Double the Debt: Students' New Financial Problem

Jul. 2, 2013  |  Comments
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Carina Lewis

Date: 7/1/2013

To the Editor:

What was once a lofty ivory tower now resembles a financial prison clouded by an uncertain job market and higher student loan debt.

With Congress doing nothing to prevent the current student loan interest rate from doubling from 3.4% to 6.8%, high school graduates will have to make some serious decisions when considering whether higher education is a financially smart move.

The proverbial road from rags-to-riches is riddled with potholes obscuring students? hopes of achieving the American dream through higher education. There was a time when credit cards and check cashing schemes were the biggest financial pitfalls a teenager had to avoid and a time when higher education meant financial freedom, the possibility of a family, a nice home, and a comfortable lifestyle. Those times are a thing of the past.

If the new interest rate hike takes effect, students will graduate with more outstanding loan debt shadowing their futures and bank accounts. Ultimately, more loan debt means students will not be able to buy homes or cars, invest in small businesses, and participate in other activities as simple as vacationing all of which drive the American economy. How can new graduates afford to invest in the American economy and support existing businesses when there is a $24,301 (the current average student loan debt for Americans) bill marked due in the mail on graduation day?.

And with higher interest rates, graduate school will become an elusive and altogether unattainable feat for some students. With a bachelor?s degree, a masters, and one semester of law school left, my grand total is $95,000 and rising. On a standard repayment plan, my loan payment will be just over $1,000. However, my first (and only) job offer has been a disappointing $39,000. Ironically, my decision to pursue graduate education was driven by the lagging job market and a desire to make myself more marketable to future employers.

As I am paying off my $100,000+ in student loan debt in monthly $1,000 installments, I will be wondering, when did we start selling the American dream on a layaway plan?. Nevertheless, when I am discouraged and a bit cynical, I am reminded that I am in good company with the 37 million other Americans struggling to pay off outstanding loan debt waiting to cash in their degrees to pay off our continually growing student loan debt bill.

Carina Lewis
Jackson, MS
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