Sometimes the Land of the Free isn’t. In fact it is rather costly. That is the case for today’s college graduates who find themselves $27,000 in debt on average. It is a debt that very many of them may not be able to pay. And it underlines the value of the tuition reimbursement benefit as a tool for employers fighting to recruit and retain the people they need.

According to a recent report by the New York Federal Reserve Bank, 9.1% of students default on their federal loans within two years, and 13.4% within three years.

A recent Wells Fargo Retirement Survey saw more than half (54%) of millenials responding that debt was their biggest long-term financial concern. And student loan debt, by law, still cannot be settled in bankruptcy.  If this problem is not resolved in Congress, interest rates on Federal Stafford Student loans are likely to double.

"A college degree has the potential to become more of a burden than a blessing for those saddled with unmanageable debt in a tough employment market," said Richard Cordray, director of the Consumer Financial Protection Bureau in May.

"Student debt has become the defining feature of their lives — the millstone around their necks that holds them back from a full financial future."

Business Insider reached out to seven college graduates ranging in ages from 25 to 53 to hear their stories of student loan debt.  Here are just two of their stories.

Stephanie Snyder, a 44-year old mother graduated in 2005 with a BA in Public Administration.  Her debt amounted to $38,000. In her effort to pay that off, she worked three jobs. That route was not working, so she enlisted in the U.S. Army National Guard. After being injured in training, she awaits her VA benefits and has returned to public service. To make matters worse, she was going through a divorce, caring for a terminally ill father, and assisting her mother and sister financially.  Snyder’s paychecks were garnished and her tax refund offset to pay her creditors, leaving very little to care for her and her son.

Carla Ruiz, 53, obtained her MBA in 2006. It came with $120,000 in debt. Ruiz also bought a home in 2006, and like many other home buyers who plan on refinancing at a later point in time, included her student loan debt with her mortgage.  Approved for an adjustable rate mortgage (ARM) worth $250,000, she ended up with a payment of $2,200/month. In the meantime, she was raising seven children.  The time came—or so Ruiz thought—to refinance, only to be told her debt-to-income ratio was too high.  Not able to modify her home loan, and with a bank unwilling to work with her, she eventually did a short sale of her home for $55,000. She now lives in an attic apartment, her credit shot and a huge amount in student loan debt still left.

While the remaining five stories are no better as unhappy stories go, an underlying theme emerges clearly.  College is expensive, so expensive that it may begin to deter many from going that avenue. But is that the answer?

For some, education beyond a high school diploma may not be in their best interest.  For others (I count myself as one of them), a master’s-level degree is in the future despite the high cost associated with it.  I’ll roll the dice like so many others and hope I do not end up being interviewed by Business Insider some dark day in the future. 

For employers, the situation suggests that offering a tuition reimbursement plan can be a valuable tool for attracting and retaining millennial and Gen X talent. Just how valuable will likely be determined by how potentially generous the plan is. According to ASE’s 2013-2014 Michigan Policies and Benefits Survey (February 2013), 70.1% of responding firms offer tuition reimbursement, paying out an average of $3,447 in the last year.

Regardless, one thing is for certain. The cost of education is a huge financial gamble with no guarantee that the student-borrower can pay it off in the long run.

Sources: Yahoo! Finance, New York Federal Reserve Bank