From the Bottom to the Top and Back to the Bottom Again.

The following is a comment that was left on a recent post and I thought it was worth re-publishing a tail for the the weary:

I was denied my law license in Illinois for 7 years because I was unable to pay even the minimum payment for my student loans. I eventually enlisted the help (because I certainly couldn't pay his fees) of a solo practitioner who suggested I consistently make a payment to the loan holders and keep a record of those payments. Every six months or so I kept petitioning the Illinois Character and Fitness Committee to reconsider my application. I sat - alone - before a literal tribunal of attorneys, all physically seated higher than the chair reserved for the applicant, and was insultingly told I would never receive my license unless I could get some "rich relative" to pay my loans. What rich relative? My parents' home is valued at less than 1/2 what my student loans have risen to be. After 7 years of rejection, 7 years of falling behind on the compound interest, of being hounded by a rotating rogue's gallery of debt collectors, of watching my law school classmates pass me by, gaining experience while I languished in a legal editorship, I finally broke through to some sypathetic someone on the committee and got my license. Now 11 years later, I've worked my way up through the associate ranks of a mid-sized Chicago firm. I had been groomed for the last year as the next potential partner. My boss was telling me for a year how wonderful my prospects looked and to expect an invitation to sign on as a partner come the December 2010 reviews. Long story short: the partnership was pulled out from under me at the last possible second, not for the quality of my work, not for my aptitude, but because my long-fought troubles with student loans had somehow rendered me "financially unfit" to handle the Firm's multi-million dollar lawsuits. In other words, if I couldn't handle my own money, why should they trust me with the Firm finances? (Somehow the 6 years of killing myself to prove that I was worthy enough to consider for partnership wasn't enough.) Just weeks before the partnership determination was to be made, I received the second of 2 garnishments on my wages for my defaulted student loans. The default came to the attention of the Firm ironically through the collection counsel that the Firm uses to collect fees from delinquent clients. So, even though I had spent years dutifully paying at least something on my student loans, my career, such as it is, was once again derailed by the student loan anvil that I will apparently drag around after me for the rest of my life. I, once again, have little hope for the future. I work in "limbo" at the moment, never sure whether I will be bounced out on my ass as one of the partnership candidates who just didn't pan out. My Firm has a small army of such underlings who are all routinely treated with disdain and shoveled shit cases/files to discourage their continuing at the Firm. I want to leave, but honestly probably won't be able to secure another job anywhere nearby that might pay me the meager salary that I already do collect. Stupidly, I went trolling sites online that compared the salaries of 1st year associates in the Chicagoland area. Six years into my job at this Firm, I still don't make the 1st year salaries of most of the top-rated, top tier firms. I just don't know what to do.

I am not sure what you're supposed to do at this point.  In my opinion, if what you've told me is true, you've proven yourself to be a competent attorney--you may even be excellent.  It's a great accomplishment to be offered partnership.  I can't believe the partners at your firm reneged.  It's a shame that they can't see past your financial woes.  I wonder... What if one of the partners lost everything in a divorce because he was irresponsible and married his money-grubbing secretary without a pre-nuptual agreement.  What if a lawyer had a garnishment for child support?  Babies happen, yes--but isn't a child out of wedlock the epitome of irresponsibility?  What if a lawyer were sued as a result of a simple car accident?  Where is the line?  
Apparently, it's with student loans.  
The divine irony is that young people sign their lives away at about the same time they max out their first Discovery Card.  But, unlike the credit card debt, they can't shake the student loans.  Think long and hard before you pull out student loans.  It's not something you worry about later.  It's the gift that keeps giving, much like herpes.  Just when you think the flare ups are done, it comes back at the most inopportune times.  
Wait!  I have an idea.  Do your parents have any organs they can donate?  Do you?  Apparently, parents of an indebted college grad offered up their organs on craigslist for $200,000.00  (Thanks Tipster!) That's a real parental contribution that FAFSA doesn't take into account.  I remember, when times were good, reading about Indian people that sold their organs to marry off their daughters. The concept was so alien to me.  Not anymore.  It's right up there with selling eggs to infertile rich people--or the use of your womb for 9 months.  In other words, if there is a market for organs--American's will reconsider the utility of that other kidney in the very near future.

Anyone know where I can sign up for Cairo style protests?  We're long overdue.

One Reader's Plea to Michelle Obama...

Michelle Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

January 26, 2011

Dear Mrs. Obama:

Pretend you’re taking a walk with me; that we’re just two people chatting. I’d like to ask you some questions.  Can we speak honestly?

Arguably, an education is the most important thing a person can have. The day I graduated from Law School was the biggest day of my life, and it always will be. Some of my friends think it will be replaced by my wedding day. But I disagree because no one can ever take my education away from me.

