She Strengthens

Breaking Free from Debt: Weighing the Costs of Loan Forgiveness

As I embarked on the new year, I was faced with a daunting reality: $66,000 in student loans, with interest rates ranging from 3.6 to 8.125 percent. Despite earning less than $40,000 annually as a researcher for an environmental non-profit in Austin, Texas, I’ve committed to paying $900 each month towards my debt. However, I could be paying as little as $254 if I enrolled in the Public Service Loan Forgiveness Program. So, why haven’t I taken the plunge?

The Drive to Pay It Off

For me, it’s a matter of personal pride. I’ve taken on this substantial debt, and I want to pay it off in full. It’s not about being noble; it’s simply a driving force within me. Additionally, I have concerns about the program’s stability and potential changes to its rules, which could leave me owing more than I initially borrowed.

The Freedom to Pursue Opportunities

My biggest reason for opting out of the program is the professional freedom it would sacrifice. What if an exciting work opportunity arises that doesn’t meet the program’s requirements? I wouldn’t want to be locked into a career path that no longer serves me. The program’s restrictions could limit my ability to pursue better opportunities, leading to a sense of stagnation and demotivation.

Career Uncertainty and the Future

At 28, I’ve come to realize that staying in the public service sector for a decade isn’t my long-term goal. I know that being honest with oneself about career aspirations is crucial. If you’re certain about your career path, the Public Service Loan Forgiveness Program might be an excellent choice. However, if you’re unsure or have a high debt-to-income ratio, proceed with caution. The future is unpredictable, and it’s challenging to know what we’ll want 10 years from now.

Embracing the Unknown

Fresh out of high school or college, most of us don’t know what we want to do or where we want to work. We take jobs that pay the bills or mildly interest us. As we navigate our careers, we may discover that our dream job isn’t what we expected. That’s why I’ve chosen not to enroll in the program – I don’t have the certainty about my work life that others might have.

Paying the Price for Freedom

Not enrolling in the Public Service Loan Forgiveness Program means I don’t have to commit to a specific career path. I can leverage my current role into a better, different, or higher-paying position elsewhere. Yes, I pay a monthly price for this freedom, but for me, it’s worth it. Paying off my debts will be tough either way – I might as well do it on my own terms.