Real New Yorkers: 160K Deep in Student Loan Debt

We’re all about living a financially healthy lifestyle, but no one is perfect and we feel that one of the best ways to get inspired to spend well, save money, and not get so overwhelmed about your financial situation that you go totally haywire is to commiserate with others.  Hence the emergence of a new series where we speak to real New Yorkers about their financial woes and how they’re dealing in a city that doesn’t bode well on the pocket.

Our first interview is with Rachel Kramer Bussel, a Brooklyn based writer and editor, who took on a whopping $160K in student loan debt over 10 years ago.  We spoke to her about how this debt affects her day to day living and future plans of having a child.

What inspired you to go to law school?
I was a poly sci major and I was always interested in law, as opposed to going into politics.  So, I thought I’d go into law school and maybe study constitutional law and be this lawyer/activist type of person.  I was interested in feminism and womens’ right and first amendment stuff at the time, but I was 20 years old.  Now looking back, I’m 33, I didn’t really have a solid grasp on what a lawyer actually does.

How much money do you owe in student loans total?  And how much for just law school?
Well, I don’t know exactly.  I paid off my loans from college which was only like 10-15K, because I got help and I went to school in-state.  For law school, I think the total was $160,000 plus interest.  At one point, I calculated that I was paying $16 a day in interest and that was back in 1999.  So, I don’t know exactly how much interest I’ve paid.  I’m down to 58K — I’ve definitely paid 100K plus interest, but most likely more than that.

I think when you owe that much money, you sort of lose track of what money is.  But I think I value it more now.  Sometimes I feel like, how badly do I really want to do what I do now?  [But] when I look at it now, I’d still rather do it like this, and pay what I pay.  I think for me, part of what sucks, is that I didn’t finish, so I’m paying all this money for a degree that I didn’t get.

I’m not poor, but I’m definitely not doing as well as I would be had I not gone.  [The balance is] better now, but if I’d only been paying the minimum all this time, I’d really be screwed.

How does having this much student loan debt affect your daily lifestyle?
It doesn’t affect my day to day so much.  I don’t live totally frugally — I mean I travel and I just recently joined NYSC.  There was a time, though, when I was just so obsessed with it — I logged onto Sallie Mae every day to check my balances.  I think it affects some of my drive to edit a lot of books because I have to keep working really hard until they’re paid off and in a way, I think that’s good for me because I keep coming up with ideas that will make me money, but also advance my career as a writer.

Has being in debt and living in such an expensive city caused you any major stress or anxiety?
Sometimes.  It depends.  Certain days I’ll just feel really overwhelmed by it — like, wow, I’ve paid 100K and what do I have to show for it? But for the most part, I just wanna keep working towards paying it off, and hopefully then I’ll be able to start saving some money.

And, I don’t know, I try not to let it overwhelm me.  I think if you start thinking like that, it just becomes pointless.  I would definitely advise people who are thinking about grad school to really think about it.   [Taking on debt] was sort of abstract for me “I just signed off for 40K [in loans]“.  I didn’t really have a sense of how much I’d have to work to earn enough to pay it off.  I think it’s hard sometimes in New York, because it can be a hard city to save money.

But sometimes it does make me worry — I’m 33 and I want to have kids.  I feel like if I can’t afford to pay off a student loan, how can I afford to pay for a child?  Hopefully I’ll figure it out in a few years.

Do you think that college advisers and counselors are effectively advising students to take logical career paths?
I don’t know — I don’t even really remember who I met with.  I was very convinced that I wanted to go to law school.  I had graduated college in three years, partly to save money, so in my case, it wasn’t something people pushed me into.  But I do think a lot of people go to grad school because they don’t know what they want to do.  I think it’s a good idea to work and make money until you know what you want to study or do.  And people who have an idea of the real world or working world, are going to bring something to grad school that people just out of college aren’t.

Did you feel pressured to go to a top school like NYU because you thought it would help you in your future career?  And has it?
No, it was just the best school that I got into. It was hard to be so young and studying all the time with all of the distractions that New York has.  I think if I had gone somewhere else, I’d have probably finished.  But as school went on, I felt really out of step with my law school peers — they were very focused and knew what they wanted to do, and I didn’t.  It was a very tough time in my life.

