As you can see, the principal balance outstanding on this account is $271,928.81 at an 8.25% fixed interest rate. Much of this is due to deferments caused by economic hardship, i.e. not being able to land employment.
Based on this financial aid calculator, if this accountholder were to pay the minimum monthly payment of $2,042.91 for the next 360 months, cumulative payments will have totaled $735,448.13. This means that this person will have paid $463,519.32 in total interest – on top of the principle and interest paid so far. This person graduated from TTTTouro Law Commode more than 10 years ago.
In a prior TTR entry, this graduate left the following comment:
“I paint Houses for a living now, and am in close to 300 grand in debt, and counting.
The old resume with Touro on it never did the trick. Touro never seemed to impress the want ads on Career builder or Monster.com. no matter how much I tried to rephrase it as "Legal Studies" or extra college credits with an emphasis on Law.”
In a subsequent email, this reader also provided me with a scanned copy of a rejection letter he received from his bank when seeking to buy a new rug for his parent's basement.
“Thank you for favoring Wells Fargo Financial National Bank with your revolving charge interest.
We have given your application the most careful consideration. As much as we would like to serve you, we cannot do so at this time.
PRINCIPAL REASON(S) FOR ADVERSE ACTION CONCERNING CREDIT:
EXCESSIVE OBLIGATIONS IN RELATION TO INCOME”
“Bad credit can keep you from being approved for a car or home loan, it can make a landlord choose not to rent to you, and it can even affect whether a potential employer decides whether or not to hire you.”
It is comical that this private, piece of trash “education funding company” provides advice on “responsible borrowing” – but does not engage in responsible lending.
“If you thought that we were nearing the end of the housing crisis, think about the fact that the new generation has too much debt and too few job prospects. Where is the next generation of home buyers going to come from? Having mortgaged their future to the educational establishment young people are not soon going to be in the market for new homes.” [Emphasis mine]
Such crippling student loan debt causes many young people to postpone milestones such as marriage, having children and buying a home. This WILL have long-lasting repercussions. Furthermore, the U.S. economy is predicated on consumer spending. How the hell are we supposed to jump-start the economy when MILLIONS of college graduates are paying $800-$3000 a month in student loan payments for the next 15-30 years?!?! This is a mortgage payment that is not going to pay for a house or other necessities of life. How are legions of graduates – MANY of whom are making $25K-$45K per year – supposed to support a household, pay the bills and raise children on those pathetic salaries, when they are burdened with these liabilities?!?!
If you are reading this as a prospective law student, take heed of these words and stories. Do you have SERIOUS connections or the financial means to go to law school? If not, then you should not pursue a “legal education” in this country. There are simply too many law school diploma mills producing FAR TOO MANY graduates – for the available number of positions. Tuition has been skyrocketing for decades, and the banks own Congress. If you need to take out private student loans to finance your “education,” you will almost certainly regret the decision to attend law school. Remember, you cannot walk away from student debt.
Also, if you default, you can count on employers finding this on your credit report. Do companies want to hire someone who is not “responsible” enough to keep on top of their student loans? Even the U.S. military is now performing credit checks when making hiring decisions.
Furthermore, banks do not exactly want to extend a mortgage to someone who has $200K in outstanding, NON-DISCHARGEABLE student loan debt. Student loans can have life-altering repercussions.
In the last analysis, we need to work together with our allies at http://alleducationmatters.blogspot.com/ and Alan Michael Collinge at http://studentloanjustice.org/ to truly bring this issue to the forefront. While Cryn Johannsen and Collinge refrain from using pictures of filthy toilets and puke-covered Dumpsters, we are largely on the same page when it comes to student loans. After all, this is an issue that is DIRECTLY affecting millions of young people.