Days Away from Defaulting on 50K in Student Loans
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This came in as a comment, but deserves a post:
Dear Peak Shrink,
I too am finding myself days away from default. In total, I am about $50,000 in debt to student loans from three sources: Sallie Mae, and 2 different federal sources. My federal loans are in good standing, one is half way paid off right now. However, in the three years since I graduated, I have only been able to make 12 payments on my Sallie Mae loans. I haven’t been able to make any for the last almost 6 months. I am an assistant manager making $8.05 an hour…of that $.65 is an attendance bonus. I have been late due to traffic accidents twice, thus dropping my wage the $7.40 an hour for the whole week.
I barely have money to put food in my mouth. And as gas prices creep up, the less food I have to eat. I have lost 10 lbs in the last month because all I have to eat is cereal, PB&J and ramen. No fruits, no veggies, hardly any meat. I went to school for journalism (something I am very good at) only to graduate in an environment of closing newspapers…leaving me jobless.
I bounce from job to job trying to find better wages. I work full time as it is and make less than $1,000 a month. I donate plasma to put gas in my car and food in my mouth. I’m looking for a second job so that MAYBE I can make some payments. I’m actually going to talk to an airforce recruiter, maybe I can be an officer with my degree. As my credit goes down, payments like my car insurance go up.
Like everyone else, I feel like I’m never going to accomplish anything in life. I have found love but why would someone marry me when my credit will just drag them down. I would like to go back to school for a degree in biotechnology -genomics- The talk right now is that’s a career of the future and something I am very interested in…but I can’t pay the loans I have now, how could I justify getting more into debt just so I can pay back the debt I already have? I probably couldn’t even get any loans. I feel hopeless, worthless, and simply don’t see the point anymore. How can companies do this to us? I borrowed the money and I will pay it, but times are tough…why can’t anyone see that?
Days Away from Defaulting on 50K
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So, if you ask “What’s wrong with the USA, and where are we headed?” this comment provides us one painful answer.
We older baby boomers need our twenty-somethings, but this is how we’ve left them: deeply in crushing educational debt with a corrupt lending system that financially rapes them, allowing them no escape. The jobs they got into debt for have disappeared, and these, historically, were GOOD jobs with a future for the best and brightest among them. They work crappy low-end jobs which overwork them and does not offer them a living wage. They face a housing market where the houses aren’t affordable to any but the elite class. They live in suburbs that requires them to own a car to get to work, and as gas prices rise, they can’t afford to eat well. They better not get sick, because their crappy jobs don’t provide health insurance, and they can’t afford to buy it privately.
Basic commodities are rising daily. They live in clusters in sub-standard student and post-student ghettos or move back with parents who tell them they aren’t “motivated.” They are overworked, underpaid, undernourished, and with a “bad attitude.” (“They could have put that $10. on their student loan debts, instead of eating at a fast-food restaurant!“) Even their love lives are impacted, because they don’t want to “burden” those they love with the horrors they are living with. The military appears to be the best option.
So, as Peak Oil aware parents, we go to them and say: “Now, after all of this, we give you the Three E’s: Economic collapse, Environmental degradation, and Energy depletion.” Wow! What a shock to us!! They don’t want to hear it!!! They won’t listen to us and take appropriate action!!!
Can you hear them? They are saying: “Thanks a lot, Baby-Boomers. You took yours, and you left us with the spoils. Now what are WE suppose to do?”
Are we really puzzled why our twenty-something sons and daughters”wastes” their time in bars, smoking pot, gaming, casual sex, and party time?
There is a revolution coming, and no one should be puzzled why. This letter is one of the many that helps explain it. How many years does it take you to get out of a 50k debt working for $7.40 an hour?
Only a fool doesn’t bite the hand that bleeds you. Is it an invisible hand? Can these same 20-somethings identify what’s wrong and where they should be directing their rage? This poor contributor directs it inwardly, and takes her predicament as an indication of personal failing…and she’s got a degree in journalism. She says she’s not alone. She looks around at her peer group and she feels just like all of them them – “I’m never going to accomplish anything in life.”
Of course any of you can point to bright spots where 20-somethings are doing great things and are hopeful and helpful, but what about young people like this? Is this how young people around you are feeling and talking? Does she have the proper frame in viewing her situation? What economic advice would you offer her? What emotions does a letter like this provoke in you, and how would you feel if you were in her shoes?






Reader Comments
I’m really sad to read this. The OP is not alone in her situation, and it’s not her fault!
I can relate to the sense of worthlessness and “no future” she describes, though I’m very fortunate to have a more solid support system. I did everything “right,” was a great student throughout undergrad and graduate school, participated in national professional groups and projects, have good recommendations, have worked almost 5 years in my organization plus earned the master’s degree required for promotion, and even passed my final promotion interview as the top candidate. One year after all this, because of budget crises, I’m still stuck in my original dead-end high school level job making less than 10K/yr. Even in the middle of this economic collapse, I have the “bright-siders” in my profession telling me there’s no problem and jobs are right around the corner. Underneath this cheerfulness is a darker undertone, the attitude that “The economy has nothing to do with it; you just can’t get a job because you whine too much/you’re unwilling to pay your dues/you’re unwilling to relocate anywhere in the country[I can't afford it!].” I understand that a negative attitude becomes self-fulfilling, but I also know that we can’t fix anything until we admit there’s a problem.
