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College Debt: A State of "Indentured Servitude"

Posted: 02/22/10 12:36 AM ET

I hold a BS (International Relations, 2001) from the University of Wisconsin as well as a Master's (Public Administration, 2005) from Columbia University. My parents paid for most of my undergraduate costs, but I still managed to take out close to $80,000 in student loans for my undergraduate and graduate education. During that time, I think it's important to note that I also held side jobs around 20-30 hours a week for personal spending and "beer money."

Starting in college I signed up for three credit cards to finance travel and other living costs during a couple of full-time, unpaid summer internships around the country -- all to get that requisite "experience" that supposedly helps the chances of a job out of college. My first job ended up being an environmental technician in Los Angeles; work that primarily involved dragging heavy equipment through asbestos and lead-laden crawlspaces. My salary barely broke $35,000; not enough to live and pay down my college debt effectively. Thus, after two years, I returned to graduate school at Columbia -- an opportunity that I felt could not be missed.

Even after my one-year graduate program, I incurred $75,000 in new student loan debt. I consolidated my loans, and believed that some soon-to-be-had job would allow for a relatively modest payoff time. Initially, I had to take low-paying contracting positions just to get by. I had no health insurance. Even with the help of school career centers and networking events, it took nearly two years to find a 'real' job; a startup consulting firm with a bad habit of casually missing pay days.

Needless to say the consulting job didn't work out. I eventually moved to San Francisco where I currently work in a more stable position with the state. Two years in, I am still frustrated by lack of mobility and career development options. My income allows for minimum payments on my loans and credit cards every month, but since graduating, almost 10% has been added to the original principal of my graduate student loans. My total debt stands at $91,897 -- still way more than I make in a year. This, coupled with the recession and San Francisco's high cost-of-living, leave me feeling I am living some form of what one recent article described as "indentured servitude" -- all for following a respectable career pursuit and excellent academic opportunities despite relatively little honest financial payoff.

What have I learned during this process? I still can't say I know what I want to do. The old conventional wisdom -- work hard and stay in school -- no longer applies. It belongs to a different, dying economic age that spanned the last half of the 20th century. Those pursuing a substantial level of higher education should take time and dig deep to find what really drives your work ethic and makes your intellect tick. Push back hard on those who tell you that you must choose a major now, or even that you need to go to college in the first place. Why not become a trade apprentice, take a broad swath of Gen Ed classes, or perhaps leave on a gap year?! I think there should be a new conventional wisdom -- work smart; discover, and then pursue your passion -- a statement more in line with the marathon that life is and one that will hopefully save people a lot of money.

 
 
 
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HUFFPOST SUPER USER
padrushka
question authority
04:13 AM on 04/09/2010
we were naive and believed in all the bs ! went back as older students..we have paid a huge price..no one hires olders,we thought that was a myth! it is not. we have debt till we drop. we can only support ourselves out of country.
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HUFFPOST SUPER USER
qaan
Cake or Death!
08:48 AM on 03/25/2010
One strategy is to try to get a lowel-level job in a company that will reimburse you for tuition as long as the coursework can somehow be shown to relate to your current or future job within the company.

Most Americans are financial slaves for one reason or another.
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02:15 PM on 02/23/2010
Don't take the money, go part time, go to community college the first year or two. If debt bothers you do not take it on. I am not saying what you should do but there are alternatives.
11:15 AM on 02/24/2010
I went to community college for the first two years, and sold my house to pay my local public university for the next two. Then the public university raised tuition by double digits every semester I was there, leaving me $20,000 in student loan debt. The jobs available at that time for recent grads paid less than I was making before returning to college. It's true - there are alternatives. But the problems go deeper these days than the solutions that used to work for most people.
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12:35 PM on 02/24/2010
Agree, my comments were primarily focused on a younger persons situation.... I coach HS, see how different families approach this and I have a daughter in college (this coming fall). Some families do not think about debt very seriously in their decision making, want the "college experience" for the kids. It is their call. In VA the community college cost $110/Credit Hour, local 4 year school will cost you about $300/CH, more expensive state school will be $500/CH and private/out of state school is going to be $1,000/CH. I see many who should not even be thinking about spending $1,000/CH on freshmen english when they barley got out of high school/"do not know what they want to do". Just does not make sense... and I would say this fits about half the kids I see incurring debt for themselves or their families. Their call, just they should not complain about their decision making and blame the system. A lot of the decision making I see is influence by ego and price about the institutional affiliation.
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12:55 PM on 02/24/2010
... the last sentence should have been >> pride about institutional affiliation.

