There Are 101 Americans With Over $1 Million In Student Loans

Astronomically high college tuition facilitated by a bottomless ocean of student loans has saddled Americans with a record $1.48 trillion in non-dischargeable debt - an amount which has more than doubled since the 2009 lows.

As we reported in January, nearly 40% of student loans taken out in 2004 are projected to default by 2023 according to the Brookings institute.

While in March we noted that debt-laden millennials were set back an average of $140,000 vs. their parents - a problem compounded by the fact that students aren't just borrowing money for tuition; their student loans cover rent, food and other bills, leaving them with massive interest payments and in many cases, little prospect of getting ahead - much less saving for retirement. 

Enter the million-dollar-debtors

While millions of Americans are drowning in student loans - 101 people have the ultimate albatross around their necks; student loan balances exceeding $1 million, according to the Wall St. Journal. Five years ago, there were just 14 people with loans that large. 

Utah orthodontist Mike Meru, 37, is one of them. After graduating from Brigham Young University with no debt and a new marriage, Meru borrowed $601,506 debt to attend USC's orthodontics program - while his new wife Melissa finding work as a USC administrative assistant to save on tuition. After a few years, his student loan had swelled to $1,060,94. 

Mr. Meru said the dental school’s financial-aid director, Sergio Estavillo, estimated that the basic four-year program would require $400,000 to $450,000 in student debt, including interest. Mr. Estavillo said he didn’t recall the conversation but had no reason to doubt its accuracy. -WSJ

And despite Meru's $225,000 salary in 2017 which leaves him with roughly $13,333 per month after taxes, he makes monthly payments of $1,590 by taking advantage of a government-sponsored debt repayment program. Without the program which still leaves his debt growing at $130 a day, Meru's monthly payments would be $10,541.91 according to an email from his loan servicer. At this rate, Meru's loan balance will exceed $2 million in 20 years

Since refinancing his debt with the federal government in 2015, lowering the rate to 7.25%, Mr. Meru’s balance has grown by $148,948. It will keep growing through the 25-year life of the repayment plan until it reaches $2 million. -WSJ

All is not lost for Meru and many others like him, however - because thanks to the repayment program, Meru's $2 million balance will be forgiven after 25 years.

He agreed to monthly payments at 10% of his discretionary income, defined as adjusted gross income minus 150% of the poverty level. Any balance remaining after 25 years is forgiven, effectively covered by taxpayers. The forgiven amount is then taxed as ordinary income. -WSJ

And while crushing Meru's debt load places him in the upper echelon of those drowning in student loans, he attempted to mitigate the financial pain early on, before rates jumped and the snowball began to gather speed. 

USC charged tuition of $56,757 in Mr. Meru’s first year, American Dental Association records show. To save on expenses, the couple lived with his parents. He drove a Buick inherited from his wife’s grandmother for the hour-plus trip between Newbury Park and USC, located south of downtown Los Angeles. After his first year, and with his wife’s tuition discount, he owed $43,976.

By Mr. Meru’s second year, the interest rate on new student loans jumped to 6.8%, and USC raised its tuition by 6%. By the end of that school year, he had taken out a total of $115,000 in loans, which also covered a summer semester. Interest rates were roughly triple what he had planned for.

Between Mike Meru and the other 100 people with $1 million or more in student loans, US taxpayers will be on the hook for around $200 million - again, just for those 101 individuals. Unfortunately, that's just the tip of the iceberg. 

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.

...

More than a third of borrowers from one of the government’s main graduate school lending programs have enrolled in some form of federal loan-forgiveness plan. -WSJ

Outraged at his situation, Meru started a national dental-student movement in order to lobby Congress for lower rates on grad students. The effort, according to the Journal, went nowhere. Some dental school educators, meanwhile, have begun to worry about prohibitively expensive tuition. 

USC's dental school is one of the costliest higher educations one can attain - at $91,000 per year, and $137,000 when living expenses are factored in.

“I don’t think you’ll find any dental school dean in the country who will not tell you they’re concerned about the cost,” said Dr. Avishai Sadan, dean of USC's Herman Ostrow School of Dentistry. “But what’s the action?”

Sadan says USC raised tuition "to cover the cost of delivering a top education." (aka a top-tier dental school can take maximum advantage of the student loan racket). 

