Student Loan Debt For Law Degree
There is a financial crisis here in the united states roughly 45 million Americans owe over 1.6 trillion dollars in student debt so back in March to capitalize on this crisis Buzzfeed released a video that included these two people who talked about their student loan experiences and what they were doing about their debt I think the way our student loans are given is super predatory on people who are young and don’t understand or people who think that their education is going to translate into a higher paying job as you’ll see liza asked for a loan and the government gave it to her those predatory monsters but this is clearly a problem when people like Eliza sign up for student loans they might not understand the terms of the loan or what they’re getting into.
I originally had about 7075000 in loans from that one year of grad school now let’s see what considerations Eliza made before committing to this huge sum of money in my mind I was thinking well I’m going to be a lawyer I’m going to make tons of money I know it’s going to take me some time but I’m going to pay off these loans and that’s good when you choose your major you need to weigh how much the school will cost against how much you will be earning in the workforce it’s called return on investment straight out of school the economy was horrible and I was struggling and realized just wasn’t even what I wanted to do and that epiphany cost her 75 000 with interest.
It’s now up to almost 150 000 now I do something completely different where I don’t earn a ton of money I’m on income-based repayment so I make really small payments they call it negative amortization where I’m now accruing interest on the interest basically this means that her payment is so small that it’s less than the interest that she was charged for that month I really didn’t understand the magnitude of what taking out that money would mean clearly particularly the terms of the loan because a huge amount of it is something called grad plus so some of the loans are federal subsidized which means the interest is lower and I believe I’m not even sure that it’s simple interest so I just pay the interest off the principal I’m not even sure you’d think that after 20 years that she’d have a clear understanding as to the terms of her loan but whatever I’m paying interest on the interest and I’m not even paying all of the interest in each payment.
This woman is never ever going to pay that loan back having all that debt from all those years of struggle is still a weight on me even though I feel like now I’ve finally found my path Eliza doesn’t mention what that path is exactly but I hear that being a part-time yoga instructor can be very fulfilling for undergrad I took about 18000 dollars in total Jace doesn’t mention where or what she was studying but regardless 18k for undergrad isn’t unheard of as for grad school oh gosh um I initially had a full ride the first year and then the second year came I talked to financial aid and they were like surprised you only had a full ride for your first-semester surprise you’ve been pranked bro either that or she just wasn’t paying attention to the terms of her scholarship and so I ended up taking about 100k extra in student loans that should have never been taken out.
As soon as we opened up my student loans I was delinquent and I think my first payment due was like fifteen hundred dollars which I don’t think I even made in a month so Jace took out a hundred thousand dollars for grad school for a degree that clearly didn’t have the potential for providing a return on investment there’s not a lot of information that’s uh given out I know there’s entrance and exiting counseling sessions but it doesn’t really tell you what to do oh it’s the counselor’s fault for not explaining that you need to make more in a month than the total of your monthly payment again Jace doesn’t say what she was attending grad school for but clearly it wasn’t for a masters in mathematics.
So now within the span of about four or five years, it went from like 117k, and now it’s 145k I believe the last time I checked now you might be thinking that’s crazy there must be some mistake how did her deck grow so fast does she have some insane interest rate or something I figured out how to keep my loans and repayment okay that’s a good start because you don’t want your debt to bloom completely out of control but I’m actually currently paying zero because I don’t even make enough to be paying monthly rates so it is nerve-wracking but I’m hoping that within 10 years I’ll figure out how to get it all forgiven that’s not a legitimate strategy counting on hundreds of thousands of dollars of student loan debt to be forgiven is like counting on winning the lottery the odds are against you.
I just really want to be financially stable because it’s affected the quality of my life college is an investment in your future and if you pick a frivolous major you’re earning potential will be non-existent and you’ll be hounded with debt for the rest of your life but at least jace learned her lesson I mean if she had the chance to do it all over again she wouldn’t have taken out those loans right honestly if I knew that I would have to have all those loans under my belt I would have gone and applied to the ivy league school of my dreams I would have applied to Harvard so instead of picking a different major or going to a different school she would have gone to a more expensive school and taken out even more money in student loans unbelievable but as it turns out there’s hope for people like Eliza and Jace and that hope is a bailout from us congress in June 2019.