To the OP and others like her–There is this sick, sick focus in our culture on jobs and careers which tells you that if you haven’t had professional success, you’re worthless. You have to eradicate this programming or it will poison you. If you are peak aware you’ll understand that a lot of these factors are beyond your control. Don’t base your self-worth on your crappy job–try to develop skills for self reliance and support systems that will cushion the collapse. Most of the things you can do to prepare for peak will also help with economic survival. Can you live with roommates or in an ecovillage situation? http://www.laecovillage.org has a list of intentional communities, and some focus on affordable housing. I’ve read about informal urban communes in the sixties, when housemates would pool resources–someone might work in a restaurant and bring back leftover food. Dumpster diving might be an option.
I wish I had more to offer. Just please don’t buy into the lies of this criminal system. You are a valuable and hardworking person and you deserve much better than this.
All I can say to these unfortunate young people is that I am so very sorry for their pain. I have young adults also in my life that could be one day facing the same thing. My kids have bitten the hook despite some of the creative type of upbringing they had on a commune and they fight the knowledge that I once told them of “the world going under”. They do have some skills they could possibly fall back on if only they wouldn’t blame themselves and pretend it wasn’t happening even though it is all around them. Cognitive dissonance runneth deep but the facade is crumbling and as their peer group continues down the lemming path it will become more evident that it is truly not their individual faults, it is humanity’s ruin. Like “Straw Dogs” we as a species are really not conscious and aware most of the time and pretty much have made up our minds awhile back how we assume life will be until it slaps us back upside the head. My only advice would be to unplug from the MSM and go with gut instincts on all levels if you can somehow sort them out. Unwind a little. Don’t take the old stuff too seriously anymore . It is a new time and a new day and the old world has crumbled. Old patterns and concepts have stopped working. There is a new precedence beginning to arrive. And a new energy emerging. Seek it out. Then connect with a few enlightened individuals in your group to discuss and implement a plan. And PRONTO is what I have to add as this is a quick running stream that’s dragging everyone under faster than one can respond. But along the way definitely have a good time: PARTY LAUGH CRY MAKE LOVE. Go to sleep , get up and DO IT AGAIN. This is what we will have left to our names: Friends, emotions, fear, sunlight, sanity, laughter, anger, water, insanity, food, shelter, and tender love.
Amen! This has been my story since I earned my Bachelor’s. I worked two jobs at a time for the better part of six years after finishing college, and that was just to stay poor. I finally had to move in with my parents, back into my childhood bedroom, to pay off debt and finally set aside some money into savings. Then I was able to move back out on my own, and guess what? I’m back where I was years ago. I lost my job at the beginning of this year, on top of it, and eventually had to move in to an undesirable living situation with my in-laws because I couldn’t afford to pay rent anymore, I’d used up my savings, and I amassed a ton of credit card debt trying to stay afloat. I felt like a loser for so long, so I had to finally sign up for more debt in the form of student loans and return to school for a second degree in a science field that is more “useful” than my BA in Communication. In less than a month I’ll be turning 30, and I’m finally putting an end to the “screwing around” (struggling without a living wage or a direction in life), though school is difficult and I fear the consequences of flunking out. It’s not right!
Dear Peak Shrink,
Is it logical to simultaneously condemn the older folks for the creation of a corrupt system and lament that the younger folks are not going to get what is due them of the spoils of said system? We need to stop obsessing about who is responsible for what, it’s just another excuse to do nothing. People lied to us, we believed the lies. Now we know the lies for lies. Time to stop wishing the lies were true. We all have strengths and weaknesses. I could make a case that being young means a more flexible skill set and a more adaptive mind. Or that being young means one has a longer time to exit this cheap oil detour in favor of a more satisfying life. Or that a lack of offspring frees one from the guilt of adding more human life to an already overburdened planet and provides time to choose not to do what we perceive our parents have done to us; invite us here, heedlessly teach us to live an unsustainable lifestyle then throw their hands in the air as the rug is pulled from under it. A professor once said in a class, addressing the tendency of students to procrastinate on assignments “Remember, the sooner you get behind, the more time you have to catch up.” I know plenty of people who are a lot older than this young college grad but who are just as or far more mired in the consequences of poor decisions supported by a very sick culture. They really aren’t likely to find much silver lining in the coming storm cloud.
Also, what is a GOOD job, with a future? One that supports a person’s long-term “right” to live a life based on energy slavery, that destroys the earth, that fosters consumption as the only meaningful activity? Is a GOOD job one that the worker likes? When did it become the norm to make decisions on what we like rather than what we need and what is good for us? About the same time we started getting addicted to TV, drugs, sugar, alcohol, sex, shopping, credit, money, etc. and began divorcing ourselves from interactions with anyone different from us? Through most of history, work was just what needed to be done. We didn’t spend our mental time loving it or hating it, we just did it. And we didn’t go home and self-medicate over feelings of meaninglessness. Mostly we were just too damned tired!
I would define a GOOD job as one that combines work with hands and brain, that is community based, that is eco-logical. It must be healthy for those engaged in it and transparent in its respect for the planet. How much does a job like that pay? It is unfortunate that this is the relevant question, especially since so many young folks find themselves well in debt before they can even ask if it IS relevant. I don’t know what path will lead from a place of seeming hopelessness to one of healthy empowerment. I do know that it will start with a desire to have an eyes-wide-open look at the lies that make us willing slaves to an abusive culture and a corresponding change in what is deemed valuable.
Regards