You cannot decide you’re just not raising tuition,” he said. “Everything that drives the operation, from salary raises to any other additional costs, have to come, for the most part, from tuition.”

Bottom line: with so many borrowers set to default on their student loans, those who can't make ends meet will be able to pay roughly 10% of their income for 25 years. The remainder, such as Mark Meru's $2 million balance, will be an obligation of the United States taxpayer. 

Lord knows the banks who facilitated this scheme aren't going to cover it.

Comments

. . . _ _ _ . . . Sat, 05/26/2018 - 11:16 Permalink

There Are 101 Americans With Over $1 Million In Student Loans

I think that is bad.

Also...

____________________________________

Activism + journalism = death sentence in the UK.

Tommy Robinson arrested, charged with causing a disturbance and incitement, convicted for contempt of court, sentenced to 13 months... all within a few hours.

He will most certainly be killed in prison.
The judge seems to have known this.

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https://www.youtube.com/watch?v=m6w7MJZX5YU

Stefan Molyneux: Tommy Robinson Arrested and Imprisoned, Media Silenced
https://www.youtube.com/watch?v=irhQtamQ6Mo (8:36)

Lauren Southern: Tommy Robinson Sent to Prison (12:12)
https://www.youtube.com/watch?v=tRt-iFANWKg

Tommy Robinson: I Won't Be Around For Much Longer (2:28) PRESCIENT
https://www.youtube.com/watch?v=qeAUS6HfX-k

There is a media publishing ban on this story in the UK.
Anyone re-tweeting, publishing, or publicly commenting from the UK could potentially be prosecuted.
Disseminate carefully.

Search: Section 35 Dispersal Notice.
Scary shit.

Background on Tommy Robinson: INCREDIBLE STORY - MUST WATCH!!
Tommy Robinson's BANNED speech: "The British Police State" (1:19:19)
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Leakanthrophy JRobby Sat, 05/26/2018 - 11:33 Permalink

Call me an antidentite, but 90% of dentistry is a swindle. No wonder the field is filled with (((bergs))) and (((steins))).

But how about the other 100 debtors?

Those are some expensive gender studies degrees.

Or is it Instagram studies? Social Media community manager studies? Whateva, bring on the labor camps! Those leftists should feel right at home in them.

 

Too bad there's no Harvey Weinstein anymore to make them all starlets.

Actress Naomi Scott nude photos leaked

https://celebrity-leaks.net/naomi-scott-nude-photos-leaked/

 

In reply to by JRobby

NidStyles revolla Sat, 05/26/2018 - 12:29 Permalink

Just because leftists will lie when working in traditionally conservative fields or when their livelihoods depend on them faking the funk doesn’t mean that there are no conservatives out there.

 

 You’re speaking to an infamous right winger right now. An entire city couldn’t get me from veering off my positions.

In reply to by revolla

jcaz Four Star Sat, 05/26/2018 - 12:48 Permalink

$1M plus to learn how to whiten Hollywood teeth- seems a tad steep, but that is the market price.  USC didn't pull that tuition number out of their ass- they know what their grads make, they price accordingly. He wanted the pedigree,  he has to pay for it.  Boise State had a dental program, shoulda shopped better.

Dental field pays far better than the medical field these days-  if this dude can't scale up his practice at this point, he's still not getting it....... Besides, this analysis is flawed- it assumes his income will be flat the next 20 years-  that's not how it works in real life.

Really want to fix the problem?   Get rid of Federal Aid,  let the schools experience market forces.  They'll price accordingly when the free tit gets taken away.  If not, oh well-  too many Universities and Colleges in the market now,  at least half need to go away.

In reply to by Four Star

fleur de lis Stan522 Sat, 05/26/2018 - 13:24 Permalink

There are many other fine dental schools all over the country.

The students at clearly overpriced schools really should understand that they will not pay this back in a reasonable time.

And knowing this, they should not have the luxury of making the taxpayers pick up the tab.

Prior to enrolling they should have to prove financial ability or get denied entry.

Or USC should be required to place them in highly paid jobs to justify the astronomic tuition.

And failing that, USC and the banks issuing the loans should absorb the loss -- like other businesses that are prohibited from forcing the taxpayer to cover bad business decisions.

