In the personal finance sphere, we often hear that student loans are “good debt”. After all, people can take away your car, your house, but not your education! Even if I become penniless, I will have my B.A. and M.A., a lot of experiences and a ton of memories.
But was it really worth $81,000? No.
I admit that I could have gone to a cheaper graduate school and not moved to New York. But I got sucked up in the dream of living in one of my favorite cities. I dreamed about who I’d be with my Master’s, graduating from a well-regarded university. I fantasized about climbing up the success ladder and reaching my full potential.
Like with any good story, it didn’t exactly happen that way.
When I tell people how much debt I am in, people are usually pretty shocked or uncomfortable. This usually segues into a discussion about how Higher Education has become Big Business and that the schools are failing us. I completely agree and feel that no student should be put in a situation that they are set up to fail. They are released into the world with new-found enthusiasm and knowledge, just to struggle. While I take full responsibility for signing the papers, and for paying back my loans, I still don’t think it’s right.
Debt Dreaming
One of the sick games I like to play in my head is:
What else could I have done with $81,000?
The list goes on and on. With $81,000 I could travel for several years around the world. As a travel addict, my wanderlust heart is full of adventure, dreams of the unknown, and experiencing other cultures.
I also think about starting my own arts nonprofit. 81k would be a nice start to getting some things done.
Aside from my own entrepreneurial desires, I imagine how much I could help others by donating $81,000. Imagine how many lives I could tangibly change if I donated $81,000 to fight hunger, homelessness, and violence. Money can’t buy you everything, but it can buy you a lot.
Of course this game is utterly pointless, as I don’t have $81,000 sitting around to do these things. If I did, I wouldn’t be in student loan debt 🙂
Sometimes I get down about my student loans, and people try to encourage me by saying, “your education is worth it” or “there’s no price for a good education.” Is that really true though? I think there are so many ways to achieve knowledge, and they are not confined to the walls of a school. I am an advocate of higher education, but I know it’s not for everyone.
I think about these reactions and think about how much we glorify student loans and justify them as a means to an end. If you tell people you are going back to school, most people will say “Congratulations!” Student loans have become normalized. The fact of the matter is, nowadays education can be just as risky as buying a house or any other business investment.
Let’s think about turning this on its head:
If I were to tell you, I took out an $81,000 loan to travel the world for a few years and volunteer, people would say I’m crazy. But I think in all honesty, when it comes to value, education and the human experience I would have gotten a lot more out of volunteering and traveling for a few years than I did with my schooling. But people don’t do that.
Somehow going into massive student loan debt makes sense—it’s legitimized in the system we are in. We automatically associate more education with more power, more success. But what if that “power” backfires? What if people think you are “too good” for the work you used to do? What if that power has left you more powerless than before? Imagine working so hard for something just to then take it off your resume, or remove any mention of it just so you can try to get ahead.
THE SYSTEM IS BACKWARDS!
I can tell myself that I achieved one of my life goals with getting a Master’s. I achieved a second one by living in New York. That was worth a lot, but not worth several years of my salary in debt.
I wish I had more confidence to pursue other crazy dreams, like travel, like volunteering instead of school. I think we should all stop saying that student loans are “good debt” and focus on actual student loan reform. Speaking up, and speaking out. Making our voices heard….and most of all humanizing the experience in hopes of allowing future students the ability to pursue their wildest dreams.
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14 comments
I am currently in an MBA program where your cost of attendance for 2 years is $150,000 (if you don’t have any savings, family assistance, or scholarships). Fortunately, I got a bit of all three, but it’s still a pretty scary undertaking. I think students really have to consider the market value of their education, and see if taking out big loans is feasible. A future ER doctor can pay off $250K loan once they start working, while a future social worker may struggle with a $50K loan.
That is crazy and definitely scary. Students should definitely consider what their salary will be post graduation. I don’t recommend students going to grad school in the arts or humanities, but that is just me. But for some people it feels like the only option if they want to teach, or do some specialized thing. I thought I wanted to become a professor, which is why it made sense for me, but now I’ve changed my mind!
