Student Loans – Change is on the Horizon

© 2017 Hamza Butt, Flickr | CC-BY | via Wylio

The amount of educational debt among emerging adults continues to increase.  In 2016, the average among college graduates was over $37k.  About 44 million Americans hold about 1.34 trillion dollars in student loan debt.  This amount of debt as a young adult can be overwhelming, and change is needed to our educational system, and how college is financed.

Millions of student loans could be headed for big shakeup

As Courtney Minor began a master’s program in vocal performance, she made sure to heed some well-known advice: Stick to federal government student loans. 

In completing the two-year program at Longy School of Music of Bard College in Boston in 2009, Minor racked up $60,000 in debt using six different loans, which required her to pay a total of $800 a month for 10 years following her graduation.

Read the full article here.

Here are some of the changes discussed:

  • Adjusted Loan Forgiveness
  • Employer Incentives to Assist in Debt Payments
  • Additional Refinance options
  • Eliminate PLUS loans

While no one really knows what the future holds (since many of these changes are based on our political system), the church should speak regularly about the danger of debt which is mentioned regularly in scripture.

Related Articles:


Dr. G. David Boyd is the Managing Director of EA Resources, a non-profit designed to equip parents and communities to minister to the needs of emerging adults.

A Great Way to Eliminate Your College Debt.

Chilean artist steals and destroys $500 million worth of student debt papers.

actor burns student debt

Here’s one inventive way to deal with the student debt problem. Late last week, Chilean police arrived at Santiago’s Centro Cultural Gabriela Mistral and removed a white bin of gray ash — allegedly all that remained of $500 million worth of student debt notes.

Here is the Link to the Article in the Washington Post.

Here is a Link to the Video!  The video went viral, but not here in America.  It is not in English, and not very exciting.

If you want to read some resources to really help you eliminate educational debt, here are a few links.

Tales of Four College Students

Debt Scams – Don’t Get Fooled

This Millennial paid off $23k in college debt in 10 months.

Financial Literacy



College Students and Credit Cards – Some Statistics

This article attempts to give an overview of student credit card use by presenting some statistics taken from Sallie Mae’s National Study of Usage Rates and Trends of Undergraduate Student Credit Card Use released in April 2009.   

Click Here to Read the Full Article!

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Young Adult Unemployment – Does your church community care?

Earlier this week, I posted how an article that shared a Millennial’s journey through unemployment.

Emerging adults who are unemployed (or underemployed) will not break down the door to your church office asking for help.  They will not demand that the church do anything for them at all.  You might not even know they [unemployed emerging adults] exist.

They do exist.  If your church wants to minister to Emerging adults, then we must seek ways to make a difference in their lives.

Here is a chart recently released by the Economic Policy Institute.

Here are some highlights from the article.

  • …young workers always experience disproportionate increases in unemployment during periods of labor market weakness…
  • Unemployment and underemployment rates among young graduates are improving but remain substantially higher than before the recession began.
  • [These high rates of unemployment]… stems from weak demand for goods and services, which makes itunnecessary for employers to significantly ramp up hiring.
  • Wages of young college and high school graduates are performing poorly—and are substantially lower today than in 2000. The real (inflation-adjusted) wages of young high school graduates are 5.5 percent lower today than in 2000, and the wages of young college graduates are 2.5 percent lower.
  • The cost of higher education has grown far more rapidly than median family income, leaving students with little choice but to take out loans which, upon graduating into a labor market with limited job opportunities, they may not have the funds to repay.
  • Graduating in a weak economy has long-lasting economic consequences. Economic research suggests that for the next 10 to 15 years, those in the Class of 2015 will likely earn less than if they had graduated when job opportunities were plentiful.

May God lead your community to be a place that understands and is willing to do what it takes to minister to Emerging adults.

Ddavid in hat - blackr. G. David Boyd is the Founder and Managing Director of EA Resources.

Average Educational Debt and Inflation

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I found this chart on the Wall Street Journal, and wanted to share it with my readers.  While the economy has improved over the last three years, the gap between earnings and educational debt has continued to grow.

