The $1 Million Student Loan

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Feb 11, 2007
3,849
1,817
1,743
Oklahoma City
#1
WSJ May 26

"DRAPER, Utah—Mike Meru, a 37-year-old orthodontist, made a big investment in his education. As of Thursday, he owed $1,060,945.42 in student loans.
Mr. Meru pays only $1,589.97 a month—not enough to cover the interest, so his debt from seven years at the University of Southern California grows by $130 a day. In two decades, his loan balance will be $2 million.
He and his wife, Melissa, have become numb to the burden, focused instead on raising their two daughters. “If you thought about it every single day,” Mrs. Meru said, “you’d have a mental breakdown.”
Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department. Five years ago, 14 people owed that much.
More could join that group. While the typical student borrower owes $17,000, the number of those who owe at least $100,000 has risen to around 2.5 million, nearly 6% of the borrowing pool, Education Department data show...."
 
Oct 30, 2007
2,451
2,247
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#2
He makes $160K per year (after taxes), yet he can only afford to pay $19K per year in student loan debt? :rolleyes:
 

Jonkr06

Territorial Marshal
Aug 18, 2007
7,209
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Katy, TX
#3
Huh, I guess I thought a 37 year old orthodontist would be making more than that. Seems like a pretty poor investment for that kind of take home.
 

oks10

Territorial Marshal
Sep 9, 2007
7,260
6,354
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Yukon, OK
#4
You guys should Google him. He's getting NO sympathy from anyone (such as Reddit) bc his take home is 13k after tax and the guy lives a lavish lifestyle.

Sent from my Pixel 2 XL using Tapatalk
 

CocoCincinnati

Federal Marshal
Feb 7, 2007
15,149
23,119
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Tulsa, OK
#6
According to USC's website, the total cost per year to attend is around $75,000 for undergrad (which is outrageous BTW) and about $125,000 to $130,000 for the school of dentistry. Anyone planning to borrow that whole lot to attend should know what they are getting themselves into and plan accordingly. Oh well, at least he didn't spend that much to get a degree in gender studies, at least he got a degree that actually allows him to get paid, that's something I guess.

With the government having total control over student loans now, colleges know they can charge anything and they will eventually get paid. So why wouldn't they jack up the rates even more than they already were. This is made even worse by young kids hearing all these politicians promising free tuition which could cause many of them go into it thinking that by the time they graduate, uncle Sam will pick up the tab so they use zero restraint and just take the max amount of loans possible instead of maybe choosing an institution with cheaper tuition costs. This problem is only going to get worse.
 

Cowboy2U

Federal Marshal
Mar 31, 2008
10,948
1,630
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#7
According to USC's website, the total cost per year to attend is around $75,000 for undergrad (which is outrageous BTW) and about $125,000 to $130,000 for the school of dentistry. Anyone planning to borrow that whole lot to attend should know what they are getting themselves into and plan accordingly. Oh well, at least he didn't spend that much to get a degree in gender studies, at least he got a degree that actually allows him to get paid, that's something I guess.

With the government having total control over student loans now, colleges know they can charge anything and they will eventually get paid. So why wouldn't they jack up the rates even more than they already were. This is made even worse by young kids hearing all these politicians promising free tuition which could cause many of them go into it thinking that by the time they graduate, uncle Sam will pick up the tab so they use zero restraint and just take the max amount of loans possible instead of maybe choosing an institution with cheaper tuition costs. This problem is only going to get worse.
Jesus, if you're smart enough to get a degree in Orthodontics how can you be that ignorant in finances...must have thought the nitrous mask was oxygen...
 

oks10

Territorial Marshal
Sep 9, 2007
7,260
6,354
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Yukon, OK
#8
You guys think he's dumb but he's really just playing the system. From what I've read, the federal loans are forgiven after 25 years and at this rate he'll have paid less over that time by doing it this way than had he actually paid off the loan.

Sent from my Pixel 2 XL using Tapatalk
 

Jonkr06

Territorial Marshal
Aug 18, 2007
7,209
2,888
1,743
Katy, TX
#9
You guys think he's dumb but he's really just playing the system. From what I've read, the federal loans are forgiven after 25 years and at this rate he'll have paid less over that time by doing it this way than had he actually paid off the loan.

Sent from my Pixel 2 XL using Tapatalk
That's probably true actually.
 

wrenhal

Territorial Marshal
Aug 11, 2011
6,214
3,245
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48
#10
You guys think he's dumb but he's really just playing the system. From what I've read, the federal loans are forgiven after 25 years and at this rate he'll have paid less over that time by doing it this way than had he actually paid off the loan.

Sent from my Pixel 2 XL using Tapatalk
When did this start? I've been out of school for almost 25 years and I've heard nothing about forgiveness.

Sent from my Moto G Play using Tapatalk
 

oks10

Territorial Marshal
Sep 9, 2007
7,260
6,354
1,743
Yukon, OK
#11
You guys think he's dumb but he's really just playing the system. From what I've read, the federal loans are forgiven after 25 years and at this rate he'll have paid less over that time by doing it this way than had he actually paid off the loan.

Sent from my Pixel 2 XL using Tapatalk
When did this start? I've been out of school for almost 25 years and I've heard nothing about forgiveness.

Sent from my Moto G Play using Tapatalk
I just googled it really quick and it does look like there's forgiveness options of up to 25yrs. I didn't look much closer into it though bc I've already paid mine off so it doesn't really matter to me. Lol.

Sent from my Pixel 2 XL using Tapatalk
 

Cowboy2U

Federal Marshal
Mar 31, 2008
10,948
1,630
1,743
#12
You guys think he's dumb but he's really just playing the system. From what I've read, the federal loans are forgiven after 25 years and at this rate he'll have paid less over that time by doing it this way than had he actually paid off the loan.

Sent from my Pixel 2 XL using Tapatalk
I'll bet his credit report looks like shit. He's probably driving a 81 VW
 

Cowboy2U

Federal Marshal
Mar 31, 2008
10,948
1,630
1,743
#14
Probab

Probably using his wife's credit. He is likely the only signature on the loans. I bet he's driving an Escalade and living in a $750,000 home. People like him generally live mortgaged to the hilt.
I concur, credit card rich...I smell bankruptcy coming...
 

RxCowboy

Has no Rx for his orange obsession.
A/V Subscriber
Nov 8, 2004
62,785
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Wishing I was in Stillwater
#20
WSJ May 26

"DRAPER, Utah—Mike Meru, a 37-year-old orthodontist, made a big investment in his education. As of Thursday, he owed $1,060,945.42 in student loans.
Mr. Meru pays only $1,589.97 a month—not enough to cover the interest, so his debt from seven years at the University of Southern California grows by $130 a day. In two decades, his loan balance will be $2 million.
He and his wife, Melissa, have become numb to the burden, focused instead on raising their two daughters. “If you thought about it every single day,” Mrs. Meru said, “you’d have a mental breakdown.”
Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department. Five years ago, 14 people owed that much.
More could join that group. While the typical student borrower owes $17,000, the number of those who owe at least $100,000 has risen to around 2.5 million, nearly 6% of the borrowing pool, Education Department data show...."
Your tax dollars at work.