I am proud of my degree, considering 1/3 of US students don’t graduate high school, and only about 3% of Americans receive a doctorate degree (US Census Bureau 2006). But I’m sure you already know these statics. And you know all too well how hard it is to get into law school, complete law school, and pass the bar exam, and no one can take those accomplishments from me.

You might even agree, since you’ve been quoted as saying that an education will make children better people, and give them a better, brighter future. You’ve said that as Americans we need to encourage children to dream a little bigger and reach a little higher (Your speech honoring the recipients of the National Arts and Humanities Youth Program Awards).  Your husband has said, “Education is … a prerequisite to prosperity,” and that, “In the coming decades, a person’s success in life will depend more and more … on a higher education.”

At the Anacostia High School commencement you said, “Part of being a mature and functioning adult in this society is realizing that life is a series of trade-offs. If you want a career that pays a good salary, then you have to work hard. You've got to be on time; you've got to finish what you start.” Mrs. Obama, I’ve always agreed and believed in everything you said.  I’ve made a lot of sacrifices. I worked hard. I’m always on time and I have ALWAYS finished what I started. I watched as my friends started to get married and have children, while I hardly had time to leave the law school library to go on a date.  I am persistent, and while waiting for my bar results I volunteered. But it’s been eight months since I graduated, and I still do not have a job.  In the absence of employment I have started dedicating at least 8 hours per day, 5 days a week, to applying for jobs, following up with people, and networking, but I still do not have a job.

You told the Anacostia graduates, "Don't ever scale back your dreams. And don't ever set limits on what you can achieve. And don't think for one single moment that your destiny is out of your hands, because no one's in control of your destiny but you." I never scaled back my dreams. I did everything everyone told me to do in order to achieve my goals. I stayed in school, earned good grades, and stayed away from drugs. I graduated from college with honors, and went to law school.

My question to you is, why are you urging people to strive for a higher education (necessarily encouraging them to go into mountains of debt) when there are no jobs waiting for them when they get out of school? Why is it that I did everything you are telling America’s youth to do, and I don’t have the successful job you speak of? Can you look me in the eye, and tell me why?

Mrs. Obama, you’ll probably never take a walk with me, but I really hope you listen to this one last thing I have to say: The thought that no one could ever take my education away from me was once inspiring. Now it feels like a jail cell. When you can’t afford your mortgage the bank takes your house away, and you are unsaddled with the crippling feeling of being buried in debt.  I can’t give back my education, so I’d like to make a proposal.

President Obama signed into law a $787 billion stimulus package on top of Bush's $700 billion TARP bailout.  Since 2008, the government has paid out trillions of dollars in bailouts, handouts, loans and giveaways, with no end in sight.  Instead of giving trillions of additional dollars to banks, financial institutions, and other greedy institutions responsible for the economic crisis, the Government should forgive student loan debt, which would have a stimulating effect on the economy. Hard working Americans who pursued a higher education, at your behest, would have thousands of extra dollars to spend, spurring the economy.

I am asking you, since I have done everything you said to do but cannot find a job, can you please help me?

Respectfully,

Julia Harris, Esq.

Julia,
You can put my electronic signature on that one!  /s/ Angel T. Lawyer

Who Would Have Thunk It? Success at Last!

When I started this blog in September of 2009, I had no idea that the subject matter would go viral. I think it's safe to say it has.   Well, I might have had a bit of an idea, or more of a hope.  The intention was always to get the message out.  It seems as though we are successful.

My personal goal was and remains making the sorry state of being a lawyer common knowledge.  Rather than nods of approvals when I say I'm a lawyer, I won't rest until I get a more realistic reaction like "oh, you must work your ass off and have no life" or "how much did *that* cost?" or "the market's not so great for that, huh."  Or until I stop seeing stories like this, that tear me up inside.  Also, May is a very hard time for me because I feel the pain of 45,000 graduates looking into an empty future.  November is even worse, because that's when these kids have to start paying on their loans.  I take all of this to heart and it fuels me to keep BIDER going.

As our readers know, I went to law school when the Internet was not widely used.  When I decided to spill my guts on the blogosphere, my intention was to put information out there for those capable of critical thought.  I started blogging and around the same time other blogs like Third Tier Reality by Nando and Jobless Juris Doctor and others emerged.  We found each other--realizing we're not alone, we linked to each other and sought to grow as a movement.  Unfortunately, we lost some of our strongest bloggers along the way, like Big Debt, Small Law and Esq. Never.  But for the most part, we kept trucking--trying to get the message out.  I know we weren't the first lawyers ever to say that we're disappointed with our career choice, but we may have been among the first to do it so publicly.