The concept of the taxpayers picking up the tab for the reckless financial habits of schools and under/post graduate students has to stop.

The taxpayer has to be entirely factored out of the equation. 

This should be settled among school, student, and bank. 

And what is so impressive about USC anyway?

Can they permanently prevent cavities?

Can they straighten teeth in a month as opposed to a year or two?

Can they put cracked and broken teeth back together and implant with the root back into place?

Unless they can teach dental students to do things far beyond the practice and knowledge of experienced orthodontists they are not worth the money.

Someone needs to take a closer look at the tuition of USC since so much of it ends up on a tax bill.

 

In reply to by Stan522

MoreSun Blazing in BC Sat, 05/26/2018 - 14:43 Permalink

You dumb goyim, wracking up a million $ in debt to be propagandized by jew supremacist controlled academia- what an edward bernaysian nightmare, all manufactured & promoted by the zionist jew supremacists !

If you want to help end the jew supremacist stranglehold of all:

VOTE "PATRICK LITTLE" U.S. Senator June 5th in California !

https://www.youtube.com/watch?v=H6SOxd4B-cs

In reply to by Blazing in BC

MoreSun Noktirnal Sat, 05/26/2018 - 20:07 Permalink

And who will reap the benefits of the next destructive economic collapse- yip, the jew supremacist oligarchs and their goy accomplices of the world-as always.

Had enough?

If you, your family, & your friends are serious about putting a stop to the jew supremacist stranglehold on the world then make sure you:

VOTE "PATRICK LITTLE" U.S. Senator June 5th in California !!

https://www.youtube.com/watch?v=H6SOxd4B-cs

In reply to by Noktirnal

MoreSun jin187 Sun, 05/27/2018 - 11:13 Permalink

Really, look who took over the largest dental association in the late 1800's in America "the jews"

and two french jews started putting mercury in all the goyims teeth. The American Whites wanted nothing to do with it, but when the jews wrested the Association from the euro-whites, (((they))) quickly initiated their plan of mass mercury amalgamations. FACT !

It's the jew supremacists folks on every hand !!

In reply to by jin187

effendi fleur de lis Sat, 05/26/2018 - 22:49 Permalink

I doubt the taxpayers are picking up this specialist dentists tab. The guy will be paying well over 2 million in tax over the next 20 years so the 2 million forgiven is really out of his pocket. At least this guy ticks all the right boxes (white, married, studied hard, works hard etc). Unlike all the shits who waste taxpayers money studying womyns black lesbian literature.

In reply to by fleur de lis

Pool Shark jcaz Sat, 05/26/2018 - 13:01 Permalink

Anyone stupid enough to go to USC (the most expensive university in the country) on student loans, having already failed simple economics, is too stupid to have been admitted in the first place.

When my daughter applied to USC, I told her she wouldn’t be going unless she got a full ride. She (being good at math) understood that $75,000.00 per year for an undergraduate degree made no economic sense whatsoever. She knew what $300,000.00 at 7% interest would do to her future...

In reply to by jcaz

GunnerySgtHartman Pool Shark Sat, 05/26/2018 - 13:13 Permalink

Exactly.  I don't feel sorry for this guy.  There were (and are) plenty of good orthodontics schools in this country far cheaper than USC.  He didn't have to go there, but he chose to go there.  He didn't have to buy a Mercedes or a Tesla (even used!), but he chose to do so.  He didn't have to buy an expensive house with panoramic views, but he chose to do so.  He doesn't have to go on vacations (including a vacation to Cuba!), but he chooses to do so.  Now he should be forced to live with the consequences of his choices.  This guy is a classic textbook case of someone who repeatedly makes bad financial decisions and demands that everyone else bail him out.

Outraged at his situation, Meru started a national dental-student movement in order to lobby Congress for lower rates on grad students.

He should start a movement which pushes back against these ridiculously-expensive schools.  The problem is the cost of tuition.  Calling for a reduction in the interest rate does nothing to solve the tuition problem.  He's giving the grad school a free pass at taxpayer expense.

