Loan Debt is a Bumpy Ride; Get Your Shocks or Get Shocked

Hello everyone,

So I just read this wonderful article from AFT Voices on one educator’s epic struggle to find student loan relief. And look, I’m in this boat too, many medical professionals are in this boat, and student loans are just freaking ridiculous. As much as I absolutely ache for my friends in the medical field, especially during these times, this article isn’t quite for you. Let me explain why.

I’ve seen many, many articles about student loan debt woes, and student loan forgiveness (and that absolute mess in Washington DC), but I think we’re missing something. What about the plan? Yes, the plan. We have come to consider the traditional post-secondary education (and the disciplines that go beyond this) to be the sacred cow. And that is fine, really. I don’t have anything against those who pursue a traditional academic education. However, if that’s what you’re going to do, you need a plan. Why, because $1.7 trillion is a number you don’t want to be included in. Because chances are, whatever job you get coming right off of your academic studies is not going to get you out of debt quickly (but that is its own discussion). It’s like this system wants you to start out in the red. And unfortunately, I again have to pull the race card on debt borrowing (or is it the socioeconomic card? At this point, it feels like having hash browns versus home fries). But when nearly half of black graduates owe more four years later while 83% of their white counterparts owe less, not only is there an issue in debt, there’s an issue of the quality of debt (this is yet another discussion).

But let’s go back to the point of this article: the plan. What is the plan? We could very easily just say white people have greater opportunity which allows them to plan easier. That’s not a point I will argue with. Systemic oppression, racism, chattel enslavement, and Jim Crow all still loom heavily in American culture. And to be clear, most other countries have other provisions in place to get an education; the United States seems (keyword, seems) to be the only country which treats education like a commercial entity. Therein lies the key though. If the conferral of an academic degree is treated like a business, then so must the pursuit. And because people of color, particularly African-Americans, tend to grow up with less opportunity, it behooves them all the more to have a plan. Let me explain.

Imagine accumulating $30–40K in debt in college just to get a job that pays $35–45K a year, and then have to live. Well, when many experts believe you have to have a debt to income ratio that’s about a bit over a third (note this article doesn’t even account for student loan debt) of your total income, and your student loans alone are 70–80% of your income. Well, then what? Then…you either have to: (1) suck it up and get on the struggle bus (have you seen some of these monthly payments?!), (2) kick the can down the road with deferment and forbearance hax, or (3) you simply never pay. And all these options have consequences, short-term and long-term. What do you do then? What do you if you’re in one of these groups that has more debt? What if your parents had/have so much more debt they can’t help? What if they could never help? The opportunity card strikes again, right? We could talk about issues with opportunity until we are blue in the face (I’d rather not because I want to take care of “home”), but what are we going to do about it? Let’s talk about it.

How to Overcome the “Opportunity Gap” (The Starter Pack)

1. If you are the parent of a child headed to college in the next 4 years, make an honest assessment of finances, and then talk to your child. I was (in my mind) blindsided my junior year of high school with there being no college fund. By then, most of my grades had been determined. I was kind of a slacker in high school, and while I know parents would prefer not to pressure their kids unnecessarily, I would say it’s better to pressure them with that than the outcome I had. My parents worked hard to help me through college, and made significant contributions, but I left college with $28K in loan debt in 2006, which was probably beyond the median debt. Don’t be like me, and don’t produce a “me”.
2. If you are the child headed to college, and your parents won’t have this conversation with you, push it. You’re the one going to school. You’re a kid still, but you’re closer to 18 than you are to 8. Time for some personal responsibility. If you can’t have the conversation with your parents, then you have to presume there’s absolutely no aid coming to you, which is where my #3 and #4 come in. Let’s continue.
3. All students need a financial plan as detailed as the career one. What I’ve noticed in many high schools is that even in most of the “upper tier” schools, the college counselors don’t talk about this part. I’ve been out of high school 20 years, and my high school still ranks in the top 75 nationwide. Still, I didn’t get this convo. Nobody told me the weight of going out of state to school, nobody told me the weight of having loan debt in a field that may not pay dividends for years after my graduation. Still, this is where knowing how your target field works in the real world comes into play. Rest assured; I would never tell anyone to go to school, or choose a career based on where there’s the least financial hardship, but what I am saying is: school costs money, and career costs money. You have to go where the you can avoid paying so many costs, you never get to be a boss. At the end of the day, autonomy matters.
4. Purpose rules the day, but be purposeful in choosing. We’ve already talked about the opportunity gap right? Right. But if you want a career, you need to also know the likelihood of you landing a job. Lawyers, I hate to pick at you, but I’m going to use you for an example. Unlike doctors, where the medical subdiscipline can impact finances, but normally only impacts other aspects of your career, being a lawyer is different. There are a lot of lawyers, and one has to be tactical in choosing a career. Career burnout is more likely in careers that are saturated (one of many factors), but because there are many lawyers, one could say that simply having a law license isn’t enough, and you either have to choose a specialty, or understand the challenges that come with general law. Other fields can be like this, such as education, where rookie teachers are at the bottom of the education totem pole, and can burn out very quickly. These fields can be fulfilling, but chances are they won’t be if the challenges that come with them blindside you.
5. Eat a big bowl of “Don’t Take It Personal” (part of a balanced spiritual breakfast). At the end of the day, no one is coming to help you. Or at least you shouldn’t assume you’re entitled to it. I wouldn’t be where I am without the mentors who saw my potential, pulled me to the side, and taught me the things that my parents did not. And as mentioned before, I would also not be where I am without all my parents’ hard work. Still, it’s outright dangerous to assume someone is going to come to help you. But don’t take that personally. You have to bet on you, otherwise, no one else will (the system certainly isn’t). At the end of the day, you need to know you got it. You need to know you can overcome. You need to know you can persevere. Most of all, you need to know you can plan.

This was a bit different, but this one has been on my heart for a while. Let me know what you thought of this article in the comments section. Thank you for reading, and have a great day!

[DISCLAIMER: I would not call this article “financial advice”, nor am I in any way directly involved in any financial industry.]