Higher Learning and Student Debt: Is it Worth It?

During March, COMPASS has focused on “Managing Debt: Loans and Money in March,” including last week’s original live chat with Sandy Crozier. Today, I offer some personal thoughts and questions about student loan debt as we continue the faith and finances conversation, specifically this month about debt. 

Timothy and his wife Allison on the campus of their undergraduate campus where they met, Pacific Lutheran University.

Timothy and his wife Allison on the campus of their undergraduate campus where they met, Pacific Lutheran University.

Before leaving the Pacific Northwest to study and complete my first graduate degree, I was a bit nervous about the potential student loan debt I was about to commit to. I shared my thoughts with my former economics professor when I saw him at my undergraduate school’s bookstore. He told me, “Timothy, it’s just money. It’s just money. It’s an investment.”

However, the increasing cost of higher education—and the debt students are taking on to complete degrees—are causing some to reconsider if the investment is really worth it. According to the Wall Street Journal, 2015 US college graduates accumulated the highest average student loan debt in history, a base average of $35,000 per graduate school graduate and $23,000 per baccalaureate graduate. It is projected that 2016’s class will face an even higher total.

It is not unheard of for those earning professional degrees to graduate with six-figure student debt, including doctors, lawyers, and yes—clergy. Many institutions of higher learning—including seminaries—are trying to curb costs, but the numbers are daunting. With loan totals so high, it is mathematically possible that one might work their entire career and never do much more than pay off their student loan debt. A report by Goldman Sachs suggests avoiding “mediocre colleges”; steering away from lower-paying majors like arts, education, and psychology; and considering other forms besides college education to prepare for a vocation.

Nonetheless, my generation—the Millennials—have the highest percentage ever of college-educated persons, according to a White House study. In our household, my wife Allison and I hold 3 baccalaureate and 3 graduate degrees between us, and Allison is finishing her masters of divinity program this spring. We make our monthly payments, hope for some relief, and trust that in time, the costs will be worth it for our vocations and careers.

Theologian Frederick Buechner has written that “vocation is where our greatest passion meets the world’s greatest need.” As God’s people, I believe one pursues an education for opportunity and continued learning, and also to follow God’s calling or vocation. I believe that when one senses that they have gifts or passions for meeting the needs of the world, their neighborhood, or society, and when they most fully follow that call, it may lead to school or extended study. It is not always a call to become wealthy, sometimes far from it, especially if student loans are a part of the process. But if one is called, they are also called to trust that they will live in the abundance of God.

So when I think about my professor’s advice in the bookstore, I believe deeply that he was right. It hasn’t always been an easy path, but the investment has been and will continue to be worth it for me at least because it has led me to create connections, to learn, and to have experiences I couldn’t have dreamed about without the education I have been blessed to receive.

If you are looking for ways to reduce your debt—student and otherwise—check out the recording of the recent COMPASS Live Chat on managing debt led by Sandy Crozier, Stewardship Development Director for the Free Methodist Church in Canada.

What has your experience been like with student loan debt? How do you live faithfully while taking it on, or working to pay it off?

timothy headshotAbout the Author: Timothy Siburg is the Communications Associate for the Ecumenical Stewardship Center and focuses especially on the center’s COMPASS initiative focused on creating conversations and resources for faith and finances among younger Adults and Millennials. Timothy also currently serves as a congregational mission developer, among a few other roles and blogs regularly on his own blog as well.

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Managing Debt

A new part of the COMPASS resources this year are live chats with thought leaders on the month’s theme featured on the blog. During March, COMPASS has focused on “Managing Debt: Loans and Money in March.”

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

This past week Sandy Crozier presented on Managing Debt offering tips and ideas for how to repay debt, have emergency savings, and to be financially fit. The recording of the chat is available here to watch the discussion and gain Sandy’s wisdom.

Please note, as this was the first COMPASS Live Chat there were a few technical issues in the first 5-10 minutes of the recording, but after that, it worked well.

Enjoy the presentation, and please share any thoughts, questions, or comments on the topic that you may have here in the questions and we’ll continue the faith and finances conversation about managing debt together.

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Managing Debt: Loans and Money in March

As the calendar turns to March, COMPASS is focusing on debt management this month. You will hear perspectives from financial advisors, debt experts, and faith based financial voices as well. As we set the stage for this conversation, it is important to briefly articulate some of the different types of debt we might face.

debtCredit Card Debt

A couple of years ago, about 6 out of every 10 millennials did not have a credit card. Since then, that ratio has changed somewhat. One thing that does seem clear is that millennials as a generational group lack some credit card knowledge, especially as they relate to credit scores.

Student Loan Debt

Among Millennials, student loan debt is a major generational challenge because of the well-documented increase in the cost of education over the past two decades. Natalie Kitroeff recently noted “Four Ways Student Debt is Wreaking Havoc on Millennials.” Natalie notes that:

  • Student debt seems to dampen home buying
  • Young people are delaying starting families
  • Millennials are saving less than they could be
  • College loans make it hard to be financially healthy

How do we manage these and other kinds of debt? How do we faithfully give and live when facing the reality of debt?

These are questions that there aren’t easy answers to. For example, most of the above observations are true for my wife Allison and me. We have found that it is most helpful to remember the reasons for the debt in the first place.

We have yet to buy, or even look for a home because of our educational and vocational plans as we prepare to be a pastor (Allison) and a rostered leader in ministry (me). We have taken on this debt largely because we believe that our education matters, and that we are called to serve in capacities where an education will be invaluable. So in this sense, these loans are and remain an investment on our part in our present and future.

Conversations about Debt

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

Sandy Crozier, Stewardship Development Director of The Free Methodist Church in Canada

This month COMPASS is beginning a new initiative offering a monthly conversation in real-time on the month’s theme. The first conversation will center on topics related to debt and how to manage it. It will be held on Tuesday March 22nd at 8pm EDT/5pm PDT. Sandy Crozier will be our topic leader. Sign up for the Live Chat at https://stewardshipresources.org/compass-live-chats. If you have questions that you would like to discuss, please let us know in the comments, via Facebook or Twitter, or by email.

What questions do you have about debt and managing it?

This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.

Image Credit: Debt