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American College Students: In Debt, Distracted, And Doomed

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College Classroom Distracted With Macs

Being a teacher and instructor in college is more challenging than ever. Nervous eyes take glances at iPhones, quickly minimize Facebook apps, and craft rapid text messages. Students are unbridled in their distraction. They look uncomfortable sitting still.

As a college instructor for about 4 years, I’ve become increasingly aware of fellow educators expressing frustration over “lazy” students that multitask. Some educators ban smartphones and iPads during classes. Others call out students that text in class, and ridicule them in front of peers — aiming towards social conformity.

Unfortunately, technology is serving as a scapegoat for something worse. Teachers want to limit these technological forms of distraction to heighten learning for everyone, but this classroom management strategy misses a fundamental problem. Today’s students aredistracted, but their attention problem results from atmospheric student loan debt and poverty.

The American Dream and business of higher education

Built in to our ailing economy and concrete erections is a fundamental dream: hope for a better life. It’s why many emigrate here.

While achieving that success is attained through various methods, college still serves as the number one predictor of middle class life. High school graduates make a median salary of $651. By attaining a bachelor’s degree or higher, individuals make a median salary of $1,108.

BLS Educational Attainment Statistics

For decades, the message has universally been towards greater higher educational attainment. Generations of students, employees, employers have followed this rule — requiring college educations and encouraging people to get at least a bachelor’s degree. Now, about 32% of Americans have college degrees.

Guidance counselors ask high school and college-aged students to envision anything they want to accomplish. Fundamentally, they ask, “What do you desire?” and “What would you like to do if money were no object?”

But money is an object, and we are controlled by its properties — through empowerment or restriction. These questions of freedom tease students with a reality that doesn’t exist.

Student loans restrict, constrict, and destroy choice

Many will graduate with nauseating student loan debt. Heck, there’s $1.2 trillion right now! For class of 2013 college graduates, the average student loan debt was nearly $30,000. With that amount of debt and interest rates that vary from 3.86% to 7.21%, today’s graduates don’t have the freedom that’s espoused and propagated by higher education and mainstream media.

The problem gets compounded as “student tuition now outweighs state funding at public colleges.” Now, state taxes and revenue sources are contributing to even less of the total cost for students. This all flies in the face of socialistic policies in many European countries that have highly progressive, free (tax-supported) higher education.

Americans place the burden on students as young as 17 to make educated decisions that could affect the rest of their lives. Faltering in payments and failing to swiftly pay off the debt can lead to forbearance, default, skyrocketing interest rates on credit cards, and more. Credit scores and future livelihood are at risk.

Educating the desperate, sleep-deprived, and in debt

The interest is already ticking for many before graduation. Students can feel eager to get a job, get paid, and pay off debt. But even before they graduate, they must ask themselves some serious questions:

  • Should I work during college?
  • Should I take more than a normal credit load each semester to finish faster?
  • Should I skip study abroad opportunities that cost more and may extend my time?

Previous generations had the incredible luxury of minuscule tuition rates. Between 1978 and 2013, college tuition and fees grew by an overwhelming 1,225%. Simply put, college cannot be paid for with summer jobs and temporary work.

To the financially disenfranchised, student loans fill the gap for access. But there are still students that work during college. I had two jobs while also a full-time student, and there are many like me.

Then, there are students with disabilities, children, and veterans of foreign wars (to name a few). They are challenged to keep paying utilities, attain an education, and somehow keep a roof over their children’s heads. Again, student loans often serve as a mediator to accessing education — a temporary source of funding to attain a better income and vocational future. But real dreams can subtly disappear from view as financial aid bills take precedent.

Student loans magically appear, as do depressed dreams

Like many of my readers, I’ve worked hard to turn around my financial future. When I was in debt, I felt horrible. I spent money without concern and bought things I couldn’t afford. My debt was the illusion of success.

When I finally stopped to breathe in May 2013, I realized I had dug a hole nearly $40,000 deep. I was embarrassed with what I had done, and who I’d become. I wondered what I could do to reverse this dangerous course. Trust me when I say this is a common problem for many students.

Financial aid usually was deposited into negative balances at universities and then extra amounts were distributed to the individual student’s bank account. Suddenly, bank accounts were flush with thousands of dollars — budgets seemed irrelevant.

Everyone from the in debt to the creditors to general public confuses these loan instruments for real cash. Yes, you can spend student loans however you see fit, but the consequences are punishing. Every dollar is taxed by the current loan interest rate, and is a dollar in the wrong direction: towards poverty.

The problem of poverty in college-age students

Unlike the clarion calls that suggest America is number one, we seem to have created a master plan for educational failure. Research suggests that “poverty, itself, hurts our ability to make decisions about school, finances, and life, imposing a mental burden similar to losing 13 IQ points.”

