How the heck can someone be allowed to build 360k in student-load debt? Stupid on the part of the lender, just like in the housing crisis. However, I suspect if we dig below the surface we will find the hand of gov was involved.
Well, if it can’t be discharged under bankruptcy, they are less likely to care. They know they will probably be paid back.
“if we dig below the surface we will find the hand of gov was involved”
No kidding! Student loans are a scam, and not unlike every other govt intervention program the very existence of them caused tuition to go up and quality of education to go down. Not to mention a kid starting life under crushing debt.
Have you seen those commercials advertised on MTV during the day showing college students with fistfuls of cash? That's how.
I don't want to diminish personal responsibility but there are many student loan agencies that make it real easy for students to get money. A lot of money. Not only for class but to live quite comfortably while attending school. They take advantage of the students' financial naivety. Of course, these formerly naive students get a real quick lesson in compounding interest when the bill comes due. There's a whole lot of young people out there in the same dire straits as this lawyer. Congress is starting to take notice.
And to be fair, a big chunk of that $360k is in interest and penalties, which add up quick when one hasn't made a single payment towards his student loans in the last four years.