did have a few student loans but, mercifully, they were hard to come by, and they went (thanks to my mom) straight to my tuition bill instead of my bar tab. As a result, when I graduated I was only a few grand in debt, and, when I got my first decent job, I was able to make a lump-sum repayment. I want to mention an aspect about the student loan crisis that isn’t spoken much about – the student loan forgiveness programs are at risk of being cut. If this happens, it will mean that people were led to believe their loans would be forgiven if they work in government or not-for-profit organizations that typically pay less than for-profit employers. While fulfilling their 120-payment obligation (ideally 10 years), they’re making payments that don’t cover the interest, resulting in a vast accumulation of more and more interest. I’ve meet people
who claim that their outstanding loans are now more than twice what they borrowed, despite making their payments every month – some now reaching over $200,000... Ending these programs or otherwise rendering then ineffective will pull the rug out from under these borrowers who will then be stuck with much more than they started with which is already potentially more than they would have borrowed in the first place. Obviously these loans cannot be discharged in bankruptcy, so this either guarantees lenders a great deal of money, or borrowers a lifetime of insurmountable debt. – Jeremiah S. P.J. O’Rourke comment: Jeremiah, you make a good point. Leaving aside the question of whether – and to what degree – student loans are good or bad, they are a business deal. Under rule of law, the terms of a business deal
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American Consequences 19
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