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How a teacher amassed more than $400,000 in student loans

December 3, 2015 at 8:00 a.m. EST
(iStock photo)

Some folks don’t believe there is a student loan crisis.

I’m not one of those people.

Yes, when you look at the numbers, on average college graduates have about $30,000 in student loans. But there are a lot of people who fall far outside that range – very far.

Case in point: “Liz Kelley, a Missouri high school teacher and mother of four who made a series of unremarkable decisions about college and borrowing. She now owes the federal government $410,000, and counting,” the New York Times’s Kevin Carey wrote recently. “The accumulated interest was more than twice the original principal.”

Carey adds: “Kelley’s circumstances are not unique. Of the 43.3 million borrowers with outstanding federal student loans, 1.8 percent, or 779,000 people, owe $150,000 or more. And 346,000 owe more than $200,000.”

Clearly Kelly made some bad decisions. Yet, despite her past debts, the loans kept being approved. This is an issue that will continue to blow up and may soon rival the housing crisis that helped push us into a recession.

Yes, Virginia, there is a Santa Claus: It’s me

If you’ve never read the editorial that answered a little girl’s question about the existence of Santa, you must. As the 1896 New York Sun editorial read: “Yes, Virginia, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy . . . No Santa Claus! Thank God! He lives and lives forever. A thousand years from now, Virginia, nay 10 times 10,000 years from now, he will continue to make glad the heart of childhood.”

I still believe in the spirit of Santa. But my children, I’m sad to say, have long given up on that magical time. Now they just declare what they want for Christmas. It’s become more like signing up for a gift registry.

So what are parents to do when their children ask for items that far exceed their total holiday budget? In a recent column, I passed along six tips to negotiate your children’s holiday list.

My list came about after my 15-year-old daughter asked for a $400 “hoverboard.” Needless to say, the answer was: “Absolutely not!”

Color of Money Question of the Week

What’s the most outrageous thing your kid has asked for as a holiday gift, and how did you handle the request? Send your comments to colorofmoney@washpost.com. Please include your name, city and state. In the subject line, put “Yes, Virginia, there is a Santa Claus: It’s Me.”

Thank You

Recently, many of you participated in a reader survey about this online newsletter. Thank you very much for your input and comments, which were very thoughtful. Clearly many of you find the newsletter useful and in fact asked for more. Here’s what some of you said you liked:

— Information on how people are dealing with their income, savings and large expenses.

— Stories about how people get into financial trouble.

— That in addition to issues of handling money and achieving financial security, the newsletter often discusses how money influences other aspects of people’s lives.

— You like that I ask your opinion about personal finance issues through The Color of Money Question of the Week.

— You like when I respond to current events that affect personal finance.

Here are some changes some of you would like to see:

— You want even more content on saving and building credit for millennials, as well as preparing for home ownership.

— You’d like even more information on retirement issues.

— You want links to my weekly columns.

I just wanted you to know that I heard you and that, although it appears you like things as is, I’ll be introducing some new features. I continue to be interested in your feedback. So if you have any suggestions, please send them to colorofmoney@washpost.com.

Live Chat Today
It’s just you and me today. I’ll be live at noon (ET) today. Join me for a conversation about your money. Here’s the link to the discussion.

The Color of Money

Here are my columns for the past week:

All is merry and bright — until it’s time to shop for the teens at Christmas

Testimonies of conquering debt

My favorite Post business stories this week

Here are some stories I think you should read from this past week:

Seven money moves to make before the end of the year, by Jonnelle Marte

Young white people are losing their faith in the American Dream, by Jim Tankersley and Scott Clement

Readers may write to Michelle Singletary at The Washington Post, 1150 15th St. NW, Washington, D.C., 20071, or michelle.singletary@washpost.com. Personal responses may not be possible, and comments or questions may be used in a future column, with the writer’s name, unless otherwise requested. To read previous Color of Money columns, go to washingtonpost.com/business.