In reply to by Pool Shark

Pool Shark GunnerySgtHartman Sat, 05/26/2018 - 13:52 Permalink

You would be surprised how many doctors (presumedly smart, educated professionals) have absolutely no financial sense. Dr. Shark works with other doctors in their 50’s who are still paying student loans, and have little or nothing saved for retirement. They live like they always expect the money to roll in without thinking that they will eventually have to retire.

A couple of them have started working extra shifts in their early 60’s when they realized they weren’t in a position to even think about retiring...

 

In reply to by GunnerySgtHartman

Escrava Isaura Pool Shark Sat, 05/26/2018 - 14:57 Permalink

Can you see the problems below? It doesn’t get any simpler than that.

Meru borrowed $601,506 debt to attend USC's orthodontics program

After a few years, his student loan had swelled to $1,060,94. 

Since refinancing his debt with the federal government in 2015, lowering the rate to 7.25%, Mr. Meru’s balance has grown by $148,948. It will keep growing through the 25-year life of the repayment plan until it reaches $2 million.

Meru's salary in 2017: $225,000. How can the real economy afford this doctor salary?

 

Margrit Kennedy: If Joseph the father of Jesus would have invested one penny at his birth at 5% interest, and Jesus would have returned to the same bank in 1990 - at the time of the German unification - he would have been able to buy, with the money accrued in the meantime, 134 billion balls of gold of the weight of the earth, based on the official price of gold at this time.

This shows mathematically that the continual payment of interest and compound interest over a longer period of time is practically impossible. And explains why we have economic and social breakdowns.

 

Money CAN NOT have interest rate ever, never, because it has no valor, got it?

 

If you can not grasp this economic flaw 'scheme', you’re forever condemned to be a serf, an enslaved worker.

 

“The greatest shortcoming of the human race is our inability to understand the exponential function!” - Dr. Albert Bartlett

 

 

In reply to by Pool Shark

jin187 Pool Shark Sun, 05/27/2018 - 06:40 Permalink

Like my cousin.  USC was her 3rd or 4th university.  I've lost count of how many times she's changed majors and schools.  She already has a veterinary degree from OSU as well.  Dumb bitch was already almost half a mil in the red after OSU.  The best part is that she was working as a loan officer in a bank last I heard.  Guess a lot of people must bring their sick animals to the bank.

In reply to by Pool Shark

Pool Shark armageddon addahere Sat, 05/26/2018 - 14:00 Permalink

Yes, I did read the article.

And even with the loan forgiveness, after 25 years, he will have paid $477,000.00 in interest on those loans; still more than the cost of his tuition.

What the article  doesn’t mention is that he has to work for a sub-average government salary for 25 years in order to get his student debt discharged.

He could be earning two or three times that salary in a solo or small practice.

Had he gone to an affordable dental program, he would be easily earning an extra quarter-million a year for that 25 years; that’s over $6,000,000.00!

In reply to by armageddon addahere

RabbitOne tdag Sun, 05/27/2018 - 09:58 Permalink

Working as an IT database manager before I retired I learned the evil bankers ideals. They call these Whimpy loans - “...I'll gladly repay you Tuesday for a hamburger today...”. The idea is to take as much of a future highly paid persons initial reward as possible.

In the ideal world the person pays a reasonable rate for their education. Then with hard work and reputation he or she builds themselves into a highly paid job where they can use their handsome salaries to live like kings. Then come in the vultures.

Since the 1960s the vultures have attacked a medical and dental doctors present and future earnings. Remember it is all about getting a slice of a doctors $3 to $10 million dollar life time earnings up front.

The first set of vultures are the government/bankers/ education that take $400k to $800k as the entry fee into the profession. The second vultures are the bankers with their practice loans/ special loans to beginning doctors from $50K to $150K. The next set of vultures is the insurance/lawyers set to extract money from our tort system punishing the doctor for possible malpractice. I have named just a few. But is not unusual to see the highly paid doctor give up 50% to  60% of their life time earnings to these vultures. 

In reply to by tdag

OverTheHedge jcaz Sat, 05/26/2018 - 14:09 Permalink

I was told by a gentleman of much learning and gravitas (so it must be true?) that Harvard University has sufficient income from its investments and endowments to provide free education to all its students. However, it choses to charge said students nosebleed prices, in order that they "value their education".

I wonder if that fact is still true, after the insane inflation in school fees....

In reply to by jcaz