I SHOULD BE A DOCTOR
TWICE with the money I spent on my higher education, but I'm not. I was a naïve,
ignorantly optimistic student who just kept on going to school. I would sign
those promissory notes with impulsivity, & I did not even understand how
interest accrued until my grand total reached $210,000.00; I will die with
these student loans.
I went through a
time when I would cry myself to sleep worrying about what was going to happen, until I reached a point where I accepted that student loans would be my ball
& chain indefinitely. I realize that sounds histrionic, but it's true.
If
you max out several credit cards with purchases like TVs, booze, or expensive
vacations, you're in much better shape than someone with excessive student loan
debt. Why? In 2005, federal legislation prohibited the discharge of student
loans in bankruptcy. Unless you can prove "undue hardship", there's
no relief in sight (Student Loan Borrower Assistance, 2016). It's not easy to prove.
Less than 1/2 of 1% of borrowers successfully
discharge their student loans in bankruptcy. "Undue
hardship" has 2 required components:
- The borrower, if forced to pay back the loan, would be unable to maintain a minimal standard of living.
- Strong evidence exists that these circumstances are likely to persist in the future.
Meanwhile, the cost
of higher education climbs persistently in contrast to inflation trends.
Dollars are not spent on classroom instruction, however. Amenities, such as
recreations centers, etc. are school priorities. My fear is that your ability
to acquire a post-secondary education will increasingly depend on socioeconomic
status, further exacerbating income inequality for disadvantaged students. (Washington Post, 2016)
For
anyone as ill-informed as I was when taking out student loans, I urge you to
become familiar with this formula to see the true cost of your education (Dept.of Education, 2016):
Interest rate × current
principal balance ÷ number
of days in the year = daily
interest
I was able to participate in a rate reduction program
for some private loans & the Income-Based Repayment Plan for my federal
loans. Both help me keep my head above water. I hope federal legislation will
offer some relief for borrowers in the future. I buy a lottery ticket every now & then; I
feel certain this will pan out eventually. In the meantime, know that you are not alone if
you spent way too much money on your education.
