That's a good point, but that requires a meeting of the minds or a middle road. Yes, the attorney pulling in 6 figures can pay off the debt but the average person working for the man may get caught in the trap. There are more average Joe's up to their ears in student loans than there are 6-figure attorneys who are capable of handling a huge debt burden.
If you study advanced economies that have risen and fallen there is always one common theme -- too much debt. The US is going head first down this path and it will end badly. If you buy a car and lose your job you have to sell the car at a significant mark-down. If a bank makes a loan and the payments don't come in as expected the bank has to sell the property at a significant mark-down. Oh wait...no, no. That doesn't apply to banks. They get to mark-to-whatever they like. To bad the guy dumping the car couldn't make up his own price for what it's worth.
If you are smart in where you go to school. I really dont think the debt should be higher than 80, and that is only if you attend a top school. Otherwise more than 60 is dumb, and you should be able to do it in under 30, and under 25 if you know what you are doing, and under 16 if low debt is your goal.
I hope this chick works for a hospital or large group. If she's this financially illiterate, she definitely won't make it long in private practice if she's on her own.
Agree. I went to med school with some people who had huge loans. One of them, 23 years later, lives in a 2-bedroom apt. She is basically spending her working years paying her loans instead of buying a house. Those are the trade-offs. But this story of this doc totally ignoring her loans is pathological. That is not just financial illiteracy, it's living in a fantasy world. Nothing wrong with not giving your kids everything. My parents gave us a gift on our birthday and on Christmas. If we wanted anything else, they said, "When you grow up and get a job, you can buy that for yourself." If we wanted to go anywhere exotic, they said, "Yes, you can go there when you can pay your own way." They made me want to grow up, get my act together and work hard. That is an exceptional gift.
Peter Schiff is right on <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/ei2CH9A3H8U&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/ei2CH9A3H8U&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
The SEC should get involved and bring margin rules to the table. Calculate average first year salary, use that to calculate the margin requirement for a loan. So of Jane wants to go to school and learn to be a artist, and the average initial salary pays 8,000 dollars annually after graduation. The max loan amount SLM,etc.. can give out is 4 grand for an Art degree. Treat a college education like the buying a derivative and bring margin rules to the table.
thats an awesome idea! What if we Democratized the student loan origination system too, so that people can go long or short the entire career path via the student loans... Mind you given the typical markets propensity for bubbles in both directions, it may not add value... Then you could tie entire departments in the school to the proper functioning of these Markets... and their compensation and performance would reflect it as well. But I see, its all a ploy by various governments to hide unemployment by reducing labor Market participation, and to incease "GDP" by creating an economy based on "learning" rather than producing.
It went the same way for me ,,,however if our economic plight continues with the idiots in washington compounding the problem ,, well everyone will have are childhood Its not that i resent folks whom were given everything in life, three legs up.. its just so time consuming to get their the old fashion way..
The only thing that should be allowed for bankruptcy should be medical bills. Otherwise, all other types of debt should only be forgiven in death. For certain hardships, I would be willing to allow freezes on interest, fees, and penalty charges. The original loan principal would still be required to be paid back. I don't expect anyone to share my views on this.