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In our last episode, we addressed the forgiveness of Student Loans through President Biden’s Loan forgiveness program. If you have not listened to that episode, you would be wise to go back and catch the last episode.

Today we will be talking about the Student Loan Crisis as a whole and examining if taking out student loans is worth the cost.

Our episode today will touch on various areas like:

  • The promise of college.
  • The history of student loans.
  • The problem of student loans.
  • A discussion of the movie “Borrowed Future.”
  • Personal introspection with students loans.
  • Stewardship principles to consider before getting student loans.
  • Stewardship principles to pay back student loans.

Our goal in this episode is to not ramble, but to get you some clear and defined points for processing and hopefully some good solid Biblical wisdom pertaining to student loans and if they are worth it. We have recently had many people ask us questions about student loans and the conversations were all over the map from “this is the only way to get an education” to “we need to change our plans immediately and not go into student loan debt!” Today will be a little bit of a round-table discussion.  We asked Tyler, our producer, to join us on this episode partly because of his first-hand knowledge and understanding of student loans.


The Promise of College

Promise #1 – Education aspirations should be able to be reached regardless of income or economic status. This is what student loans are for, to enable everyone to get a degree if they want it. 

Promise #2 – If you get a degree, you will be happier and better paid than those without a degree. In fact, the more education you get, the more your earning potential. You will get a better job, live in a nicer house, drive a newer car, take better vacations, and have a more enjoyable retirement. (

Promise #3 – The College Years are ones that young adults should not miss. They need to experience all the things that they can so that they can be a well rounded adult with great stories and strong relationships. (You know, experiences like drugs, alcohol, unbridled sex, and lots of parties.)


The History of Student Loans

First offered in 1958 in the National Defense Education Act. Goal was to get more of our youths trained in a wide variety of fields so that the US could gain/keep a competitive edge against the USSR (Soviets). The Soviets had just launched the Sputnik Rocket. This demonstrated a clear technological advantage for the Soviets. The US needed to keep up and beat the USSR in the space race if we wanted to survive the “Cold War”. 

Students could only borrow up to $1,000/year

By 1965, new legislation made Student Loans more accessible to students. Sallie Mae (Student Loan Marketing Association) was founded in 1973. The company’s primary business is creating, servicing, and collecting private education loans. Interesting Side Note: On April 30, 2014, Sallie Mae spun off its loan servicing operation and most of its loan portfolio into a separate, publicly traded entity called Navient Corporation. Navient is the largest servicer of federal student loans and acts as a collector on behalf of the Department of Education.


The Problem of Student Loans

Student loan debt has topped $1.5 trillion in recent years, making it the largest type of consumer debt outstanding other than mortgages. The average student loan borrower graduates with nearly $30,000 in debt. (


Stewardship Principles to Consider Before Taking Out Student Loans

  • Consider applying for A LOT of scholarships and any/all grants. You can get THOUSANDS if you are diligent in seeking out and applying for scholarships!
  • Consider working one, two, or more jobs to save up for your college education!  You most likely will not make enough to pay for it out of pocket, but it will be better than taking out MORE student loans and mortgaging your future to an even deeper level!
  • Consider going to a community college to keep your expenses lower. If you need to borrow anything, it will surely be less than a 4-year private university. You can get a comparable degree with much less money spent by not choosing the “name brand” schools!
  • Remember that the borrower is Slave to the Lender (Prov. 22:7) Student loans are not bankrupt-able.
    • Student loans have changed the American dream to just getting to the point of paying off loans. Do you like the idea of being a “slave” to someone”? You will be a financial “slave” to someone if you choose to cover most if not all of your education through student loans!
  • Borrowing money can demonstrate a lack of faith that God will provide.
    • God may have had other ways/means to meet the need. You might miss the blessing of God’s provision.
      • Matthew 6:31-33. “Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. But seek first His kingdom and His righteousness, and all these things will be added to you.”
  • Borrowing money must make economic sense. Starting salary $35k but school debt $100k? Does this make sense?
  • We always mortgage the future when borrowing money. Commit ourselves to hundreds or even thousands of dollars in monthly payments for decades. Mortgage size payments (we are not exaggerating with this!) Some that choose to finance their entire education, and possibly even post under-grad education, they will have monthly payments equal or greater than what one would pay on a home mortgage.


Stewardship Principles for Paying Back Student Loans

  • Pay back your loans. If you get forgiveness, build up cash reserves and pay off high interest credit card debt before allocating to rest of loans. 
  • BUDGET, BUDGET, BUDGET! Make budgeting a way of life. Without knowing what you have coming in, and what your obligations and needs are, you will be living paycheck to paycheck.
  • Make a choice now that you will live on less than you earn. When you do this, choose to pay off debt as quickly as you can. 
  • Don’t let your expanding income cause your lifestyle to bloat while attacking loans. Get aggressive toward paying down your debt!
  • Keep an emergency fund – to prevent future debt when emergencies strike.


Stewardship Application

Pray and seek the Lord about taking out student loans, or how best to make payment on them. Student loans or not, God cares for, loves, and provides for His children! Think about the impact of student loan debt before you sign on the dotted line! Realize that many people are crippled financially today due to heavy student loan debt. Choose to, if you can, to NOT be one of those statistics where a large portion of your future income will be used to pay down what you borrowed to get there (with much interest). Pray again, that the Lord of the harvest will be your great sustainer, and provider whether you have, or are contemplating student loans.

And parents/grandparents, do not get roped into co-signing for a student loan and mortgaging your future if there are some financial hardships from your children/grandchildren.


Next Steps


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