Grad students are now and will still be able to take up to $20,500 in
Stafford loans a year. But while demonstrated financial need currently
determines how much of the loan burden is subsidized, all Stafford loans
taken by graduate students will be unsubsidized. Though the change will
cause an uptick in long-term costs, it's not likely to stop a future
graduate student from pursuing higher education, says Kevin Michaelsen,
director of financial assistance at North Carolina's Meredith College.
"I think that when they are looking at loans, some will opt to not take the unsubsidized, but most are trying to make a change in their career, so the only way they can is to take that loan," Michaelsen says. "They likely will go ahead and take that loan because that's the only route available." -usnews.com/education
After so much heartache and emotional torture over my decision to enroll in a graduate program this fall, I think I may have to let the dream go. Despite the confidence of university financial directors and US politicians, I don't think that I can justify taking out 30,000 in unsubsidized loans at a fixed interest rate of 6.8% so that I can join the long breadlines of unemployed teachers. And I don't think I'm alone, Mr. Michaelsen. If the politicians and heads of universities really believe that young people who are already overburdened with undergraduate loans, no job prospects, no savings, no affordable housing, no welfare support and no health insurance are really going to continue lining up in droves to borrow money at unconscionable borrowing rates from greedy universities, I have to call bullshit.
How long can those in power continue to disenfranchise the young? How long will the young people of this country continue to quietly endure the loss of opportunity while waiting blindly for a solution to be handed down from above? How long will aging parents continue to support their 20 and 30- something children by holding on to jobs that young people desperately need? How long will middle-aged commentators continue to force-feed the outdated, WWII wisdom of "work more, work harder, live more frugally" to young people who are working longer, harder hours for less pay and higher living expenses than ever before? Who can't even seek treatment for work-related injuries and are still living in cramped shared houses or their parent's basement at 30?
Yesterday, I worked 12 hours. I was paid for only half of those hours, despite the fact that the extra six hours were for grading and evaluation work that is considered "mandatory" for my position. I am lucky enough to have health and dental insurance through my employer, but when I tried to find a dentist recently, I was told that there was only one in my network. I live in an income-restricted apartment but over half my paycheck goes to pay my rent. I drive the same 20 year old car that my parents bought for me in high school, but most of the time I can't afford the gas, so I take the bus or walk. I walk a lot. I prepare all my meals at home, and I take my lunch to work everyday. I have a $200/month budget for all living expenses. I'm lucky. I'm so lucky.
My friend is 21 years old. He didn't go to university because he simply couldn't afford it. From 18 to 20, he worked in a factory in Nevada. Now in Portland, he is unemployed and living with 3 others in a one-bedroom apartment.
My friend is 26. She has two college degrees. She has never made more $12 an hour her whole life. She has a job, but can't get full time hours. She has nearly $60,000 in student loan debt.
My friend is 28. She is finishing her second master's degree. After completing her first MA, she briefly had a good job, but was laid off after just six months. She lived on unemployment until it ran out, but failed to find another job. When she finishes her current program, she will have over $100,000 in student loan debt. She has just six months job experience, an ivy league education, and no prospects.
My friend is 28. She has a master's degree. She has full-time job in her field, but makes just $15/hour. As part of her job, she has to live outside the city for 2 week periods of time. Unable to find affordable housing, she simply crashes on couches when she comes "home". Nearly all her paycheck goes to loan payments. She loves her job and her position is desperately needed, but chronically underfunded. She doesn't see herself getting a raise for at least 5 years.
My friend is 29. He was diagnosed with cancer at 23. He didn't have health insurance. He had over $250,000 in medical bills. He declared bankruptcy at 25, along with his parents. He hasn't been able to rent an apartment or qualify for a student loan since. He never went to college, and now doesn't think he ever will. He works in construction in california. He still doesn't have health insurance.
My friend is 22. He works at coffee shop. He went to university for 2 years with loans that were co-signed by his grandmother. During his second year, she passed away and he was unable to find another co-signer. He was forced to drop out of school and defaulted on his loan payments. His credit is not good enough to rent an apartment, and he was never able to finish his degree. He is, however, still making payments on his loans.
