Forgive Us Our Debts | Sojourners

Forgive Us Our Debts

The high cost of U.S. education loans is causing a new form of indentured servitude.

SARA WAS DESPERATE. She was fleeing an abusive husband, living with her mother in a mold-infested house, and she needed to rent an apartment. A recent college graduate, Sara had a job at a hospital that paid well and provided benefits. Apartment rent was within her means. But the background check came back to the landlord: “Do not rent.”

Sara (not her real name) was $22,000 in arrears on her student loans. The more she tried to pay the debt, the higher the interest rate climbed. Only after she filed for bankruptcy did she learn that none of her student loans were eligible for even the basic bankruptcy protection afforded other debts. At any time, the lender could garnish her wages—even to the point of making it difficult to pay basic living expenses, such as rent and utilities.

Sara is one of the new 21st century debtors, in financial bondage because they borrowed money for education. In 2014, the education debt in the United States totaled $1.2 trillion. More than 7 million borrowers are in default.

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