By saddling our future graduates with nearly $30,000 in average student loan debt and a future of near poverty for many, we are hurting their ability to learn in the process. Lower-income and impoverished populations constantly report lower amounts of sleep, vocational uncertainty, higher stress, and show evidence of hindered decision-making capabilities.

These are the students of today. They are trying to succeed in a cultural landscape that begged them to get educated, punished them for getting that college degree with years of debt payments, and then limited their employment options.

As the dreams fade due to financial concerns, anxiety and distractedness likely increase. The dream of “What’s your purpose?” can quickly be replaced with “Who will hire me?”

We want bright, capable graduates, but we “victim blame” them instead

America is eager to have the best workforce in the world. We are a nation that aims to be a beacon of hope and role model to developing states. And yet, we are breeding and cultivating some of the most in debt, distracted, and impoverished students.

It’s not in the interest of this country, the world, and future progeny to continue this wicked cycle of educational attainment and poverty. It’s not in the interest of creating a bright, educated populace to have them cowering in poverty for doing so. It’s not in the interest of America to impair decision making in finances and education in the process.

As teachers express frustration for their distracted students, they need to fundamentally understand the complex, systemic interplay of student loan debt. This financial instrument is inherently complex and can psychologically impair the most capable students. They might not be able to pay attention because they’re burdened by a future of poverty, student loan debt, and restricted opportunities.

Something needs to change. This system isn’t sustainable. Fortunately, a small light of hope might be on the horizon.

Post by The White House.

President Barack Obama recently announced a massive initiative to empower those from diverse financial backgrounds to receive a “free” education. His plan includes funding community college educations for those working part-time and maintaining certain educational requirements. Over the coming months this will be hotly contested and debated. But this is the first step, in what needs to be many, for those in need of an education that’s truly accessible and affordable.

Students cannot continue to shoulder most of the burden. There are powerful inequalities in income and wealth — educational opportunities shouldn’t be one of them. If we can muster the courage and wherewithal to increase taxes towards education, we may see what America is truly made of.

How Income Inequality Created The Vilest Empathy Gap

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Mansion The New Rich Middle Class War
Photo: jorge lascar/flickr

Trickle-down economics worked — for the wealthy

Over the last few decades, incomes have become disproportionately unequal. Large amounts of wealth are hoarded by the 1%, with trickle-down economics failing to provide shared gains we were promised. The average employee makes a small fraction of their executive counterparts.

We know America has terrible income and oligarchic-level wealth inequities. We know that Citizen’s United and other lobbying efforts make the wealthier voices louder.

As the rich get richer and poor get poorer (or stay poor), a rigidity formed. Lower income populations largely stay in lower income towns, jobs, and levels of education. Meanwhile, higher-income populations largely stay in gated neighborhoods, choose what education options are available via economic and geographic means, and enter higher-income vocational networks (i.e., “Hey, your dad helped me get this job!”).

But honestly, we already knew this information. What we fail to grasp is how income inequality shapes us psychologically — the wealthy and impoverished, alike. This level of economic stratification is decades in the making, but we are just beginning to see how this affects well-being and treatment of others. With huge differences in wealth and declining social-class mobility, an income-empathy gap has developed.

Income and wealthy inequality led to an empathy gap

Empathy is defined as the “ability to understand and share the feelings of another.” This feeling can occur with pets, family members, and even fictional characters from favorite novels. Empathy is built, maintained, and formed by our experiences in life. These feelings motivate us to volunteer at soup kitchens, donate to charities, and serve each other. The least empathic among us are traditionally called violent and/or antisocial, as they do not exhibit or understand the pain they cause to another (i.e., terrorists).

As incomes diverged and wealth generation stagnated for lower-income populations, this income-empathy gap widened. People in higher incomes now struggle to empathize and provide for lower-income groups. Propagated on every medium, statements by the fortunate few and privileged sound like this:

Poor people are poor because:

  • “…they buy iPhones and eat out too much.”
  • “…have too many children.”
  • “…make terrible life choices.”
  • “…they are lazy.”

Trust me, the list goes on, but it’s the same mythical vitriol — over and over again. I needn’t perpetuate and propagate these economic mad libs any further. While some may be lazy, frequent iPhone buyers, these messages typecast and discriminate — they’re only used to harm. The voices are judgmental and painful to those in lower-income populations. They’re pejorative and denigrating, and exemplify a true lack of empathy for someone suffering economically.

Poverty shaming doesn’t solve the problem

We know that negative voices can harm others, and yet we keep doing it. For instance, individuals with obesity and weight concerns frequently hear similar messages, which are fail to provide empathy:

  • “Lose the weight fatty!”
  • “Have you thought about putting down the Cokes?!”
  • “You’re so fat!”
  • “Thought about going on a diet any time soon?!”

