We all know that Jesus can make a way out of no way. *Let the church say amen* However, despite all of our prayers to Student Loan Jesus, we can’t seem to get out of Sallie Mae’s way. We have been praying incessantly to manifest a Russian hacker that will irrevocably erase all of our student loan debt. *Touch your neighbor if you agree* The Angels of Forbearance and Deferment can be a welcomed relief, but they only provide a temporary solution. Until the day Putin gets bored again and needs a good laugh, unfortunately, we will eventually have to face Sallie Mae Satan.
Some might argue that the American government owes us – especially Black people – so why should we pay back these loans? Promises to our ancestors were never kept, so why keep our promises to pay? Ever thought about the present value of 40 acres and a mule? I have. And yep, you guessed it. It’s a whole hella lot.
So, I get it. I understand all of these deep seeded feelings. And, I am VERY clear on the inequities systemically imbedded in the very foundation of our country. But, I also happen to believe in honoring commitments and paying what you owe. Hear me out. I have a story to share.
I have a dear friend. Her family is from Haiti. Sometime in the late 60s or early 70s, her parents skipped right on pass the good old United States of America (smart move) and immigrated to Canada in search of better opportunity for their family. They lived a decent life, but certainly not wealthy by any means, barely middle class. My friend worked all throughout college and moved to Chicago for her first corporate job shortly after graduation. In hindsight, we now know that job paid her very little. It seemed a lot at the time, but really it was just enough to pay rent, eat, get back and forth to work, and send money home to her mother.
To advance in her field, it became evident she needed a graduate degree. It was also evident that she had no money to pay for this much needed degree. She enrolled in a solid program here in Chicago, borrowed only the funds needed (nothing extra), and when it was all said and done, she had a shiny MBA worth close to $150,000. That degree opened doors to the next opportunity that doubled her salary, which was the start of an illustrious career path.
My friend just wrote her last check to the man. It took about 15 years, but she is now student loan free. A burden is lifted and she feels amazing. Her journey was not without hiccups and it wasn’t easy; there certainly were a few deferments along the way and times where she made the hard choices between using her extra cash for a vacation and reducing debt. However, with a fundamental belief of paying what you owe, a desire to reduce financial stress, build wealth and making financial choices that aligned with her desires, she did it. Mission accomplished.
Moral of the story?
Invest in you
Leveraging debt for education is one of the best investments you can make. No one can ever take away what you earned and it will continue to pay dividends in many ways. Not only for you, but also for future generations you touch.
Be responsible
You have to be smart about the amount of debt you assume for education. Do not take more than you need for your program! We all know someone who has $200,000 in student loan debt and earns $45,000 a year. Where they do that at? The math and logic simply don’t make sense.
Debt should be commensurate with income potential. A good rule of thumb is total student loans should not be more than annual starting salary. Please spread this message to the young people in your life. Starting off with mounds of debt is one of the contributing factors to the racial wealth gap. That’s a whole other story that we will tackle at a later time. No soapbox for me today.
Be resourceful
Of course, life happens. No one is immune from the possibility of tough times. But, speak up! Do your research! When things get rough, call the man. Ask for deferment. Be consistent and persistent with your communication. Ask about forgiveness programs. Did you know certain professions (teaching, military, government or non-profits) lend to favorable forgiveness terms? Have these conversations prior to defaulting on the loans.
Oh, and keep your good eye on what’s happening in Washington D.C. The tomfoolery! That’s all I will say for now.
Honor your commitments
That girl named Karma is not your friend and please do not get on her bad side. Honor money the way you want to be honored. Having a bad spirit around money matters will show up in your life in other ways. There is no escaping it.
Check out Rita Brent’s Student Loan Jesus Prayer. I’ve seen it a gazillion times and still have shoulder-bouncing chuckles. Keep praying saints. We shall overcome.
Corliss is a lifelong Chicago West Sider who has a thing for money and has learned from a few mistakes over the years. She is a fierce auntie, passionate about improving community and educating our babies. She happens to be a Certified Financial Planner TM, has worked a few decades in many areas of banking and views financial literacy as a personal ministry. Join her Facebook page Got My Mind on My Money and My Money on My Mind. Contact her at corliss.garner@cloindustries.com with comments or questions.
DISCLAIMER
The topics discussed and opinions given are not intended to address the specific needs of any reader. They are for informational purposes only and are not to be construed or relied upon as pro-bono, paid or any other advice. The information herein does not offer legal, tax or other advice, and readers are encouraged to discuss their individual financial needs with the appropriate professional advisors. The opinions and thoughts expressed herein are solely those of the Writer and not those of the Writer’s employer(s) or any other affiliations. Writer assumes no liability for any loss or damage resulting from errors or omissions or reliance on or use of the material herein.
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