Categories
Make Money From Home

‘Why am I pouring money into an endless pit?’ 4 families on what student loan forgiveness means for them – Fast Company

Over the span of 12 years, Shajuan Taylor attended four different universities before receiving her bachelor’s degree in criminal justice and psychology in 2017.

A spate of health problems kept interrupting Taylor’s educat…….

Over the span of 12 years, Shajuan Taylor attended four different universities before receiving her bachelor’s degree in criminal justice and psychology in 2017.

A spate of health problems kept interrupting Taylor’s education: Her daughter had spinal cord surgery that resulted in temporary paralysis; her son had multiple heart surgeries; Taylor herself had six brain aneurysms, then colorectal cancer. She had to prioritize working to take care of her family.

“I didn’t have enough money to raise four kids, maintain a household, and still be able to live,” she said.

Yet she pressed on to pursue her degree—and racked up about $115,000 in student loan debt.

For many ordinary American parents, the accrual of student loan debt has become a barrier to financial prosperity for their households. They struggle to prioritize the payments when faced with everyday expenses like food, housing, and childcare, or to plan ahead for long-term aspirations like owning a home.

And life gets in the way: People experience unexpected health issues, and a volatile employment market can restrict the ability to wipe balances clean. But the debt always lingers, and the interest builds—sometimes ballooning to far more than the original loan.

Americans owe about $1.62 trillion in federal student loans. On August 24, President Joe Biden announced that the government would cancel federal loan debt up to $10,000—or up to $20,000 for the approximately 60% of borrowers who had Pell Grants, usually individuals from lower-income households. The plan would cover about 43 million borrowers.

Some parents say Biden’s cancellation plan will help; others contend that it won’t even make a dent in their debt. Still, most maintain hope for deeper change to make education less expensive, for the sake of their own children’s chances of success.

Many parents say they chose to invest in higher education for themselves not realizing it would end up being such an ongoing strain. Doug Weissman, a 36-year-old travel writer, pursued a master of fine arts in creative writing, “under the impression that it would help my career growth,” he says. “And it didn’t.”

He started the University of San Francisco program when he was 25. “How much [did] I really know about financial stability at that time,” muses Weissman, whose debt currently stands at about $35,000.

His wife, Lisa, whose debt is much higher from her undergraduate and graduate studies, also believed her degrees would help her land higher-paying jobs. “That’s what we were promised, right?” he says.

Instead, the pair have massive student loan debt, which they must balance with expensive living costs in Los Angeles, where they want to stay for proximity to extended family and for Lisa’s job at the …….

Source: https://www.fastcompany.com/90783062/why-am-i-pouring-money-into-an-endless-pit-4-families-on-what-student-loan-forgiveness-means-for-them

Leave a Reply

Your email address will not be published. Required fields are marked *