I’ve always thought that high school counselors always overstressed how important attending a top tier school is, and I don’t agree that that will always put you ahead of the game in terms of beating someone out of a job.  What has your experience been with that?
I think it’s becoming increasingly like that.  I could have gone to my state school, Rutgers, and it would have been much cheaper.  But so many of my high school peers were going, and I just felt like it’d be an extension of high school.  I think the idea of top schools are where you need to go are exaggerated, because ultimately it’s what you’re going to do with that.  I think you can go pretty much anywhere, and if you stand out, and make a name for yourself and do well, it won’t matter as much.

How long do you think it’ll take you to completely pay everything off?
I’ve given myself til 2033.  It all depends on if my novel (coming out in 2010) sells well, then it could potentially be sooner.  Once I get under the 20K mark, I’ll feel better.  Now it still feels really daunting.  Sometimes I get too into it, and try to pay too much.  I have to make sure that I don’t go too crazy with it.

I actually declared bankruptcy a few years ago, I had 30K in credit card debt and that felt much more debilitating.  The way credit cards do their fees, if you’re making not much money, you’re really screwed.  I’d try to pay them, and was only paying them interest.  The more I realized I had nothing ot lose by declaring bankruptcy.  It kills all your credit cared debt.  I was able to get small credit limits within a year, which has helped me build my credit back up.  My credit still isn’t great, but otherwise had I not done that, I’d be totally overwhelmed with that and my student loan debt.

Photo credit:  Hilary McHone

The People’s Transportation Program Helps People Ride for Free During the Recession

Oh, MTA, you make it remarkably easy for the collective New York City populace to demise you with much fire. When you aren’t jacking up fares, you’re slashing service. While you’re crying broke, you’re digging massive tunnels for new subway lines. Though we begrudgingly recognize that you do get us to work on time at I would assume is a pretty high clip, we’re fed up with your shenanigans. Read more

Head on Over to Brooklyn’s Prospect Park this Summer for Low Cost Fun

Video Resumes: The Future of Job Searches?

Looking for a new way to show your interviewer or potential employer that you’re a cut above the rest? Thinking about sending in a video resume to prove your point?  Before you press “RECORD” you might want to hear what recruiters and employers really think about the onset of video resumes and how effective they are at landing you that dream job. While there are many different opinions regarding the use of video resumes (especially after many job posting websites such as CareerBuilder have removed these applications from their sites, stating it was because the market was not yet ready for them), most recruiters seem to agree that there are a few issues one should consider before setting up the camcorder.

1.  Make Sure You Know Who’s Watching

One of the principle problems with video resumes is that the identity of the person watching these videos (and whether or not this is the same person who you want to be seeing the video) is often unknown.  According to Jon Mufson, owner of the executive search firm Mufson Associates, Inc. , “once you put your resume out there, especially on job boards, you have little control over where it is being viewed; now, it’s the same with the video resume.” In fact, even if you send your video resume directly to the company, Mufson notes, “you have to consider corporate online tracking and the fact that your video resume may not even be opened up, due to fears of computer viruses.”

Garth A. DeBevoise, Account Director at The Gerard Alexander Consulting Group, also notes the problems that occur when video resumes get into too many hands. “Sometimes a recruiter or job posting site with no conscience  will receive a video resume and send it out to every person they can think of. They are all seeing this same video, and they think ‘this guy is desperate for a job.’” This, in turn, makes employers much less likely to want to hire this person.

2.  Know Your Intended Audience

Although many recruiters foresee numerous issues with the use of video resumes, such as over-marketing, under marketing, and the opportunity to screen out undesirables on the basis of gender, race, or physical attractiveness, there are many positives as well, assuming you know enough about your potential employer and/or his or her company. DeBevoise notes that “depending on the position you’re applying for, using a video resume can be a great way to get your foot in the door, some companies are just more buttoned up than others. For example, if you’re looking for a position with a younger ‘hip’ company, a video resume may be the perfect way to give them that ‘wow’ factor.” Similarly, Andrea Sobo, V.P. of Mufson Associates, Inc. , notes that “a video resume can be a good idea if you are applying to a position on the more creative side”. Additionally, Sobo states that for those looking for positions in fields such as creative marketing it’s important to include “PDF portfolios or links to their personal websites; it’s really helpful to see a copy or sampling of their work”.