I am 26. I work as an ESL teacher at a for-profit school. I want to work with immigrant populations in public high schools, but I need a master's degree to become a state licensed teacher. I applied to several programs, and was enthusiastically accepted by all of them. Directors raved that I am "exactly what public schools are looking for" and my skill set is "desperately in need". But with school budgets slashed around the state and more than 400 Oregon teachers laid off this fall, I don't feel any sense of security. In fact, despite the acknowledged need, ESL programs were among the first axed from local school districts, who prefer to contract the work piecemeal through private contractors. Not one of these private contractors is required to provide health insurance, full-time hours, or pay for preparation time. Like so many of my friends, I'm not trying to live the dream of a big house in the suburbs or wasting my money buying frivolous things. I genuinely seek to help those in need, earn a living wage, and be self-sufficient.
I don't think that the young people in this country are lazy, I think they are desperate. We were raised with a strong belief in our own abilities and a faith in the old formula of: hard work in school + a university degree = a good job. We never expected to find ourselves here, after we did everything right. And the hardest part is the fact that so many people who should know better keep telling us to just work harder, while demanding social security and retirement benefits for themselves. I recently listened to a radio commentator tell me that "if you're in your 20's and not saving for retirement, you should be scared of your prospects for the future." Saving for RETIREMENT? I'm trying to save for dinner tonight. I'm trying to save for the past- trying to pay off the degree you insisted would land me a job!
So now, here I am, losing sleep and sanity over the hard choice in front of me: more debt, more loans at gouging borrowing rates with no job security in the future, or more of the same daily struggle to make ends meet? In my opinion, American society seems unable or unwilling to validate the struggles of the young. Why? I think it's time to take a reality check. I don't want to be enslaved by my own debt. I still want the opportunity to make choices about my own future. I still want to believe that I can do anything if I just work hard enough. I still dare to hope that things might get better, not worse, in the future. But I might have to let go of these old dreams in the face of my new reality. I might have to find my own way, even if people think I'm wrong. Even if I sometimes think I'm wrong. The important thing now is to make a decision and stick with it, no regrets. But with the understanding that change is inevitable and I might find my way back to this same place in the future.
"I think that when they are looking at loans, some will opt to not take the unsubsidized, but most are trying to make a change in their career, so the only way they can is to take that loan," Michaelsen says. "They likely will go ahead and take that loan because that's the only route available." -usnews.com/education
After so much heartache and emotional torture over my decision to enroll in a graduate program this fall, I think I may have to let the dream go. Despite the confidence of university financial directors and US politicians, I don't think that I can justify taking out 30,000 in unsubsidized loans at a fixed interest rate of 6.8% so that I can join the long breadlines of unemployed teachers. And I don't think I'm alone, Mr. Michaelsen. If the politicians and heads of universities really believe that young people who are already overburdened with undergraduate loans, no job prospects, no savings, no affordable housing, no welfare support and no health insurance are really going to continue lining up in droves to borrow money at unconscionable borrowing rates from greedy universities, I have to call bullshit.
How long can those in power continue to disenfranchise the young? How long will the young people of this country continue to quietly endure the loss of opportunity while waiting blindly for a solution to be handed down from above? How long will aging parents continue to support their 20 and 30- something children by holding on to jobs that young people desperately need? How long will middle-aged commentators continue to force-feed the outdated, WWII wisdom of "work more, work harder, live more frugally" to young people who are working longer, harder hours for less pay and higher living expenses than ever before? Who can't even seek treatment for work-related injuries and are still living in cramped shared houses or their parent's basement at 30?
Yesterday, I worked 12 hours. I was paid for only half of those hours, despite the fact that the extra six hours were for grading and evaluation work that is considered "mandatory" for my position. I am lucky enough to have health and dental insurance through my employer, but when I tried to find a dentist recently, I was told that there was only one in my network. I live in an income-restricted apartment but over half my paycheck goes to pay my rent. I drive the same 20 year old car that my parents bought for me in high school, but most of the time I can't afford the gas, so I take the bus or walk. I walk a lot. I prepare all my meals at home, and I take my lunch to work everyday. I have a $200/month budget for all living expenses. I'm lucky. I'm so lucky.
