Disclosure: This post contains affiliate links.
"Black women have by far the most outstanding student debt after college graduation compared with both white men and white women. The report found African-American women amass an average of $30,400 by college graduation, compared with $22,000 held against white women and $19,500 for Caucasian male students."
Benjamin Fearnow, Newsweek
Yet another article about us black women that's not favorable. On the one hand, I'm very proud of our dedication to getting an education. On the other hand, I wish we would consider how expensive it can be to attain so much education.
After I read the article, I thought of three things: one, something I used to hear adults say when I was growing up: "I'm just working to pay bills." Two, I asked myself, why do we [African American women] sign up for so much financial responsibility? Finally; are we aware of the financial burden that student loans create and how it affects our future and our options?
When I graduated from college in 2010 I was clueless about student loans. Every semester I would go to the financial aid office and sign document after document of student loan agreements. I had no idea what I was signing. I was just thankful that another semester was paid for. I didn't think about financial preparedness before college. I didn't understand how basic finances and budgets worked. I didn't read the fine print on the terms of the student loan repayment upon graduation. I didn't factor in the ROI for my chosen degree field. More importantly, I didn't think about how signing up for a student loan would create one of the biggest financial burdens in my life. I only thought of the short-term.
Life after graduation, "I owe how much?"
Six months after graduation I received my first statement for my student loans. I thought I was going to have a heart attack. Like most recent grads, I didn't land a high paying job right out of school. I actually had to take a part-time HR assistant job while looking for a full-time job. I only made $11.50 per hour my first job right out of college.
Over the years my income grew, but it took time, networking, prayer, writing and re-writing my resume, and adding an Human Resources certification (which seems to mean a lot more to employers than my actual degree) to my credentials.
When people ask me now if I would ever go back to school for my master's degree; I want to laugh in their face. I know what my student loan balance is now, and there's no way I'm adding more to that balance!
What about life after graduation?
I never had a dream job in mind. I never fantasized about running a company. I was that college student that changed her major three times. Sure, I was and still am really good at things, but at the time I didn't know what I wanted. College was the natural next step. But one thing I did know: I wanted to take care of my home and my family. I'd always wanted to be a wife and a mother.
Even at 32 years old I'm still afraid to say that out loud. Most of my peers are "hustlers," "making boss moves," and "gettin' to the money." Meanwhile, I just want to be a wife and a mother.
But having a saddling debt like student loans complicates this a lot! I'm not expecting for my one-day-husband to have to come in and not only pay our household bills, but my student loan debt as well. I mean, don't get me wrong, if he wanted to and was able, then by all means. Realistically, he will also come with his set of financial responsibilities, so we'll probably both be working to eliminate our debts (quickly).
I didn't think about this when I was signing for student loans. I didn't think long-term; I ignored my dream and went along with what I thought I should be doing. Because college is the natural next step right?
Dream deferred, but not forgotten
Unfortunately, my dreams of being a stay-at-home wife and mother will have to wait for a little while. I'm not giving up on my dream, but I do have to create a different plan in order for this to happen.
I saw myself in the statistics of the Newsweek article. My debt portfolio not only includes student loans, but also a car note (that I didn't need). Since I began my debt free journey a year ago, I've been able to pay off 2 credit cards (also a bad habit I picked up on my college campus. I mean really, who pitches credit cards to college students?Predatory lenders, that's who). I'm just now getting to the bigger items on my financial to-do list.
Same goal, new plan
I figured I could either cry and be resentful about the financial trap I'd gotten myself into, or I could wipe my tears and come up with a solution. I chose the latter. Getting out of debt is not a quick fix, but there are things that I realized I could do to speed up the process. Here's what I've been doing:
Moved back in with my parents
I remember the first time I had to move back home after graduation. I was so ashamed. It was supposed to be temporary, but my short-term stay turned into long-term. I remember my dad telling me that I had nothing to be ashamed about and to come up with a plan to get my debts paid off. That was all the motivation I needed to look at living with my parents differently.
Said "no" to extra debt
This would just set me back. I'm not interested in credit cards, personal loans, or anything else that requires my signature and monthly statements. If I can't pay for it with cash, then I don't need it.
Organized my finances
I'm an organizer by nature, so gathering all of my bills together wasn't hard for me. The challenging part was seeing where I was doing all of my frivolous spending. Now, I know all of my due dates, grace periods, interest rates, and balances.
Budget, budget, budget
Putting the numbers on paper was a wake up call for me. Not until I wrote my bills and income on paper could I come up with a plan. I had to give every dollar a purpose. I'm still working on the impulse spending part, even with cash.
Became a Dave Ramsey regular
I'm a huge fan of Dave Ramsey's Financial Peace University. I love road trips because that means I can usually catch up on the podcast episodes. I've been listening to Dave for so long that when his callers ask their question, I can usually give the solution!
Financial Peace University is on my financial goal list. I started the program over a year ago with some friends, but didn't complete it. I'm ready now. This system works best when you have accountability. But even if you don't, you can join Dave's Facebook group while you're going through Financial Peace University.
One thing to know about Dave Ramsey, is that he is VERY anti-student loans, and for good reason. He's tough and may say some things to hurt your feelings, but he means well and wants to help. He is very knowledgeable and I've been amazed to hear how he provides other solutions to students that want to go to college and think a student loan is the only way.
Every person that Dave and his team have helped have a unique story. Some of them have the same story as me, and maybe even you. You don't have to have the same dream that I have to become a stay-at-home wife and mother, but you can still choose financial freedom over being a slave to student loans forever. We don't have to be apart of the statistic.
You can read the article from Newsweek by clicking HERE.