Student debt crisis creates ethical dilemma
Dear Amy: Would it be wrong to ask my mother to use her inheritance from her father (my grandfather) to pay off some of my student loans?
I graduated nine years ago into a terrible job market and I am just now breaking out into a decent, good-paying career.
However, I have barely made a dent on my student loans from being unemployed and underemployed for many years. I am also hard-of-hearing and this contributed to my employment search struggles.
My mom bragged about spending $11,000 on new windows for the house. It was a perfectly valid purchase, but I could not help feeling resentful hearing about it. That amount would have paid off a third of my loans!
Whenever I see my student loan amount, I cry so much. By the time I would be able to make it up the career ladder, the interest will catch up with my salary, keeping me indebted forever.
I only went to college in the first place because my parents influenced me to. I feel shameful seeing my peers with their debts paid off, while I continue to struggle.
What is the right thing to do here?
-- Student loan woes
Dear Loan Woes: There is a valid reason the student loan debt burden is being called a "crisis." You and your colleagues are carrying unprecedented debt, which is taking not years -- but decades -- to pay off. The default rate (which can have extreme personal consequences) is over 10 percent -- and climbing.
Before going to your mother, you should educate yourself and explore any and every opportunity to renegotiate your loan terms. Check studentaid.ed.gov for information on consolidating and repaying federal loans. Studentloanhero.com is a commercial site offering lots of information on how to organize and consolidate, as well as tips to perhaps lower your payments (the company claims to profit only from the various banking "partners" they work with to consolidate and refinance; the site is free to consumers). Always make sure any terms are more favorable to you than your current terms, and read all of the fine print before making any changes.
...continued