My friend is 21 years old. He didn't go to university because he simply couldn't afford it. From 18 to 20, he worked in a factory in Nevada. Now in Portland, he is unemployed and living with 3 others in a one-bedroom apartment.
My friend is 26. She has two college degrees. She has never made more $12 an hour her whole life. She has a job, but can't get full time hours. She has nearly $60,000 in student loan debt.
My friend is 28. She is finishing her second master's degree. After completing her first MA, she briefly had a good job, but was laid off after just six months. She lived on unemployment until it ran out, but failed to find another job. When she finishes her current program, she will have over $100,000 in student loan debt. She has just six months job experience, an ivy league education, and no prospects.
My friend is 28. She has a master's degree. She has full-time job in her field, but makes just $15/hour. As part of her job, she has to live outside the city for 2 week periods of time. Unable to find affordable housing, she simply crashes on couches when she comes "home". Nearly all her paycheck goes to loan payments. She loves her job and her position is desperately needed, but chronically underfunded. She doesn't see herself getting a raise for at least 5 years.
My friend is 29. He was diagnosed with cancer at 23. He didn't have health insurance. He had over $250,000 in medical bills. He declared bankruptcy at 25, along with his parents. He hasn't been able to rent an apartment or qualify for a student loan since. He never went to college, and now doesn't think he ever will. He works in construction in california. He still doesn't have health insurance.
My friend is 22. He works at coffee shop. He went to university for 2 years with loans that were co-signed by his grandmother. During his second year, she passed away and he was unable to find another co-signer. He was forced to drop out of school and defaulted on his loan payments. His credit is not good enough to rent an apartment, and he was never able to finish his degree. He is, however, still making payments on his loans.
I am 26. I work as an ESL teacher at a for-profit school. I want to work with immigrant populations in public high schools, but I need a master's degree to become a state licensed teacher. I applied to several programs, and was enthusiastically accepted by all of them. Directors raved that I am "exactly what public schools are looking for" and my skill set is "desperately in need". But with school budgets slashed around the state and more than 400 Oregon teachers laid off this fall, I don't feel any sense of security. In fact, despite the acknowledged need, ESL programs were among the first axed from local school districts, who prefer to contract the work piecemeal through private contractors. Not one of these private contractors is required to provide health insurance, full-time hours, or pay for preparation time. Like so many of my friends, I'm not trying to live the dream of a big house in the suburbs or wasting my money buying frivolous things. I genuinely seek to help those in need, earn a living wage, and be self-sufficient.
I don't think that the young people in this country are lazy, I think they are desperate. We were raised with a strong belief in our own abilities and a faith in the old formula of: hard work in school + a university degree = a good job. We never expected to find ourselves here, after we did everything right. And the hardest part is the fact that so many people who should know better keep telling us to just work harder, while demanding social security and retirement benefits for themselves. I recently listened to a radio commentator tell me that "if you're in your 20's and not saving for retirement, you should be scared of your prospects for the future." Saving for RETIREMENT? I'm trying to save for dinner tonight. I'm trying to save for the past- trying to pay off the degree you insisted would land me a job!
So now, here I am, losing sleep and sanity over the hard choice in front of me: more debt, more loans at gouging borrowing rates with no job security in the future, or more of the same daily struggle to make ends meet? In my opinion, American society seems unable or unwilling to validate the struggles of the young. Why? I think it's time to take a reality check. I don't want to be enslaved by my own debt. I still want the opportunity to make choices about my own future. I still want to believe that I can do anything if I just work hard enough. I still dare to hope that things might get better, not worse, in the future. But I might have to let go of these old dreams in the face of my new reality. I might have to find my own way, even if people think I'm wrong. Even if I sometimes think I'm wrong. The important thing now is to make a decision and stick with it, no regrets. But with the understanding that change is inevitable and I might find my way back to this same place in the future.
