Graduates drowning in debt pool

For many graduates, their student loan payment costs more than a mortgage!

It's difficult enough trying to find a job these days, but imagine searching for work and drowning in tens of thousands of dollars in student loan debt. For many graduates, their student loan payment costs more than a mortgage, which raises the question: Is a higher education worth it? One woman says going to college was the wrong choice for her.

Rachel Rucker says, "I hate the fact that that is a bad choice, but if I hadn't gone to school I wouldn't be in this much debt and I wouldn't have to worry as much as I do about what's going to happen next." Rachel Rucker owes $90,000 in student loans. The 29 year old University of Toledo grad is falling behind. Her loan payments now top $600 a month, more than a third of what she earns a month as a caregiver. She's out of forbearances and on the verge of default.

At least six times a day, private lenders call demanding money she doesn't have. "It's to the point where I can't even talk to them because it's like talking to a wall. They don't care, they won't listen," says Rucker.

Rucker is one of the millions of Americans who is underemployed. She holds a Masters in Sociology, but can't find a good paying job in her field of study. Rucker blames herself for going into so much debt with a combination of federal and private loans.

"My dad was a truck driver, my mom is disabled. If I wanted to go to college that was all fine and good, but I had to find my own way, and unfortunately my only way was through student loans. And you had to sign all this stuff and you don't really think about it. You're like, I know this is going to be my way to a better life, at the time. So I sign all the forms and take all the loans and here I am 10 years later, $90,000 in debt and working for $9 an hour and there's nothing I can do," explains Rucker.

Certified financial planner Chris Cooper says, unlike most other debt, student loans, by federal law, are virtually impossible to discharge through bankruptcy. He says, "You default on a student loan, we don't come and repossess your college degree. You still keep your degree. If you default on your car loan, we come take your car. You default on your house, we foreclose on your house. So this is unsecure debt."

Cooper says collection agencies can collect on student loan debt by garnishing wages or even social security benefits. Rucker says, "I wish I could get a second chance, but for people like me there is no second chance."

Rucker isn't alone. Last year, approximately two-thirds of 4-year undergrad students who earned a Bachelor's degree graduated with some debt, according to a financial aid website. The average debt was more than $23,000. That's a 5-percent a year increase in average debt since the 2003-2004 school year. People with graduate or professional degrees range from $30,000 to $120,000.

Cooper says high school students and their parents need to plan ahead to protect themselves from student loan nightmares. He says, "First, this is you've got to figure out what you can afford to pay. If you're not able to pay $10,000 a year, you can't afford to go to a state university."

Cooper says enroll in a two-year community college, like Owens Community College. Also, remember to apply for grants and scholarships. Working a job while in college is a must, too.

As for Rucker, she's hoping help is on the way. She joined a Facebook page called "Forgive Student Loans to Stimulate the Economy". Rucker says, "They're bailing out all of these banks. There's relief for you if you're behind on your mortgage. It's like, where's my relief?"

If you're drowning in student loan debt, here are a few of your options: You can try to re-finance by consolidating the loans. There are also loan deferment and forgiveness programs available where a borrower's loans can be pushed back or paid off in exchange for volunteer work, military service, or public service.

For more information, go to the financial aid website - finaid.org.

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