The Pastor’s Pen By Rev. Joel Cochran The Chapel in Marlboro Avoid Unnecessary Debt I was visiting with my friend Fred yesterday. “The front page of the newspaper said that student loans are the biggest source of debt in America,” he said. “Yes,” I replied, “I was reading about that, too.” Fred, who is a college graduate, mentioned, “It appears to me that kids go off to school and get a high cost education, then graduate to a low paying job.” Fred’s remark has the element of truth. A report from the National Economic Research Associates, Federal Reserve Bank of New York states that student loans were at $870 billion. Compare this figure to car loans ($730 billion) and credit card loans ($693 billion). Low paying jobs make it difficult to repay these loans. It is no secret that the average age for marriage in America has been rising – and debt has a large part in this change. The average age for marriage in America is 28 for men today. For women, it is a little lower, but not much. The first years after graduating from college, most young adults want to have their finances in order before marrying. Handling the student loan burden postpones marriage for these graduates. While in school, few thoughts are given to the ballooning debt being acquired. Even worse, credit card companies push their product onto these young adults, who have usually not been warned against acquiring too much debt from their parents or teachers. Wouldn’t it be nice if schools and churches would teach teens what it means to be responsible with their money? Unfortunately, youth is heady and the notion exists that these student loan debts will not stand in their way for the future. But then, after graduation, reality sets in. The first few years of making student loan payments are tolerable; after about five or six years, a feeling of bondage takes over. And it is bondage. The bondage of debt is ages old, even mentioned in the Bible: “…the borrower is servant to the lender” (Proverbs 22:7). Acquiring debt is fun – it is so easy to sign on the student loan line, especially when you have dreams of landing a high paying job after graduation. For many, such a job will always be just that: a dream. Borrowing and spending provide a sense of power and control over one’s destiny. This is an illusion. Spending borrowed money is a dangerous road to travel, no matter what the reason. A person actually exercises greater control over his or her destiny by not choosing to spend borrowed money today, especially when it is used to purchase promises that may not materialize tomorrow. Saving, paying as you go, and learning that you can do without are not lessons that should be rejected. “Fred,” I said, “I think the problem is not so much in borrowing itself. We can all learn the importance of borrowing responsibly. I also think acquiring an education is good. I think the problem is out of control borrowing. Maybe students could attend school for a year, and then work a year to pay off any money they might have borrowed. Then go another year, and then work a year to pay it off. That might fix the problem of student loan debt. If the colleges and universities would work with businesses in the community, this could be done.” Frugality and thrift were once considered virtues. These virtues need to be recaptured, especially by 18 year olds who do not realize that borrowing today leads to bondage tomorrow. One day these students will want to purchase a home, marry and start a family. Their student loan debt will stand in the way of these natural desires. And while this little bit of writing has used student loan debt as a seed for thought, the truth extends to all debt. Be careful in borrowing money, and avoid doing so if you can. Just as it was true when Proverbs was written ( 900 B.C.), so it remains true today: the borrower is servant to the lender. Avoid unnecessary debt.