The real story of seminary debt

Jun 18, 2009 by Daniel Ross-Jones

An open letter to judicatory heads, seminary financial aid administrators, and all those connected to faith-based leadership.

When I graduate from seminary in 2011, I may have a cumulative $97,300 (1)  in student loan debt.  Based on an extended 30-year repayment plan, an average 6.80% interest rate and zero loan fees, my monthly payment will be $634.32 and amount to $131,058.98 in interest payments over those 360 payments.  In order to afford that monthly payment, according to federal financial aid guidelines, I should earn an annual salary of at least $76,118.40. (2)

As a Student In Care of the Southeast Wisconsin Association, should I graduate and secure a call in an “average” Wisconsin Conference congregation paying moderate guidelines, I can expect a salary of $33,039 (3), or  $43,079.40 less than the recommended salary for my debt load, representing a 56% reduction. (4)

I grew up with a commitment to the church and have felt God’s call to ministry tugging on me throughout my life.  Despite facing rejection from the church in the past, I continue forward in faith that God will provide.  I find myself today receiving affirmation of my strong candidacy for ordained ministry: a pastoral identity, experience as professional communication staff in a middle judicatory office, a commitment to community-based ministry, a unique perspective from my generational location.  I received my undergraduate degree from a church-related institution, and am building up my resume in seminary through two distinctive international experiences.

Yet as I look at the hard numbers, I feel I am forced up against a wall facing another round of rejection from the church in lack of financial support.  Due to budget constraints at my school, McCormick Theological Seminary, my individual financial aid package was reduced from covering 88% of tuition to 55% for 2009-10.  I must now take out an additional $5,000 in student loans to cover the shortfall, pushing my debt even higher.

Besides tuition, there are myriad other costs related to theological education: books, transportation, insurance, housing, food, communication, photocopies, etc.  I changed my permanent residency to Illinois in order to qualify for government assistance in the form of food stamps, which has helped my bottom line each month somewhat.  I work three jobs just to try and make ends meet, yet I still rely heavily on student loan money to cover housing and part of my insurance costs. (5)

I have sought out and applied for a number of grants and scholarships, including from our United Church of Christ National Offices, and either have not qualified for or been rejected from each and every one.  I gratefully received a $500 stipend from the Association last year, along with $400 from my congregation (Plymouth, Milwaukee.)  I appreciate the generosity of McCormick donors for providing a substantial portion of my education costs, yet as my loan balance inches closer and closer to the $100,000 mark, I become more apprehensive and concerned.  Where is the church supporting me?

I ask not for a golden parachute, but as we as a church look at our future, we need to look closely at our future leadership.  How we invest in our leadership, the requirements we establish for education, and the support we offer directly relates to how well we can attract and retain highly-skilled, motivated, and qualified individuals for our pulpits and ministries.  Even more, it demonstrates our commitment to a Christ-like labor justice.

Notes: (1) Based on current financial trends; includes $23,000 in private loans from undergraduate education, $14,300 in subsidized and unsubsidized Stafford loans from undergraduate education, and up to $60,000 in subsidized and unsubsidized Stafford loans from seminary. (2)  See financial aid calculator at http://www.finaid.org/calculators/loanpayments.phtml  (3) For comparison’s sake, my first professional job following college, which required only bachelor’s-level education and was professional staff within the church structure, started at $31,250 in 2006.  Based on real 2008 dollars, the UCC salary is actually less than my 2006 salary adjusted for inflation: $33,039 versus $33,345.75.  (4) According to the US Census Bureau, the average salary for those with master’s degrees is $62,300.  (5) Average monthly expenditures of $1,435 versus income of $650.  Loan transfers to balance average $785.

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