It is more crucial than ever for…

As the church, we must seek to minister to people in various stages of life and the challenges they are facing.  May God guide and empower you as you seek to care for the emerging adults in your life.  If I can help, please let me know.

david in hat - blackDr. G. David Boyd is the Founder and Managing Director of EA Resources, a non-profit designed to encourage parents and churches as they seek to minister to emerging adults.



How to Fix your credit after Falling on Hard Times

Scrabble Series Debt from Flickr via Wylio

© 2012 Chris Potter, Flickr | CC-BY | via Wylio

A range of circumstances can damage your credit. Loss of your job, getting behind on various loan payments, and carrying a high balance on your credit card can contribute to bad credit. As you begin the credit repair journey, it’s important to stay positive and to focus on doing it the right way. By having faith and taking control of the matter in a mature and morally responsible way, you can get your credit score back up again.

Ways to Repair Credit After Bankruptcy

Dire circumstances can sometimes force us to file for bankruptcy. After doing so, you must first understand where you stand. Firstly, you should know your credit score, which can be obtained for free once a year from Annual Credit Report. Know that filing for bankruptcy deeply hurts your credit (from 130 to 240 points), so prepare to see a low number. Check for any errors on the report, and notify the credit bureaus if you find any. Credit reporting errors can seriously damage your score.

Not all types of debt can be eliminated in bankruptcy, such as tax debts and student loans. Make a chart of these debts and then highlight those that have high balances or high interest rates.

Once you have a clear picture of what you owe, you need to figure out ways to get your balances lower, as making payments on time and lowering balances is the best way to improve credit. Another option is to open new lines of credit and paying off your balance each month.

Credit Cards from Flickr via Wylio

© 2014 Sean MacEntee, Flickr | CC-BY | via Wylio

Change your financial habits as well. Repent for past mistakes by setting a financial plan for the future and having the willpower to stick to it. Have payment reminders sent to you so you know when money is due. Resist the temptation to spend on things you don’t need. Self-control can help a lot here, as you can put more money in your pocket each month with simple lifestyle changes, such as eating out less, renting movies instead of going to the theater, and carpooling to work. If you can, find extra work by using your networks in the neighborhood, at church, and within your family.

Ways to Repair Credit After Foreclosure

Anything from unemployment and underemployment to overspending can cause foreclosure. Losing your home is emotionally difficult, and sometimes it’s hard to focus on getting back on track.

The first thing you should do is make sure you and your family have a safe and affordable place to live. The monthly payment shouldn’t exceed 28 percent of your monthly income. Understand that you won’t be able to get a mortgage for three to seven years. Stay patient and positive, and work to rebuild your credit during this time.

Address your current financial situation and review all your debts. Plan to pay those with the highest interest rates and balances first. View your credit score, but don’t get too distraught even though it’s probably down anywhere from 85 to 160 points. Faith and the motivation to make positive changes are what you need, not negativity.

Work on ways to cut down on expenses and continue to pay down debt. Put those credit cards away unless you absolutely have to use them. Discipline is what you need right now.

Fixing your credit after falling on hard times takes patience, self-control, and willpower. It’s a long road, but the right blend of faith, lifestyle changes, and careful planning can put you on the bright road to credit recovery.

Jesse Woodhouse is a Team Lead at TopTenReviews. He is a proud husband and father and loves sports, music and the outdoors.

This Millennial Paid Off $23,375 in Student Loans in Just 10 Months

Jordan ArnoldI found a great article to encourage those who are facing student debt.  The average debt load is $29,400 for those who are graduating from college.  This amount of debt may seem staggering, but it can be conquered.

Some highlights from the article that we can all learn:

1.  Debt reduction became a priority.  This student took on a second job in order to help pay down his debt.  What steps can you take?

2.  Picture it.  Imagine the day you pay off your loans.  How will it make you feel?  I graduated from Seminary with $27k in loans, and I still remember the day when my wife and I paid them off.

