SEMINARY LOAN INDEBTEDNESS

The arguments influence the student’s views about debt, saving and giving money away as well as the student’s emotion about money. The most noted theme is the theological theories about cash that entails the numerous reason pertaining giving. The paper discusses the background information, problem statement, hypothesis, importance, limitation, review of the literature, methods of data collection, findings, discussion, and summary. CHAPTER ONE: INTRODUCTION Over the last two decades, the several researchers like Auburn Center for Theological education have keenly followed the growing theological student’s educational debt. Due to the ballooning indebtedness documented across the twenty years, the researchers issued an action call for the religious schools to assists the applicant regarding the study loan. Though, the theological student makes up to fourteen percent of the entire student enrolling for the university and colleges.

Another research conducted by the National Association of Evangelical concerning financial realities straining the immense pastors reveals that a third of the pastors had student loan debt amounting to approximately thirty-six dollars. The findings on the same research are that fifty-five percent of the evangelical pastors have congregations less than one hundred. The congregation number may seem un-significant, but the financial implication of few number of the congregation is hindering their leaders. As the qualification on job demands increases, the divinity school requires a bachelor’s degree which makes the seminary student continue borrowing attained the job specification requirements. Because of the demand and the economic difficulties the seminaries are increasing the student’s fee regardless of student’s status with minimum direct support to the students.

However, the little assistance of the students from well-wishers also demands to increase to enable them to cope with the high fees demanded. The seminary new strategies of the courses are not supportive and drastically improve the rise of the seminary student indebtedness. The seminary new liaisons such as related church colleges, with a different system of delivery, online courses, and off-campus classes require additional cost. • Church: the potential student indebtedness connected later to the lower church congregations. The research is useful for the faith-based national bodies allocate debt scholarship for the college graduates enable them to repay their debt. The study can significantly benefit the students who intend to join the theological college and further researchers on the seminary student’s loan indebtedness.

Research Questions The research question includes outstanding student loan in terms of household net worth, student’s debt, equity of college degree LITERATURE REVIEW The research conducted by David Neidert of the Anderson University of theology concerning the seminary student educational debt and financial literacy in February 2015 reveals that 80% of the students are aware and concerned of their financial future. 43% percent of the respondents are very interested. David found that economic challenges have implication and form professional ministry choices. 92% of the participant strongly agree with the statement only five percent did not agree. Another research conducted by the Auburn Center for Theological validates that the indeed debt is becoming a menace with the majority of the theological student carry additional debt.

Currently, the seminary studies borrow debt in more significant amounts compared to the past. Consequently, the majority of the seminary school graduates have confirmed that the level of the debt is significantly affecting their choices of career. The educational debt they are serving holding them back from acquiring homes, saving for the future plans and the kids’ education, delay their needs for health care hence causing depression on their professional and personal lives. The ledger fee also varies depending on the academic year and is determined by the education departments. 4 Report on the seminary indebted task force summited on 2016 indicates that debt for the theological students stands at $30,000 to $ 60, 000 per student. The General Board of Higher Education and Ministry surveyed to understand the present debt reality for the United Methodology Candidate for undergraduate and graduate ministry, members of provisional, deaconry and elders.

The findings show that 29 percent of the students graduated with no debt, the undergraduate borrowing average of $22, 500 while postgraduate student borrowing average of $44 300. The total average debt, however, stands at $66 300 from all time active students. The higher amount of credit by seminary graduate may affect the effectiveness of the ministry. In this regard, the papers focus on quantitative data analysis. The researchers collected data from both primary and secondary sources. The data were analysed using specialized computer software’s and presented. The data collected through various research activities. 7, 400 graduates from 25 years to 37 years were sampled and interviewed. The reliability of the data is that the theological college presented un-identical data and the questions have asked regarding the difference in sample emerged every time.

6 The time period is identified as a factor causing variation of the data. The results will be documented on the student debt level. The data also presented on the longitudinal charts; they are the same to overall sample of every year. The data has weighed and represented according to the year of survey. Survey The survey focuses on the empirical analysis of data from the National Longitudinal Survey conducted in the year 2016. The survey was conducted annually by the Bureau of Labour statistics. 7,400 graduate samples were sampled and interviewed between the prospective years 2014-2016. Participant were between the ages of 33 years to 37 years. Observation According to the previous researchers, the number of the borrowing continues with the majority of graduates suffering while repaying outstanding education debt.

The loan indebtedness level has increased over the last two decades. The average of borrowers took at 8least $ 10,000 in 2015 to $ 37, 9500 in 2017. The show inflation on borrowers in the prospected years under study. The loan indebtedness increase observed as attributed to the federal legislation amendment 2011. The school financial aider can assist the student to lower the borrowing attitudes only if they understand the financial implication of loan indebtedness. The financial aiders can counsel the student concerns the same which could minimize debt drive. All theological colleges where the participants were a sample for interviews indicates that student is involved in borrowing to finance they are calling across the schools. FINDING Figure 1 shows that the borrowing is common among the students and continue to pile up across the years.

In the year 2015, for instance, the outstanding indebted loan stands at $1,978, the figure almost triple in the following year to $ 6357. The Evangelical Protestant School closely follow Roman Catholic at 59%. Mainline protestant schools recorded a data of 57% loan indebtedness. The consumer of the loan price index and the other research by higher education price index shows the percentage of 27% and 38% respectively. Generally, the loan outstanding of the seminary students is higher and continues to increase as shown across three years of the study. Even though the figure is a little bit lower as compared to gross national debt on education loans, this figure might hinder the seminary, and ministry works. Majority of the students do not take time to plan for their finances and instead enrolled for scholarships, earnings, grants, family borrowing or resources.

In the regards, they instantly apply for loans to facilities following semester. However, other researchers argued that setting up a roadblock for lending can assist 11the students in minimizing loan indebtedness. The theological schools could support the students to reach suitable borrowing levels by providing the counselling and financial aid program packages. The financial package programs could aid the seminary students in identifying the borrowing needs, monthly payment, and estimated income including future wages. The conversation should comments during the application and ends after enrolment. As a result, the students will reconsider and examine their calls in the clerical field or instead consider taking other professional courses. It may discourage some potential students, but the majority will be able to take the opportunity to while in an internship, or part-time employment opportunity to support their college education while at the seminary.

It finally yields more sympathetic alumni. The schools must publish through their websites, advertisement and admission letters clearly about the scholarship or grants programs offer by prospect institutions, the qualification of such gifts, the period and the amount. However, the data does not show the corroboration between the levels of debt and the net tuition. The student takes the loans to meet even their living expenses as opposed to the tuition fee. The lack of connection shows the how complex, and the economy tasks a facing the seminary student and the requirement for new broad approaches that seeks to lower the living and tuitions fees. Bibliography America Association of University Women. 2017, Deeper in Debt: Women and Students loan, USA. Bethel University Hillman, N.