my brother and I) to cover tuition, housing, utilities, books and groceries; all the basics required for attending college. After I graduated, I didn't get a salaried full time job right away (that was in Jan. '08 when the economy was on its way to hell in a hand basket) but when I eventually did, the pay wasn't near the student loan debt I accumulated after 4.5 years for my bachelor's. RED FLAG FOLKS. THAT'S A HUGE PROBLEM. How is our society advocating the pursuit of higher education when the amount of debt incurred for the knowledge and skills the universities are providing is more than the salary you'll make in the job you HOPE to get after graduation?

I'm in grad school now and I hold an assistantship that covers the cost of my tuition. When I go to look at my student fee bill, my assistantship shows the amount my assistantship covers of my tuition (100%) and then it shows me the additional fees assessed by the university (about a $1,000 worth) and that thousand breaks down to "activity fees, registration fees, technology fees, etc." Believe you and me, I called up the financial aid office and asked them to specify EXACTLY what each of those entailed. My tuition exemption still doesn't cover my books, which are required by all classes and can amount to $500 to 1,000. I also get a living stipend, but with most of the places to rent from starting at a minimum of 450-500 per bedroom around here, that eats up half of my stipend and I still have to eat, pay bills, buy gas, you get the idea. So, without Kyle bringing in extra income I would eat Ramen noodles every night. YUCK AND SO NOT HEALTHY FOR YOU.

Here in Louisiana, they have a program called TOPS (Taylor Opportunity Program for Students), which basically is a scholarship program for in-state high school students to go to school for free as long as they graduate from HS with a certain GPA and earn a certain score on the ACT. And they keep their scholarship by maintaining certain grades each year. Let me tell you folks, they didn't have ANYTHING like that in KS when I went to college. You had three options if you came from an average income home: your parents paid, you went on student loans or you were at the top of your class and got a scholarship. I'm a hard worker and a good student but I've never been at the top of my class. I wouldn't be sitting on student loans that equate to the price of a brand new car if I was.

So, that brings me to this bill that Congressman Hansen Clarke (D-Mich.) introduced  on March 8: H.R. 4170, the Student Loan Forgiveness Act of 2012.

"Total outstanding student loan debt officially surpassed total credit card debt in the United States in 2010, and is on track to exceed $1,000,000,000,000 during 2012; Excessive student loan debt is impeding economic growth in the United States. Faced with excessive repayment burdens, many individuals are unable to start businesses, invest, or buy homes; Because of soaring tuition costs, students often have no choice but to amass significant debt to obtain an education that is widely considered a prerequisite for earning a living wage."

Here's what the act would do:

1. 10/10 Loan Repayment Plan: Cleverly called 10/10, the plan caps payment amounts at 10 percent of a borrower's discretionary income

2. Capping interest rates for all federal loans: The act would cap the interest rate on federal loans at 3.4 percent.

3. Improving Public Service Loan Forgiveness: The act would also provide for Public Service Loan Forgiveness after 60 monthly payments instead of 120.

4. Refinancing private education loans: Certain eligible borrowers would be able to obtain a Federal Consolidation Loan to discharge private loans (which lack the protections of federal loans).

More for details see the full article here. 

I've taken out a few loans to cover the cost of that additional $1,000 that the school dubs "other fees" and so when I'm totally done with my Masters, I'll be sitting on student loan debt of about the price of a fully loaded brand new Jeep Cherokee. If I can't land a job after graduation in this downtrodden economy that amounts to that how the hell am I ever going to get out from under that sum of money??? Kyle and I don't have much credit card debt, we don't own new cars, we don't own our own home yet, we don't go on lavish vacations or live outside our means. I certainly don't want to take on any of those things without first addressing my student loan debt. 

I'm not advocating that I not pay anything for my education. I'm just asking for it to not keep me in the poor house or hold me back. Because, in the end, isn't education suppose to allow you the chance at an enhanced quality of life and more opportunities?

How do you feel?