And again, this does not directly address your situation at all but I think does address the majority of the victims posting about college costs.
HUFFPOST SUPER USER
middleoftheroad
01:55 PM on 02/23/2010
Why didn't you go to a school that you could afford? There are like 8 or 9 blogs on the "college" area where people are bitching about loan payments...it was not a bait and switch, you knew how much money it would be...wh are you directing this to? the govt? the college system? what? It seems like the takaway is that you went to college not knowing what you wanted.
10:04 AM on 02/23/2010
The weird thing is you didn't apply to schools that would have paid you to go to graduate school. I got my Ph.D. for free from Indiana University by working as TA type job, so when I finished I had around $6,000 saved up. I didn't have a car or cell phone, but I don't have any loans either.

There is very little reason to attend private school unless they are paying you a full scholarship (or very close), or you have rich parents. otherwise it simply isn't worth the investment.
10:32 AM on 02/23/2010
Good job fellow Hoosier. I found two employers here in central Indiana who paid for a lot of my undergrad and advanced degree, respectively. I ate a lot of toasted cheese and drank crappy beer when I could afford it, but also graduated with no loans.
01:35 PM on 02/23/2010
In retrospect, I would definitely have chosen to go back to my alma mater for grad school (Wisconsin). I think at the time, I admittedly was a bit dazed and inspired with the prospect of being accepted to an Ivy League graduate program in my field. I was 24, and it seemed like one of those big opportunities you would've felt like you 'missed' if you hadn't done it. But yes, in retrospect, public schools are much better, and I will always be extremely happy about my time at Wisconsin.
02:54 AM on 02/23/2010
Beer money haha. It really cuts into the budget I know what you mean.
10:29 PM on 02/22/2010
Holy crap do I agree with this guys advice. I took my tiiimmmee thinking and digging deeply about what I wanted to do after I dropped out of a college in NC for finance. Now I am getting close to finishing my BSME at a college in Florida and I love it!! Knowing what you want to do - reeeallly knowing is essential I think to being happy with your degree and following your dreams. It may take time to do but its the right approach I'd say. As for the loans, that really sucks obviously but I would say that the income part of the equation is the one to focus on. The debt - if you continue to make min. monthly payments may be able to be kicked down the road a bit further. I've heard of some things they're thinking about doing in congress related to capping loan payments at 10 yrs and such. So when the economy turns around and theres a little more guidance I think the picture might look different. But from the article I read the guy in question will likely do just fine in due time.
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HUFFPOST SUPER USER
cloudminder
06:52 PM on 02/22/2010
part of this is about what is happening in higher ed in CA in general
and the ridiculous cost of living in CA, anywhere here!

if you want to know what is going on at UC :

http://cloudminder.blogspot.com/
05:28 PM on 02/22/2010
"startup consulting firm with a bad habit of casually missing pay days. "

Sounds familiar
03:41 PM on 02/22/2010
You should be furious at Obama and the Libs for ruining the economy, especially in California.
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StopThePlanet
Outlaw stupidity and only outlaws will be stupid
05:36 PM on 02/22/2010
Ahnold is a huge part of the problem in CA. But you only see what you want to see.
02:06 AM on 02/28/2010
CA taxpayers are responsible for much of their problems. They want the State to do a great deal for them but they don't want to foot the bill for the services they demand.

Eventually you go broke with that approach.
02:23 PM on 02/22/2010
of course it's wage slavery. textbook case. why is it that we can pay for k-12 with no issues but somehow college is a catastrophic problem? free education period for anyone and everyone anytime.
04:15 PM on 02/22/2010
Because we shouldn't have to pay to educate adults. Free college...ridiculous.
05:27 AM on 02/23/2010
That just begs the question.
11:18 AM on 02/24/2010
Hear, hear! Let's invest in our country's future by ensuring that everyone is as educated as their intellects will allow.
HUFFPOST SUPER USER
Robin J
02:15 PM on 02/22/2010
I think that this is why high school counselors should do a better job discussing these issues. College is not the right place for everyone. Getting a degree in a field that only pays on average $40K/yr, but costs $150K (i.e. MFA) is stupid, unless you are independently wealthy. Also this "follow you passion" crap...I had NO IDEA my current job even existed when I was 18. I LOVE my job, make good money, and will be debt free in 18 more months. But I had no idea what my passion was then, or frankly now. Do I only get one? Like a soul mate- if you do not find THE ONE, you are destined to be a lonely pathetic loser? Please! You can be passionate about something that pays the bills, or does not cost a ton of money to get qualified for. My cousin loves to farm--he went to a tech school, became a certified John Deere Mechanic in 2 yrs, debt free for less than $10K (living expenses included!). He now makes $60K as a PART TIME mechanic, subsiding his passion for farming (that makes no money). I wish that we showed our kids the consequences of these early life choices more honestly, and that we helped them find creative ways to follow their passionS (and make sure they know that there is more than one correct choice for them, and everyone else, to follow in life).
10:40 PM on 02/22/2010
I disagree with your opinion but I do agree that there are people that think like you and do very well in life
12:21 PM on 02/23/2010
I think Robin makes a really good point: college *isn't* for everyone.