I think there needs to be frank discussions with future students about “realistically” what they can expect with going to school. That might mean giving up the dream city to go somewhere locally, or working a few years before going back for an MBA (and maybe even work will pay for some of it). I think when you’re young and excited about the bright shiny thing called a good education, you don’t see the whole big picture. But so many people are facing that sobering reality once school is over. It does make me sad so many compromises would have to be made, but student loan debt is NOT glamorous like you said.
Yeah, our generation grew up thinking you could be anything and do anything. I still want to believe that, but sometimes it doesn’t work out the way you thought, or at all. The student loan issue is only getting worse and students need to be prepared for what they are facing. Hopefully the economy is getting better too though!
I can’t remember if I’ve shared this here before but I wrote the opposite of your post a year ago: http://www.lesliebeslie.com/2012/11/26/dear-student-loans-thank-you-a-letter-to-my-student-loans/
I don’t consider all student loans to be good debt (clearly you could have gone to a cheaper school and a degree in theater isn’t always a wise investment) but you made the choices you did and there’s no sense regretting them now. You did what you wanted to do. If you hadn’t moved to nyc, you’d probably spend your years elsewhere just wishing you were in nyc and regretting going to whatever school you did. You’d say “Sure, I saved $40K and I know that’s a lot of money but it’d be worth it to live in ny”.
I like the comments about tuition reform and that student loans shouldn’t be expected. It’s funny to me because growing up, I thought EVERYONE took out student loans. I didn’t know people actually paid tuition in full. I didn’t even think it was possible.
Interesting perspective! In some ways you are absolutely right. I really wanted NYC. I still miss it, in fact. It was a great opportunity at the time and I made the best decision I could given the information I had. I do still think student loans are bad. I’m a radical idealist when it comes to education. I think it’s a human right and should be free for everyone; artists, teachers, lawyers and doctors alike. It would level the playing field so much! I actually thought most people took out student loans too, until I went to a private school 🙂
I thought about doing graduate work but the loan amount scared me off. I finished my undergrad with $21K in debt and that was enough for me. I am thinking about possibly doing a Masters in the future but when I can pay for it without debt (maybe when our future kids are in middle/high school).
In the end, I do think my education was worth it as I know I would have the job I have now (or most of my jobs) without it. Even though it was in something completely different than the field I work in, the fact that I have a degree means something to the workforce here in Canada.
Sometimes your degree does help you get a job in unexpected ways. My M.A. made me more attractive for the job I have now– not because the degree per se, but in the ways I was able to talk about myself, what I’ve done and what I want. My perspective changed a bit after grad school. I think it’s smart to not go back until you can afford! My undergrad was “only” 23k and that seems like small beans now!
I do still think higher education is worth it, but I agree that had I done it over again, I would have thought about going into debt over getting a degree. I agree about traveling, it did wonders in changing and shaping my perspective on life!
I think education is worth it too– I think the system is just flawed. Even “cheap” schools now leave students with 30k or so? Crazy! Traveling is the best kind of education! It’s totally changed my life (for the better)
The system is backwards and predatory. I honestly don’t think any debt is good debt, especially student loans…but that’s what the lenders want you to think 🙂 My degree definitely wasn’t worth what I paid for it either. For the past few years, whenever I hear about someone going to college, my thoughts initially go to how they’re paying for it. I love to educate people about student loans and use myself as an example. Hopefully people can learn from my mistakes!
I agree completely. I am so glad you are my partner in crime in trying to educate people about student loans 🙂 The problem is only going to get worse, until the bubble bursts.
I just came across your blog after re-visiting some other PF blogs for the first time in a long time. I can so relate – I have $85K in student loans and a BA and MA to show for it. My degrees were in social sciences/liberal arts and I would DEFINITELY have done things different if I could go back in time. I’m not an extravagant spender and, like you, I dream of travel, so when I think of how far $85K could go…ughh. Instead, I try to stay positive that I have a stable job with good benefits, even though my debt to income ratio is huge.
I’m glad to be educating myself about personal finance now. However, I am pursuing a loan forgiveness program that incentives making low income-based monthly payments for 10 years (while working in the public or nonprofit sector) in order to have the rest forgiven and it’s an awkward position to be in as I read about others aggressively tackling their huge debts!
*Sorry, that should read incentivizes!