3.  Take time to celebrate.  What are you going to do in order to celebrate your debt retirement?


Financial Literacy: Why College Is Not The Time To Blow It Off

© 2007 Quazie, Flickr | CC-BY | via Wylio

Your college years generally set the tone for your entire adult life. During this period, the choices you make can either lead to lifelong stability or long years of financial insecurity. By following well-established principles, you can prove yourself an excellent steward of the resources you have been blessed with. While learning the basics of financial literacy is doable for just about anyone, this topic can seem like a tough nut to crack for the uninitiated.

Whether they are enrolled in college or entering adult life and considering their options, millennials enjoy many opportunities to take on debt. Well-intentioned or not, an enormous number of lenders present young adults with various forms of credit. Whether they have graduated or not, millions of young adults leave college life with significant debt levels. Depending on your level of financial literacy throughout this period, accepting lines of credit can cause you to sink or swim in life.

Unfortunately, far too many people are entering their adult lives with little understanding of finances. A 2012 report from the SEC found that the average Wall Street investor don’t understand basic concepts like compound interest and inflation. If this class of people needs to “hit the books” and develop financial literacy, how much more does the average college student need to take responsibility of their own finances?

Despite the unique challenges millennials face, members of this generation can access financial tools that were not available to their parents. Many resources, including personal finance software, calculators, budgeting apps, financial blogs and others offer insight, direction, tips and financial education that helps set you on a path to being financially responsible.

The TopTenReviews College Student Guide explores exactly how financial software can help students live within their means. It enables you to have a full, clear accounting of how you spend. You might be bleeding money in ways that are genuinely surprising. Once you know your problem areas, you can focus on how to improve them and be more efficient at how you spend your money each month.

Some might feel that saving is as simple as it is important, for others it is a difficult concept to keep. When we are prepared, we will not fear. As Joseph in Egypt clearly showed, saving is the cornerstone of wise living. What would have happened to Egypt if Joseph did not save? Even if it feels almost as hard as wringing water from a rock, it is important to set aside a percentage of your monthly income for emergencies. Find the method of saving that will work best for you. Maintaining the right kind of savings habit might cost you a little pain now; however forgetting to save can cost you a world of heartache when you are faced with an unforeseen crisis and a shortage of funds. With the many resources and tools available today, there is plenty of help and guidance to help you improve your understanding and your situation before it gets out of control.

Lessons in financial literacy can hit home powerfully when learned from others who share your Christian ideals and values. Get to know trusted mentors who have faced similar challenges and blazed their own trails towards peace and security. Learn how to be financially responsible and self-sufficient during your college years, and don’t put it off. With God’s help, you’ll discover that becoming financially literate is more than a chore; it is a journey of empowerment and self-discovery.

View Jesse.PNG in slide showJesse Woodhouse is a Team Lead at TopTenReviews. He is a proud husband and father and loves sports, music and the outdoors.

Over Half of College Students do NOT know their College Debt Amount.

I still remember the number – 27,000.

There is no relationship between the number and my age, birthday, or anniversary.  It is not the number of comic books that I own (although, I wish it was).  The number seemed to follow me everywhere I went.  I began to feel a strange kinship with the number.

That number was my student debt total from graduate school.  I predicted the number even before I began my first year, and knew it was coming.  I still remember the day it was paid off.

Debt was a big deal to me, and I was aware of its weight.  Unfortunately, the concept of debt is lost among many students entering college.

I came across this article this week from the Washington Post.  A study was done among first year students about their perceptions of debt.

The study concludes that, “Students who do not have a good idea of their level of borrowing may make expensive mistakes that they will later come to regret.”  I have seen many students take out extra student loans for leisure trips or unnecessary expenses.

The study also states that “They are also likely to be surprised or even fearful when their first loan payments come due, which may impose an emotional burden on borrowers.”

That is an understatement.  The emotional burden of debt exists until the debt is paid.  Proverbs 22:7 states, “Just as the rich rule the poor, so the borrower is servant to the lender.”  Here are some stories from those living with school debt.

Debt is real.  It has consequences for today, and for the future.

We must help emerging adults understand the ramifications of debt, and help them find cost-effective solutions while discovering a vocation.

david in hat - blackDr. G. David Boyd is the Founder and Managing Director of EA Resources.  He has a passion to help emerging adults and equip churches.  He is thankful for his wife Rachel who worked hard to pay off his school loans.