The idea that you need a college degree to make money even in this economy is silly. There is and always will be a need for qualified mechanics, welders, electricians, and other trade jobs in the US. These are all careers in which you can make at least $60k a year and that is before benefits.
01:28 PM on 02/22/2010
I am new to the Huffington Post but realized over the past couple of days that graduated students post their problems with their supposed "education" and the tremendous debt they assume upon graduation in great numbers.
You have been sold a bill of goods by a higher educational system whose sole purpose is to survive and pay salaries to unproductive out-of-touch professors who care little if you obtain employment and have a productive and fulfilling life. You are all victims of a sales pitch that sells the value of the college degree.
What is most important is that you all realize that you have done nothing wrong. You are in the same boat with hundreds of thousands of other graduates.
The one thing that you, as graduates, can do is work to change the system. And the first thing you should work to change are the bankruptcy laws in our country. Many of you will have your government sponsored loans for 7 years before you can declare bankruptcy. Many of you will have your student loans for life. Our politicians have sold out to the special interests of the student lending industry so these loans are not dischargeable by bankruptcy.
I urge you to use these posts to garner support to change these laws that discriminate against graduates in debt-in favor of financial corporations. You must talk this up. You must write your congressional representatives. You must be constant-never stop.
12:13 AM on 02/23/2010
After having earned and paid for three degrees (AA, BA, MA) at various universities, I have been left with a deep sense of disappointment. I too was sold a bill of goods, so to speak. In reality, it is true that universities are just money-making entities with many professors who are out of touch. I am particularly unhappy with my graduate degree experience. I know that I was offered a position as a grad student to further my professors' careers first and foremost. One needed to supervise a certain number of grad students and I fit the bill (hard-working, delivering on time, excellent grades). The other needed a grad student to better secure her chances to become an assistant professor. After graduation, I was dropped like a hot potato when I let it be known that I did not want to climb the academic ladder any further. There was no guidance to help me look for work in my field outside of academia even though I asked. (Oh, and the disconnect between academia and the job-market is huge!!). The only advise I got was to start a PhD, because I would be good at it. Um, yes, right! I was nearly 50,000 dollars in debt and in order to compete in the academic world, I would have to get a Post-doc after my PhD too.
01:11 PM on 02/22/2010
Colleges can be a scam, if you don't manage your expenses properly. However, without a college degree, you may max out at $10-$12 per hour. After a college degree in the right field, your income should move to $28-$55 per hour. $20000 of student loan debt can be paid off in less than a year, if you skimp. (Move in with your parents for a while, drive an old car or take the bus, don't eat meals out too often).

I recommend people work part time while in school (in something close to your chosen field, if possible). Make connections. Shop for good values on colleges. Attend a community college for a year or 2, if necessary. I paid for my college degree (engineering) entirely out of my own pocket. I kept the debt low, and it was easy to pay off when done. It was a great investment.
05:31 PM on 02/22/2010
that's bupkis... i have no college degree and make approx 40/hour full time in a tech firm as a product manager. I worked my way up from the bottom (in sales) and am where I am today... all without a degree. ANYONE can do it. Being limited at 10-12 per hour is just ridiculous. Even college degrees do not guarantee you anything over 10 bux an hour. They still have to start at the bottom. It's nice to have the degree (I wish i got mine), but it is *NOT* necessary unless you want to go right into a professional occupation such as being a doctor, lawyer, engineer or something of the like.
11:58 AM on 02/22/2010
I work at a college and I tell students all the time that they can take time off and return if they aren't sure what they want to do, that they should put off grad school unless they're positive it's worth the investment, and that they need to plan early how they'll pay their bills once they're out of school. Guess how many listen?