3.  Know what to include and what to leave out

If, after all things considered, you do decide to construct a video resume, make sure you are well aware of how you are presenting yourself to your potential employer. As DeBevoise, states “while some employers may think its really creative to have Bush’s ‘The Chemicals Between Us’ playing in the background while you talk about why you are interested in a position in chemical engineering, others may not.” Mufson, in line with DeBevoise, notes that it’s imperatively important to know your audience and “make sure the video resume comes across as clean, from a visual and auditory perspective.” Similarly, Sobo suggests that whether you are sending out a more traditionally formulated resume or a video resume, “keep it as professional as possible.”

After hearing what professional recruiters had to say, it is clear that the most important thing to remember if you are considering using a video resume is “know your audience.”  Lastly, while most recruiters reported seeing video resumes used very rarely (especially for higher level positions), it seems that there still may be some place for them in the world of job searching, provided they are constructed in a creative and professional manner and marketed effectively to a few targeted employers.

But we want to hear from you guys.  Have you ever submitted a video resume?  Would you ever create one?  Do you think it’s a viable alternative to a paper resume or completely unprofessional?  Let us know in the comments section!

The Rise of the Odd Job: How Plan B Can Turn Into Plan A

According to the New York Department of Labor, the total civilian unemployment rate, steadily increasing since May 2008, is, as of May 2009, a dismal 8.2%. In addition to this vast loss of jobs, declining salaries and reductions in health insurance and retirement benefits have made it increasingly difficult for New Yorkers to keep up with the ever rising cost of living in NYC.  Read more

5 Reasons Why You Should Drop Everything and Sign Up for a CSA Right Now

If you’ve been following the site for a while, chances are you’ve heard me preach the merits of the neighborhood CSAs that are popping up all over the city.  Well, if I was excited about it a few months ago when I signed up for my first season of the Ditmas Park CSA, then I’m totally enthralled with it now.

Now, for those of you aren’t totally familiar with the concept of Community Supported Agriculture, here’s the 411:  It’s a pretty new model for farming and food distribution.  The way it works is pretty simple, with a group of local community members getting together and basically pledging to support a local farm, which they then become “shareholders” of.  It’s a less-risky model for the farmer and gives them a closed market of buyers.  The community members, on the other hand, get fresh, locally grown and in-season produce.  Instead of buying produce from a supermarket where you may or may not be eating food that was grown with pesticides, you know exactly where your food is coming from and under what conditions it was grown.

I just got my first share of vegetables today, and I am officially in love with the program.  But before I go off on my pro-CSA speech, here’s a comprehensive list of every single CSA located in the five boroughs.  There are 80 of them.

1.  Fresh, Fresh, Fresh Food.

Anyone’s who’s ever met me knows that I am about the most unlikely chef on the planet.  I have absolutely zero patience for food prep, cooking, and cleanup.  I hate the process and will attempt to validate any reason for eating out whenever possible.  However, after getting a box full of radishes, fava beans, an unruly bunch of lettuce, and honestly, something that looked like a cross between a potato and a parsnip (I’m still not sure what it is, but it looks good), plus a bunch of other veggies, I’m feeling something that I’ve never felt before.  There’s something about having lots of yummy smelling, glistening produce in my fridge that makes me want to whip up something crazy.  Like I did this morning, with an egg, some fresh radishes, and green onions.

[Ed. Note:  The gold trimmed plate was picked up at Housing Works for $1.]

2.  You’ll Meet New Neighbors

I know a decent amount of people in my neighborhood, which has been a first in my six years of living in New York.  In most of my other neighborhoods, I was lucky if I was acquainted with the person across the hall from me.  Now I have a small network of people I can call up at any time to meet up with for a drink at the bar down the street or for a late night coffee and dessert.  But I digress.  Back to the CSA, I met two new neighbors this morning while they divvied up my goods, and I got to chat it up with the farmer (Jorge) who grew my groceries.  Say what you will, but I like being acquainted with the person who grows my food.  It feels safe — especially after watching three documentaries on the food industry this weekend.

3.  You’ll Be Forced to Try Things You’d Have Never Bought on Your Own

I enjoy trying new food, I really do.  But go grocery shopping with me, and I will buy the same crap over and over again.  Hummus?  Check.  Salsa?  Check.  Two boxes of wheat thins?  Check.  I have no problem admitting that my routine is lame.  Anyway, with this pickup I was given a bag of fava beans.  I’ve eaten fava beans before, but throw me in a supermarket with a display of fava beans and I’d never purchase them in a million years.  Why?  They’re foreign to me.  I don’t know off the top of my head how to prepare them or what to serve them with.  But now I have them, and for fear of wasting them, I’ve gotta do something with them.  So, sometime this week, I’ll be visiting www.allrecipes.com to figure out what I can throw together with these things.  Being forced to be adventurous with your food?  Excellent.

