A Story of Student Loan Debt

I was paying bills today and it struck me how much easier things are since my wife and I paid off all of our student loans 2 years ago. 

I’m simultaneously happy with a system that allows a broke kid like me to go to a decent college, and shocked by the crushing burden of debt that it can create. 

The story of my own college debt is convoluted, uninformed, and fraught with my own mistakes and missteps. I grew up in Ohio always thinking I’d be going to OSU. I ended up doing in better on my SAT than anybody expected (myself included), and the University of Dayton offered me a big scholarship. Nevermind that OSU would still have been significantly cheaper. I decided to chase the dollars. It felt great to be offered so much money, though I didn't quite grasp the idea that it was more of a discount than a cash offer. It went fine; I sometimes felt unprepared, but I did OK overall and finished the year with a decent GPA.

I had a girlfriend when I started college. The long distance was too much for the young relationship and we broke up. I was heartbroken, and definitely way too obsessive about it. I made a rash decision to transfer to Pitt to be closer to her, in the hopes that I could work things out and salvage the relationship (spoiler: I did not). Pitt offered me a decent scholarship and I enjoyed the new experience, but after the first semester, for a variety of reasons I descended into a bad depression. 

I spent a lot of 1999 alone in my room. In the entire year, I earned 12 credits; with a GPA closer to 1.0 than 2.0, I nearly got kicked out. Needless to say, I lost the scholarship. Paying for school became a significant challenge - the loans, grants, and other programs didn’t cover the cost of tuition. Moving off campus helped a bit, but I still had to figure out how to rush to the bursar’s office every semester to pay the outstanding balance before they canceled my registration. 

I did eventually bounce back. I started learning more and more about computer science, both in classes and on my own. I got a sequence of part time jobs that looked something like internships. I figured out creative ways to pay rent. I met my future wife. I got my act together and was able to graduate, only one year behind schedule.

Then, six months after graduation, the loan payments were due. I always knew that 5 years’ worth of tuition had to be paid back - but it always seemed abstract, and so far in the future.  I was making a decent salary, but the payments + rent + living expenses were more than I was earning. I knew if I went back to grad school, I could defer my student loan payments. I’d be racking up more debt, but I’d also be likely to make more money after I finished.

I’m glad I got an MBA. It was useful knowledge and I’ve always loved learning. It did help with the earning side, too - after graduation, I got a new job offer for $20,000 more than what I was making at that time. Obviously, though, it came with more student loans. 

I actually kept this cycle up for 10 years. Deferring student loan payments wasn’t the only reason to get graduate degrees #2, 3, and 4, but it was a big part of the motivation. 

At the peak, my wife and I had accumulated more than $200,000 in student loan debt. I was fortunate to be able to earn enough to start paying the loans down and get to a good place financially (I talked about the experience as part of a Post-Gazette article years ago). I’m happy to say that I was eventually able to pay them off completely, almost 22 years after enrolling in my first college course. 

I had immense privilege to make it this far. I had some safety nets and had more than a few things go my way - and I really hope that educational opportunity will be more equitable for far more people in the future.

What did I learn that might be helpful for others?

• While everything worked out fine for me in the end, I wish I'd spent more time reviewing the actual cost of an education. It's broadly variable. Most states have options that a good balance of quality and cost - remarkably lower than what I paid in total. Review what your options are, and consider the costs.
• I don't know if this has changed, but when I was younger, poor kids hate admitting that they're poor. I wish I'd have been able to get over that. Don't be afraid or embarrassed to discuss affordable options for college.
• I knew the loans would have to be paid back, but I didn’t really comprehend the full scope of what that meant: how much the monthly payment would be, and how much I’d have to earn to afford that payment was just an abstract concept. Look at that monthly payment every semester to make it real.
• I wish there had been better mental health support options, and more information about what was available. I had some great, really accommodating professors, but at no point in my decline was I offered the kind of help I really needed. Recognize that you might need help, and don't be afraid to seek that help.
• One of the reasons that was able to do any of this is that my private loan interest rate was lower than unsubsidized Stafford loan rates today. Right now, it's possible that private loans may be a better option, but it's even better to get grants and other financial aid that doesn't have to be paid back. Review loan options thoroughly, and pursue as many grants and scholarships as you can.