Skip to comments.He had $55,000 in student loans, now he owes $330,000 ... Here's how it happened
Posted on 05/06/2018 10:57:14 PM PDT by Wally_Kalbacken
Rick Tallini didn't worry much about the $55,000 in federal student loans he took out for law school in the 1990s. His future seemed bright.
Yet in the decades since he graduated, he's struggled to find employment and pay the bills. His original student loan balance, meanwhile, has soared to well over $300,000.
"They'll tack this thing to my coffin at this point," Tallini, 61, said.
(Excerpt) Read more at msn.com ...
Simple fact: about 85% of student loan balances are federally guaranteed, and over time that percentage is increasing.
With federally guaranteed student loans - the situation is a very clear zero sum game - what the student/borrower fails to repay, the taxpayer will repay.
Find that in the attached article. Nine yards of sympathetic treatment of folks who were smart enough to know what they were signing up for, but unwilling to repay the money they borrowed to attend school. And now the government and the servicers are the bad guys. Just listen to Elizabeth Warren get on her high horse and rail at servicers. Why those bastards are trying to collect on the loans taken out by the students! The temerity!
The fellow who has the $300k balance at age 61 may well die with it, and his estate will probably satisfy a small sliver of the debt then due. That's when the Treasury makes an accounting entry and the taxpayers pick up the tab.
Lazy journalists manage to present the details of the poor schmuck graduates who have large loan balances they cannot service, but they never find time to cover the poor schmuck taxpayers who have to pick up the tab for the degree in Women's Studies at Brown that didn't led to a productive job with enough disposable income to pay back the debt.
So very true. The government has to be gotten out of loan guarantees so the price of college can fall. It wasn’t so very long ago that a student could work their way through college-now it’s out of the question and most of that money goes to support left wing indoctrination.
Why, as a taxpayer, should I subsidize the education of a tmlwyer who cant find a job in a private practice or maintain steady government work - or a teacher who, after 10 years, still isnt making $40k?!
What does this say about the degrees theyre being awarded?
Apparently, they didn’t teach about interest at that law school.
Sounds like my erstwhile brother in law. Loser lawyer at 26 after failing the bar 5 times. A whole lot of nothing in between, two kids a Doctor Wife, divorce. Dropped from the bar for I guess is abandoning clients. Reinstated after psychiatric help, now 63, busted for Confidence scheme and embezzlement and living at home with my ex-wife. That is until jail time comes around.
While I realize that occasionally a debtor duffers some unforeseeable difficulties that can delay or compromise repayment ( therefore the lending provision for loan losses), thats not the substance of the problem today. Rather, the problem is mostly that many students borrow funds imprudently - usually for courses of study that are patently useless or poorly needed in the job market. It is imprudent to lend large amounts of money to persons who have little or no serious plans to repay Obama created this problem by his unilateral seizure , takeover of the student loan market. He should be forced to repay these very very foreseeable losses to the American taxpayers. Put him in Guantanamo , give him a sledge hammer and a nice big pile of rocks.
Effin idiot, with no aspirations.
He went to law school and could never find gainful employment to pay off $55k?
Bow did be ever vraduate?
To be fair, apparently I kent speil.
Thanks to my public screwel education.
Still, $55K doesn’t seem like a lot of money.
Cars and trucks cost that much.
I cannot confirm if its the same guy, but there is an attorney with the same name on Facebook flying around in his plane.
If the borrower then went through rehabilitation to take her loan out of default, a collection fee of 16 percent would be added to her new loan, increasing her debt to around $50,000.
Predatory banks working hand in glove with the Federal government. What could go wrong.
There is something that all the commenters seem to have missed so far. He is now 61, and took out this loan in the 1990s. He was already at least in his mid-30s then and wasn’t smart enough to figure out the math!
I’d call BS on the teacher that doesn’t make 40K after 18 yrs too.
No teacher is making that little working full time after 18 yrs. She either just worked part-time or something like taking years off to raise kids.
“Put him in Guantanamo , give him a sledge hammer and a nice big pile of rocks.”
How’s about we give him the sledge hammering and bury him with a pile of rocks?
Has he checked his credit score for free on Credit Karma?
At least with those you get a motor...
“Is this going to be on the test?”
Still, $55K doesnt seem like a lot of money.
Cars and trucks cost that much.
At least a car or truck will take you places.
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