Sure looks that way, don't it? Except that money is never going to be actualized. It's a made-up number. My wife has a former colleague who hasn't paid a dime on her student loans since graduating in '97. They're just up there being deferred forever. Not easy, but it can be done. Not our income… their income. They own these loans. Fully paid off, they're worth this much. Behold: the makings of a financial crisis. Just wait until some clever fuck starts selling derivatives on student loan debt. I was off by a bit - I misremembered it scarier than it was. it's still terrifying. Run it yourself: head here. Go "4 year private" "7 percent" "5 years" and "100%." Pick "18 years." Worst-case? Sure. But that's me sending my daughter to a decent private college for an extra semester or two and paying for the whole thing out of pocket. I got $820k. 7 percent wasn't a guess, by the way, it's a historical average. 1) Put a social worker through grad school 2) Whose father was an inner-city psychiatrist 3) Whose best friend (and father of the social worker's sister's boyfriend) was a VA social worker and 4) Whose aunt and uncle were 100% disability SSI schizophrenics. No news here, cuz. I lived this shit from '96-01. Now talk to me about my buddy with Lyme, who's 100% disability, which means when he is feeling well enough to work we have to pay his dad.I'll ask then: you bought 12 months of deferral for 100,000 dollars?
Wha... How is that income? Are they assuming you borrowed 130k to further lend out at an even higher interest rate?
OK, my head is spinning. Private school is going to cost about half a mil a year by 2030?
Read this, which certainly deserves it's own hubski post but I'm having trouble getting anyone to read it.