You may already be kicking in $2/day for folks like “Cathy”.
In my law practice I regularly see people in their late 50’s/early 60’s with hundreds of thousands of dollars in Student Loan Debt - essentially all of which is taxpayer guaranteed - and little or no assets. Several years ago I met a prospective client who had $588k in student loan debt from undergraduate, medical school and two master’s degrees which he earned post MD while waiting to get accepted into a residency program. He was never accepted, for whatever reason, and earned about $1200/month as a tutor when I spoke to him. His loans were coming out of deferment at that point and the minimum payment was starting at $8,100/month.
That story was the largest excess in student loan indebtedness until I encountered someone with a $756k balance after having paid off 8% of her student loan balance over some long stretch of time. Just as I began consulting with her, she let me know that DOE had sent her a letter announcing the forgiving of that balance. She was happy to offload that on the back of the taxpayer.
That is the record for now, but what may be lurking ahead? There seems to be no upper limit n the total indebtedness possible under federally guaranteed loan programs.
>> Several years ago I met a prospective client who had $588k in student loan debt...That story was the largest excess in student loan indebtedness until I encountered someone with a $756k balance...
That’s astonishing. I had no idea they could run up that kind of debt.
Federal student loans and their track record of screwing up higher education and shafting the taxpayer is an infuriating travesty for which “someone” should be held accountable. But of course that won’t happen.
About ten years ago, I dated a woman in her 60s going for a Ph. D. or Ed.D. with unspecified student loans. After thinking about the math, I ended the relationship.
I am surviving with no car and renting a modest apartment in a small town. Pay cash, unless the payoff is swift and sure. I’ve talked to many people (usually female) in similar circumstances to “Cathy”. Don’t be Cathy.
Wow. Complete insanity.
It will be interesting to see what happens to the bloated education system as the Baby Boom echo ends, and they have steadily falling numbers of new students.
My student loan equals the entire GDP of the nation of Gambia.