The research suggests that when you fat shame, individuals don’t suddenly lose weight. In fact, they may gain more. Potentially, income and wealth shaming may do the same thing; thus, making it more difficult for an economically disenfranchised individual from making better choices.

Okay, so shaming doesn’t work, and yet privileged people are using these same tactics with lower-income populations. Why then must a well-off person denigrate, disable, hurt, harm, and verbally accost another? What motivates someone to yell flagrant economic “advice” to someone already struggling to make ends meet? How could they actually help another in need?

Unfortunately, these answers all trace back to the income-empathy gap. After decades of growing social-class stratification, income inequality, and wealth gaps, we are a country in need. But ironically we don’t need more wealth. Instead, America needs more empathy.

To steal and modify a line from Uncle Ben of Spiderman, “With great wealth comes great responsibility.” The economically well-off and privileged have a tremendous opportunity to help those disenfranchised — even beyond charitable giving. It starts with being able to reach out your hand to support another.

How to truly help impoverished and disenfranchised

If you’re wealthy, you may be upset that there are homeless people sitting outside your favorite restaurant. Just know that yelling at that individual to “get a job” won’t ever help as much as providing tax revenue for mental health services, job training and placement offices, and drug and alcohol treatment centers. Just know that typecasting a “ghetto” or “lower-income neighborhood” as a bunch of hoodlums will never help as much as serving that community’s churches, food banks, and schools.

Potentially (and hopefully), if our income-empathy gap closes, so to will the income and wealth gaps. We have a terrific opportunity to change the status quo and shed these antiquated ideals for something better.

We live in a great, prosperous nation that was created for us all — the present person and future immigrant. By closing these gaps, we will all benefit.

Should You Donate While In Debt?

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Colorado State University Endowment Report Donate

I started fundraising and creating an endowment for suicide prevention at Colorado State University in 2010-11. Before I graduated and went to my doctoral program in Iowa, the fund was permanently endowed — reaching $25,000 in about a year. Last week I received my annual “Endowment Report,” which provides the earnings, contributions, and total value of the fund.

As I opened the report, it was hard to stay standing. Today, about 3-4 years since the founding, the scholarship has nearly $34,000 in funds! When the scholarship reaches about $50,000 in savings, it should be able to pay out multiple scholarships each year — or one large check. Ultimately, this can go into the pocket of a college student in need, who hopes to make a difference in the field of mental health.

But back in college, I only had a few hundred dollars in my name. When I got the idea to start a scholarship, I donated nearly everything I could to help seed the fund. I was passionate beyond belief and this cause was everything to me. I remember looking at my bank account, wondering how much more I could give without going broke. It was a delicate financial time, but I had money. And that’s an important point.

When I entered graduate school, I took out massive amounts of student loans, was ignorant about budgeting for the semesters, and irresponsible in spending. Between car, credit, and student loans, I amassed about $40,000 of debt in two years. Throughout this period, I never stopped giving to charity.

Each year, I spent anywhere from $200-500 — small sums in the grand scheme of things — in donations. I kept giving and giving — even when I had nothing. Zilch, nada, zero. Loans were the only thing keeping me afloat.

Even worse, I began to feel the pull of credit debt. This is the particularly nasty kind — an undertow that’ll sweep you out before you know it. With thousands in credit debt, I started engaging in credit balance transfers. These are financial shell games that you can play with yourself and credit companies. You open a new account that provides a 0% balance transfer, and then pay a little fee. Usually, that company provides 0% interest in those funds for about a year. A great deal, if it weren’t for the fact that my spending never stopped.

My spending was out of control and that included charitable spending. I hate writing that line. I hate the idea of cutting back gifts to charity. And I certainly hate the advice I must give today.

I need you to be ruthlessly defensive of your finances when in debt. I need you to ignore your desire to help others, so that you can help yourself. I need you to consider a future where you can help others even more, when you have the savings available.

To those in debt today, you need to put the mask on yourself first — before helping others. Now you may ask, “Why would I do that? Generosity is exceptionally important to me!” In response, I’d say, “I can relate to that feeling. I have given every year of my adult life to charities — in and out of debt.” But it’s time to change our perspective to charitable giving while in debt.

See, when you spend beyond your budget and give to charities when in debt, you’re actually writing a fat check to banks. Those that retain and house your loans — from the federal government to private corporations — receive their own donations when you make this financial mistake. The interest on loans given to you allows banks to realize ever increasing profits and earnings. Worse, it forces you into debt longer than you need be, and prevents you from being able to give more at a later date.

It’s with a pained heart that I must suggest that you stop giving until you’re back in the green (or black). I don’t want banks to make another dime off you, and I’m sure you don’t either. So let’s make a pact to stop giving until we’re done with debt. Then, and only then, let’s consider how we can best help those in need.

