Thanks to a journalist friend from the Indy Star, yesterday I read a New York Times Op-Ed piece entitled “Why I Defaulted on my Student Loans.” The author of the essay shares his personal story of borrowing to finance his college education 40 years ago. In many ways, it’s a story our family knows too well. After all, over $80K of our $127K in debt was in the form of student loans.
Like Lee Seigel, my husband and I both worked at a mall when we were in college. My husband’s hard working parents did not have college degrees and couldn’t afford to finance his education. After graduation, when he chose to go to a state law school, as young newlyweds we were encouraged to borrow the full amount even though it wasn’t necessary to pay the bills. After all, student loans were “good debt” and his starting salary would more than able to be able to pay for what we borrow within just a few years.
Except it didn’t. He couldn’t find a job that paid half of what we were told he’d be making upon graduation.
So we did what many people do (and I’m guessing what this author did, too in the beginning). We deferred the loans.
The funny thing is, just because you ignore a problem it doesn’t go away. And when your problem is debt, it literally compounds, making it a bigger problem than it was to begin with.
This is precisely where we were in the spring of 2008, when we began the long and winding journey of slaying our debt dragon. Turns out, one job wasn’t enough to pay off all of our debt. That’s precisely why my husband took on two more and I became a money saving fanatic, learning every tip and trick I could – from making laundry detergent to couponing to saving on utility bills and more – so we could pay what we signed on the dotted line for and received.
We borrowed it. We owed it. We planned on repaying it. Even if it took the fifteen years we calculated it probably would. The end.
After four long years, we stood on the other side of our debt – that $80K of student loan debt, coupled with car loans, medical debt, a gap laon, furniture purchased on a payment plan and more unwise borrowing decisions – all $127,482.30. I’ll never regret paying it back. And I think if at all possible, others should pursue the same path. Here’s why.
The process is the remedy. The process of paying off debt taught us to never to return to the well of borrowing again. Like a child touching a stove that’s hot, we learned that borrowing beyond our means hurts. The change required to repay debt is painful.
Call me a wimp, but I’d prefer a life that doesn’t require unnecessary pain.
Certainly, if we had defaulted or chosen not to pay off our debt, we might have avoided some pain, anxiety, and suffering in the short term but in the back of my mind, I would have always questioned that choice. Honestly, without the sacrifice of daily choosing to pay off debt we would have quickly been back in the same position with more borrowing, anyway. Trust me, borrowing (and not repaying) always leads to more borrowing and in the end more pain. Instead, we chose to work more, spend less, do less, and be satisfied with what we had. It wasn’t always easy and it wasn’t always pretty, but it was worthwhile.
Our lives are comprised of choices. We’re not puppets pulled by a system. We have free will. Ignorance of the student loan system doesn’t free us from repaying our obligation any more than ignorance of the legal code mean that it would be OK for us to steal money from a bank.
My heart will always be for those who have borrowed and feel stretched beyond their means. That very hopelessness haunted my soul for years. The darkness of feeling the sum of your unwise decisions bare down on your pocketbook, relationships, and daily life is unbearable. Higher education is expensive and thankfully in the 20 years since we attended college and the 40 years since Lee Siegel attended college, there have been stops placed in the system to help better guide students to make wiser choices when borrowing. I know the deep seated desire to walk away from it all, pretending I’d never borrowed a dime, wishing it into another place and time.
The path of least resistance is in many ways easier but also complicates life. Even Siegel admits he’s still being pursued by the Department of Education to repay what he owes. A choice to default doesn’t equal easy street.
In the end, Mr. Siegel calls upon students to follow his example. It almost sounds like a power to the people cry for hope to change the system. But before you burn your statements and run into the streets, realize that Siegel is 57 years old. He has Bachelor’s and Master’s degrees from Columbia University. He’s written for the The New Yorker, The Wall Street Journal, The New York Times, Harpers, The Nation, and penned five books (including a forthcoming memoir about money). I point this out not to deride his character but because upon a quick read of the article it didn’t fully dawn on me he was nearly two decades my senior and a much more accomplished writer. He’s not a millennial with limited job opportunities. He’s not a midwestern kid who is overwhelmed by a complicated system. He’s making a choice and according to Wikipedia is apparently proud of it.
We made the choice not to default on our student loans and I’m proud of that.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
This post contains an affiliate link. That means when you get a great deal or maybe even something for free, you also help our family pay off our mortgage early. And for that, we royally thank you!
An inspiring article. I have student loan debt. I did find myself going to a school that turned out not to be as reputable as I thought. It turns out it’s a scam but that is a whole another story. I have debated to default on my loans or do my best to pay on them. Defaulting is not an option and I am doing my best to work with the system to pay on my loans. There is a movement brewing to change the system you are right. But not everyone can afford to not payback their loans. You have inspired me to work harder on our debt and keep moving forward. At the moment its the best plan.
I love this so much! Love. I read that op-ed piece and honestly I thought it was garbage. And it made me angry because my husband and I fought like dogs to pay off his student loans.
Cherie, Thank you for being the kind of person who does’t walk away from responsibility…and just as important, teaching others to do the right thing! I know it is really hard and I love how you describe the learning and positive outcomes of dealing with paying off the debt. The future of our country can only be saved by people like you. Yes, it might sound gushy but it is true. Take it from someone way older than you! Thank you.
I TOTALLY agree! My husband and I have had our own 6 figure student loan payoff and realize that the journey of paying off debt is what changed us. We are so, so grateful for that journey – as horrible and hard as it was!
Also, I was just listening to the Death, Sex and Money podcast – the most recent one they did on student loans and found the sentiment very similar. Basically saying the students were duped and there’s no way out. There is a way out – it’s working 3 jobs and not spending money on eating out, vacations, etc. It’s a sacrifice. But, one thing we finally learned is that we can’t have everything!
Thanks for your article. It was articulate and inspiring!