Why I pay my student loans.
Over the weekend, Lee Siegel wrote an op-ed piece in the New York Times justifying why he defaulted on his student loans and recommended all students do the same.
I am utterly appalled and insulted.
This is just plain bad advice. I understand this was an op-ed piece and Siegel is entitled to his opinion. If the article stayed firmly in the realm of opinion — I may not be as outraged (this is probably not true, I’d probably be just as outraged). It was irresponsible and immoral of Siegel to blatantly provide such advice without providing readers further insight about the consequences of taking such an action. Siegel even goes on to advise students to open extra credit cards before defaulting. I assume he is probably also going to suggest in his upcoming ‘memoirs about money’ that you take on credit card debt (the worse kind of debt) and just declare bankruptcy — because heck if others can do it why not he?
While I do not agree with his morals, decision, and advice, I do agree that the cost of education has gotten out of control and lending institutions make it way too easy for 18-year-olds to take on tons of debt without fully understanding the implications of their actions.
Offering a loan to an 18-year-old so they can go to college — to dorm, party, and oh yes, get an education — is pretty much like offering candy to a baby. It’s just too easy. As an 18-year-old, you are not thinking about repaying back that debt. You’re thinking about how you worked so hard to get into college and how you will use that money to have the best four years of your life.
As someone who came from a single-parent, middle-income household, I can understand being a teenager and having the same sense of entitlement and hubris as young Siegel did and wanting to attend the best college I could get into. I decided to attend NYU instead of a more affordable state school, despite my mother’s protest. I did not heed my mother’s advice and thus accumulated over $90,000 in debt upon graduation.
However, unlike Siegel, I eventually grew out of my teenage phase and took responsibility for my actions. It’s called being an adult.
I do not regret my decision to attend NYU. It was four great years, and I received a great education. And similar to Siegel, going to NYU and taking out a loan was a means to an end. It was a means to try and advance myself in life, and it provided me opportunities I wouldn’t have without an education.
It was the best money I ever spent, but the price was steep. I had to work part-time during the school year, take on extra course loads so I could graduate early and save a semester of tuition. Despite my reluctance, I did end up taking a job in finance after graduation upon the realization that 1) my mother was right (don’t tell her I said that) and 2) I needed a well paying job to pay off my debt.
While I may not recommend this route for everyone, it is possible. I loathed working in finance but it was a means to an end, and it helped me reduce my debt. That was the price I paid for taking on the loans — which I understand was my choice to take on and my responsibility to bear.
I’m now happily settled into a new career, and yes, I’m still paying off my student loans. If I had listened to my mother and went to a more affordable school, would I have ended up in the same place? Probably. Would I be the same person I am today? Most definitely not.
So contrary to Siegel’s belief, you can come from modest means, attend an expensive university, pay your loans, and even pursue a vocation that is aligned with your “particular usefulness to society.” Siegel justified his actions by saying there are worse crimes that go unpunished. Just because there are worse crimes does not make this crime any less criminal. I do not base my actions or moral compass on those who are ‘getting away with worse crimes.’
Life is not always fair. There will always be people who are more privileged. There will always be people who make more money and have a better life. But it is your choice to determine what kind of life you lead and your viewpoint on life. You can compare yourself to the more fortunate and always feel like you’re getting screwed or you can compare yourself to the less fortunate and feel lucky.
