The Student Debt Challenge

By Marcia ShetlerGraduates with Student LoansIn a month or two, commencement ceremonies will take place at colleges and graduate schools across North America. Can you imagine graduates walking across the stage and receiving another slip of paper besides their diploma? That document would be their student loan bill.

According to US News & World Report, in recent years seventy percent of US students graduated with student loans. So for every ten graduates you see filing past you, seven of them would receive that piece of paper. The Globe and Mail reports similar statistics for Canada, where four students out of ten might have no student debt. What might the numbers on those papers look like? In 2016, the average Canadian graduate had more than $25,000 in debt. In the US, it was more than $37,000.

Student debt creates many challenges:

  • weight-loss-850601_1280The University of Toronto reports that students who took out more student loans were more likely to have poor mental health in early adulthood;
  • Time Magazine says that student debt can delay major life events such as buying a home, getting married, or having children;
  • Time also says that graduates with debt may work more than they wish, including taking a second job;
  • and MarketWatch reports that those who took out loans to pay for higher education but did not complete their degree have the most difficulty repaying their loans.

But student debt doesn’t have to be part of your new normal. There are things you can do to avoid it. And if you’re challenged by student debt, there are ways to make it more manageable.

This month, the COMPASS Initiative will look at these two sides of the student debt challenge:

  • Get great insights every week on this blog and on our Twitter feed and Facebook page.
  • Grab your lunch or a cup of coffee and join us for a Live Chat with Darryl tip-jar-1796480_1280Dahlheimer, Program Director for LSS Financial Counseling—a partner of Everence—on Thursday, April 20, 12:30 p.m. Eastern time, 11:30 a.m. Central time, 10:30 a.m. Mountain time, and 9:30 a.m. Pacific time. Darryl will tell us about new student loan repayment options and share stories of experience and hope about this challenging issue.

Student debt can be a burden that affects our ability to live the life to which God has called us. It impacts how we steward what God has given us to manage and our freedom to be generous. Whether we are considering how to finance education or deal with the financial ramifications afterward, the key is seeking God’s guidance and choosing wisely. I hope the information shared this month will help you conquer your Student Debt Challenge!

About the Author

marcia shetlerMarcia Shetler is Executive Director/CEO of the Ecumenical Stewardship Center. She holds an MA in philanthropy and development from St. Mary’s University of Minnesota, a BS in business administration from Indiana Wesleyan University, and a Bible certificate from Eastern Mennonite University. She formerly served as administrative staff in two middle judicatories of the Church of the Brethren, and as director of communications and public relations for Bethany Theological Seminary in Richmond, Indiana, an administrative faculty position. Marcia’s vocational, spiritual, and family experiences have shaped her vision and passion for faithful stewardship ministry that recognizes and celebrates the diversity of Christ’s church and the common call to all disciples to the sacred practice of stewardship. She enjoys connecting, inspiring, and equipping Christian steward leaders to transform church communities.

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, follow us on Twitter, and join the COMPASS community on Facebook.

Photo credits: pixabay.com

A Word to all Recent and soon to be Graduates

Congratulations, graduates! You have studied and grown, and are now ready to be sent out or start new chapters. For some of you, this may mean your first full-time adventure in the working world. For others of you, this may mean moving cross-country. For others, it may mean the transition from one school and degree to another and further study.

Whatever your chapter and transition looks like, congratulations! Your hard work and dedication deserves to be praised.

graduatesMuch has been shared on this blog (and will continue to be shared) to spread light on thinking about faith and finances. COMPASS has and will continue to be a place and resource to think about student debt, the different challenges of finances, and yet the hope and promise of abundance that we share in our collective faith.

Today, I don’t want to spend much time thinking about these challenges and bills—some that you are likely already facing and paying—and others—such as your educational debt—which may become due after deferment in about six months.

Rather, today I want to encourage you to give thanks: to celebrate and be joyful. Give thanks for your focused study. Give thanks for your family, friends, and loved ones who have supported you up to this point. They may have helped buy you dinner, get your study food, be the listening ears to talk through the challenges of life away from home at school, or shoulders to cry on when things didn’t quite go as you had hoped. These people—your network and community—have been a big part of your journey to this graduation. Thank them. Celebrate with them, and allow them to celebrate with you.

Congratulations, graduates! May your discernment and transitions into whatever lies ahead be blessed.

A Personal Word of Thanks

In the spirit of giving thanks, I too wish to give thanks today. I have recently received an exciting call to serve as the new Director for Stewardship of the Nebraska Synod of the Evangelical Lutheran Church in America. In my transition into this new chapter, I will no longer be serving as the Communications Associate for the Ecumenical Stewardship Center (ESC).

I am grateful for the opportunity to serve in this way these past 2 years. I am tremendously grateful to Marcia Shetler, the Executive Director/CEO of ESC for this opportunity. I am also excited to share that though I will no longer be serving in this capacity; I will continue as a committee member for COMPASS and ESC and will continue to offer thoughts and perspectives on this blog about once a month as a volunteer contributor. I look forward to continuing the faith and finances conversation with all of you well into the future.

timothy headshotAbout the Author: In addition to these roles and news, Timothy Siburg also currently serves as a congregational mission developer, among a few other roles. He blogs regularly on his own blog as well.

Image Credit: Graduates

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.