4. You Will Save Money.  Period.

Okay, nothing against the Flatbush Food Co-op.  It’s a very nice supermarket with lots of interesting products, but it’s expensive, as are most food co-ops.  After a recent trip there a few weeks ago, buying some turnips, other vegetables, and a few miscellaneous spices, my bill came out to a shocking $40.  Fast forward to today, I was handed a box about the size of a 6-pack of beer full to the brim with around 25 vegetables (not including the bunch of fava beans and a half carton of eggs), which is costing me approximately $16.75/ each week. [I paid $335 up front for approximately 20 weeks of food - depending on how long the season is]

Now when I take my weekly trek to Whole Foods, my shopping list will be seriously slashed and will most likely consist of a bag of spinach pasta (around .99 each), a loaf of 7 grain bread (around $5), a box of rice ($2), a few miscellaneous fruits ($4) and the occasional salad dressing.  This means instead of spending $250 a month on groceries, I’ll be spending on average $135/month.  That’s $1,380 a year in savings!

5. You’re Supporting Agriculture, not Agribusiness

What is agribusiness?  Agribusiness is “is a generic term that refers to the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales” (via Wikipedia).  In layman’s terms, it’s corporate farming.  If you’ve ever seen documentaries like Food Inc., The Future of Food, or even Super Size Me, then you know how harmful the mass production of food can be.  If you’ve never seen these movies, I dare you to watch them and then try to eat a Big Mac.  Like I mentioned earlier, buying your produce from local farms ensures that you’re not eating food that’s been treated with all sorts of pesticides and god knows what other types of chemicals that agribusiness typically treats their food with.

If I said I was writing this from an impartial mindset, I’d be lying.  I absolutely love having fresh food in my diet.  I can’t say for sure yet, but I’m willing to bet that I’ll be seeing improvements in my weight, mood and general health in the coming months.  There have always been benefits to eating fresh and in-season, but with the plethora of CSA options that we have in NYC with the local farms upstate, there have never been so many benefits to joining up with a local program.  CSAs are shattering the idea that it’s costly to eat good, wholesome food, and that’s great news for a nation that has a serious and growing problem with obesity, diabetes and heart disease.  So to sum it up, the food is fresh and delicious, you build new relationships with your neighbors and the farmer who grows your food, you’ll introduce new foods into your diet, you’ll save a crapload of money, and you’re supporting local farms.  Simply put, it’s cheap and it’s healthy.  Do it.

Comedy Central Park: Free on Friday!

Get your dose of free laughs this Friday, June 19, in Central Park with the third annual “Comedy Central Park” show.  The free comedy show will take place at Central Park SummerStage and is headlined by Gabriel Iglesias, with special guest Pablo Francisco. Read more

Free on Thursday: In The Flesh Erotic Reading Series

Tired of the same old bar scene each Thursday night?  We know we are.  That’s why we never hesitate to jump on the more novel events the city has to offer.  And if they’re free?  Well, then, that just makes it all the more sweeter. “In The Flesh”, a monthly reading series of erotica hosted and curated by Rachel Kramer Brussel (Editor of Glamour Girls, First-Timers, The Mile High Club), is happening this Thursday and will feature readings from authors and writers around the NYC area. Read more

Thrive on Behavioral Budgeting, Financial Literacy and the Future of Financial Management – Part 1

We recently sat down with Thrive (a free online personal finance manager) co-founder, Avi Karnani and Lead Scientist, Matt Wallaert to talk about Thrive’s offering to the rapidly evolving world of personal finance.  We met up in their office in Chinatown to discuss their recent acquirement, current work in financial literacy, and their competition with one of the most recognized financial management site, Mint.com.  Since we covered a lot of ground, we’re going to publish this interview in two parts:  the first of which is below.  [Part 2 is here] Read more

Free Subscription to Time Out New York

Don’t ask us how or why, but it looks like Time Out NY is giving away free 2 year subscriptions courtesy of the Tribeca Film Festival.  We weren’t sure that this was actually real, but it’s listed on the Time Out website, so we’re guessing it’s pretty legit.  You can sign up through this link here. Read more

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