Special shoutout to Ben and Stefanie at The Broke and Beautiful Life for an awesome article that inspired this!

Stop Dehumanizing The Poor, Homeless

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Anti-Homeless Spikes Hostile Architecture Photo
This is an anti-homeless spike in London, England.

The last couple weeks I’ve suffered from intense writer’s block. My mind has been focused on something more important than this site (sorry, frequent readers!): graduate school. Part of my role as a doctoral student requires gaining experience counseling others. This year I’ve acquired a spot at the local homeless shelter. It’s forever changed my understanding of homelessness and the financial concerns/distress they face.

Prior to working at a homeless shelter, my perspective was naive and simple. Generally, I felt for them and wondered how I could most help. Whenever I spoke with friends, I talked about how we should help people like this. Sometimes I gave pocket change or a cup of coffee to someone on these streets. But despite a couple moments in high school as a soup kitchen volunteer, I had never taken the time to serve/help the most vulnerable in America. That bothered me.

I’ve been at the homeless shelter for about a month now. The experience is different every day, and because it’s related to the practice of counseling psychology, I can’t say much about it due to confidentiality. What I can speak to is that the people I’ve met smashed my preconceived notions and gave me a framework for understanding how someone gets there.

This great country heralds a flawed understanding of success and path to achievement. Basically, we oversimplify the rules of society and deliver a soundbyte to a highly complex idea: work hard and you’ll succeed. This is a disservice to everyone; the fortunate and suffering, alike.

We have resources in this country that help young adults, but they don’t guarantee success. The world needs to receive this message — not only our country. This meritocracy claim is flawed. The importance and reliance on hard work, self-motivation, and personal responsibility are beautiful aspirations, but they don’t adequately account for the many variables that attack individuals’ abilities.

Trust me. There are cracks in society, and people fall through them. I’ve seen it in the flesh. Medical bills from horrific accidents can pile up, leaving someone unable to work or transport themselves. The financial burdens can quickly engulf any hope for personal dreams. When I ask most people what they’d like to do if they could choose something, most answer that they just want a decent job — that pays the bills. That’s all.

See, the American dream is dead for many in this disenfranchised group. They’ve been kicked around from home to home, job to job, bill to bill, with little support. When I ask this privileged question about dream vocations, they can’t answer. It hurts to hear, but I can empathize with how they got there.

Hard work, self-motivation, and personal responsibility don’t account for death, abuse, domestic violence, psychological illness, and disabilities (to name a few). Each of these unaccounted for variables are swept under the rug, and personal finance websites often miss this target population entirely. Hell, most homeless people have severely restricted access to computers. Many need to go to public libraries to access the Internet — and only for short periods of time. Moreover, I can’t imagine many of them venturing on to personal finance websites because their problems are more fundamental.

Maslow’s hierarchy of needs was introduced in 1943. The pyramidal structure postulated that individuals move through a process of needs, ultimately getting to “self-actualization.” If all your needs were met, you could feel secure, safe, and self-confident. Unfortunately for the most vulnerable, creativity, critical thinking, and problem solving skills are reserved for states in the highest level of the hierarchy. When basic needs such as food and shelter are of concern — worrying about where the next meal comes from — it can be challenging to imagine personal finance questions or plan for that dream job. Despite the psychological understanding and history for the hierarchy, society largely ignores it.

Boasting on and on about complex ideals in American society, we can become inured and desensitized to the struggles of these people. I’m a firm believer that we naturally want to help others. But with homeless people, we seem to make exceptions. For instance, I’ve heard many say, “I would donate or give change, but they’ll probably just buy drugs and alcohol.” I’ve seen parents squeeze their children tighter, as they pass a homeless man. Most people that see a sign and cup pass without glancing — purposely avoiding eye contact. Society allows this dehumanization. That’s considered normal and okay. Who else in society can be so easily cast aside?

With psychological dissatisfaction directed towards the most vulnerable, society can sometimes get creatively disturbing. For instance, The Guardian recently profiled a horrific rise in anti-homeless architecture:

“…stainless steel ‘anti-homeless’ spikes…appeared outside a London apartment block recently, the benches are part of a recent generation of urban architecture designed to influence public behaviour, known as ‘hostile architecture’.”

That simple quote doesn’t do justice for the medieval constructions. From silver daggers that prevent curb-sitting to park benches with added breaks to prevent laying down, this design destroys comfort for those with nowhere else to go.

Today, I’m here to say that it’s not okay that we tell people, “You get what you deserve.” We need to deconstruct these faults and create an inclusive, collective, supportive society. It hurts everyone when we demonize and destroy the most vulnerable. In fact, it’s cheaper to give homeless people shelter, food, health care, and job training, instead of doing nothing.

As an avid writer and reader of personal finance blogs, we have a ways to go before we meet this population’s needs. How can you make a difference?

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