student loan debt
People stand in a cage surrounded by signs with slogans that protest student debts. Image credit Reuters.
During my time in college and graduate school, I accumulated something like $50,000 in debt. So, you’d imagine I would be particularly excited about the prospect of Biden forgiving some of my debt. But I already paid off my student loans! Does that mean I rue others getting theirs forgiven? No! I am happy that other people may receive debt forgiveness even if it doesn’t apply to me.
Students walk on campus at the University of Michigan in Ann Arbor, Michigan, FILE PHOTO: Sept. 20, 2018. REUTERS/Rebecca Cook
Higher education student loan debt has become a hot topic in the current political debate, with several presidential candidates calling for either full or partial student loan forgiveness. And as student loan debt levels reach historic highs, it is clear this is a problem worth solving. One only needs to look back to the Great Recession to see how widespread out-of-control debt can shock the entire U.S. economy. The student loan debt crisis does not exist within a vacuum, however, and can be compounded by several issues that also need addressing.
Sergey Nivens / Shutterstock.com
Editor's Note: This is the final piece in a three-part series on Financing Seminary Education. Read Part 1 here and Part 2 here.
“The higher education industry is facing a multi-pronged and existential threat composed of successive waves of disruptive innovation” (Butler, “Tottering Ivory Towers,” American Interest (Sept/Oct). It seems higher education, including seminary education, is going the way of the music and media industries! Our 2,000-year-old business model of “sage on stage” could be truly doomed. The appearance of “massive open online courses” (MOOCs) over the past few years has thrown many higher education institutions for a loop, and more innovations are on the way.
In response to these new innovations higher-ed institutions, including seminaries, have tweaked their business models with a few technological modifications such as PowerPoint, email, electronic research, and online courses. But, will it be enough? Butler says “no” and so do the trends. The reality is graduates of today’s higher-ed institutions are not evidencing the competencies expected and/or hoped for by their future employers. Consequently, accreditation standards, at an all-time high in complexity, are now beginning to be challenged. Simultaneously, tuitions are costly, the economy is tough, and the job market is even tougher. The end result is that students are graduating with large amounts of student loan debt and potential students are opting out of the education market.
We began the 21st century with denominations and churches that no longer fit the needs of a shifting society, a Congress that votes against the poor and the middle class, and seminaries that face multi-pronged threats to their existence. It’s time for an overhaul!
Seminary at Mount Saint Mary's University in Emmitsburg, Md., Jon Bilous / Shutterstock.com
The contemporary fast-paced, capitalistic, U.S. free market society has lost the traditional commitments to and comprehension of ‘church.’ Our parents and grandparents understood church as a community to which they belonged. Church was a place where many aspects of social life happened. The pastor was hired by the church people to care for and nurture the community, both individually and collectively. People looked to the pastor for spiritual inspiration, ethical guidance, sound counsel, and pastoral care. The pastor was an extended member of the family and people were happy to make a personal financial contribution to pay the pastor's salary and to keep the church building in repair. Somewhere along the line our society ‘outgrew’ this version of church.
A recent article in The Atlantic titled "Higher Calling, Lower Wages: The Vanishing of the Middle-Class Clergy" laments the shift away from the traditional model of financing church and clergy as well as the increased costs for training clergy. The average Master of Divinity student (the degree for pastoral training) graduates with tens of thousands of dollars in student loans — sometimes entering into the six-digit category. According to the U.S. department of labor, the median wage for a pastor is $43,800 — not a salary that lends itself to paying off high-end loans.
A young man carries an old suitcase. Image courtesy nito/shutterstock.com.
Irresponsible. Foolish. Impulsive. Recent college graduates with substantial student loans are sometimes regarded in these terms. Those who attended college decades ago, with a $15 per credit hour, may assume that these graduates are spoiled Millennials who “should have known better” than to agree to the loan terms.
The month of July stands as an important time for Congress as members of the House and Senate attempt to make decisions about six major U.S. issues. Some vital decisions that need to be agreed upon before next month’s recess involve: immigration reform, student loan debates, budget planning, and fiscal issues. The Washington Post reports:
Significant debates await the House and Senate in the coming weeks over a new budget, a new farm bill, federally-subsidized student loans, several key Obama administration nominees and an overhaul of the nation’s immigration laws, which remains the year’s biggest political fight.
Read more here.
Student loan debt illustration, Marie C Fields / Shutterstock.com
There have been lots of news stories lately about student loan forgiveness and the like, and as the holder of serious five-figure graduate student loans, you’d think I’d follow the discussion closely.
But to be honest, I haven’t paid much attention for one, possibly cynical, reason; the systems isn’t going to change.
I joke sometimes that my dream is to pay off my student loans before I retire, but to be honest, that probably won’t happen. It wouldn’t surprise me if I have them with me the rest of my life.
I know, typical twenty-first-century young adult nihilism, right? Maybe. But my monthly payments are already the second largest bill we have next to our mortgage. Still, the payback time line spans many, many decades. I’d like to believe that those in power have the necessary motivation to change things, but here’s why I hold little, if any, hope they ever will.