Here's to your future!  

Unfortunately, there is and remains much shame with outing the law profession.  That's why I don't respond to innocent emails asking me which school I went to, or which big law firm I worked for in the hey day.  I don't intend on coming out of the closet like Kimber Russell from Shilling Me Softly.  Contrary to  what the critics say, not all of the scam bloggers are so down and out that our professional reputation is beyond salvation.  I have a decent reputation as an attorney, but the salary is not commensurate.

In the beginning, there were more than a few days when a mean comment would bother me for hours at a time. I even recall someone making me cry with their mean comment.  Do you guys remember Doug of "Just Another JD to be"?  I hated that bastard.  I hope he rots in TTTToilet Hell.  People loved to pipe in with the mantra "NO!  You didn't do everything right."  Geez, thanks.  It's just a name.  Today, I would do things differently--I admit.  But I doubt that would involve pursuing a law degree.

I feel slightly validated by the NY Times Article about the shitty legal market.  But, more than that, I feel like the message is finally out there and people have all the information they need, the most important bit of information being that the law schools DO NOT provide legitimate statistics when enticing you to apply with those glossy brochures and prize course selection.  Caveat Emptor?  Maybe.  But it shouldn't be that way when you're dealing with Educational Institutions entrusted with the future of our youth and hundreds of thousands of dollars in debt.

Step 1: Get Into Law School, Step 2: Graduate from Law School, Step 3: Pass the Bar Exam, Step 3: Sell Your Diploma Because You're NEVER Going to Practice

Doing things differently?  Hmmm.  That's one way to "see it."

Interesting week in the law world.  I know these several things have been covered, but because I think they are all related, I'm going to cover the stories again.
Law Schools have no regard for whether  you'll be able to practice the law when you graduate.  NONE.  My alma mater admitted people with petty crimes on their records and mental illness.  These were issues that were left for the "Character and Fitness" portion of the bar to deal with.

Case in point, Michael Behzadi.  This freak graduated from the esteemed Florida Coastal School of Law.  Haven't heard of it?  Well, that's because it sucks.  And with every psychopath they shove onto the street, their reputation will grow.  Michael pled guilty to making threats.  He had a To-Do list, much like any organized student of the law.  Except his list had some disturbing to-dos:

The first item on the list is to "buy eggs," but the list also includes running guns to Nigeria and killing Behzadi's professor at Florida Coastal School of Law.

According to court documents, Behzadi's girlfriend reported in March that he was planning to kill his ex-girlfriend, her new boyfriend and her parents.

According to the documents, Behzadi sent his girlfriend an online message that read, "I don't want to kill her with the S&W revolver. Kill her. Shoot her dead. Drive up to Wisconsin first. Kill her family then tell her before I kill her. Dead. It feels good to hurt people."

Oopsie.  Well, how was FC to know that he was unstable?  Well, according to this article, he had a long history of mental problems.  Maybe they thought that law school would stabilize him?  Ha.  Anyone whose been to law school knows that law school, especially 1L year will unhinge you.  So, epic fail.

How about this one?  A blind chick from California was admitted to UCLA school of law.  How nice!  A token disabled person.  Nevermind the fact that she had to SUE to take the bar exam:

Enyart sued the NCBE, ACT and the State Bar of California in California federal court for violations of the Americans with Disabilities Act and state civil rights laws.

     She asked the court to order the NCBE to allow her to use a computer equipped with ZoomText and JAWS, presenting a sworn statement from her ophthalmologist to back up her software preferences.

     Finding that the accommodations provided by the NCBE were not sufficient to make the test accessible to Enyart, and that she would be kept from pursuing her chosen profession if her requests were not met, U.S. District Judge Charles Breyer granted a preliminary injunction and ordered NCBE to provide the software. He required Enyart to put up a $5,000 bond to cover the costs in case the NCBE eventually proved that the injunction was illegal.

Hmm.  That's a hidden cost of becoming a lawyer if I ever heard one.  During one the injunctions, the poor girl actually took the bar exam and FAILED:

The NCBE appealed, and while the case was pending Enyart took and failed the Multistate Professional Responsibility Exam (MPRE) and the bar exam. She requested a second preliminary injunction to take the tests again, which the court granted. Enyart has since received a high enough score on the August 2010 MPRE to qualify for admission to the California Bar but she failed to pass the July 2010 California Bar Exam, according to the ruling. 

I'm sure she'll keep chugging along until she passes, but she has yet to conquer the greatest hurdle of all: getting a job.  I'm not even talking about the job market sucking ass.  Anyone who has worked in law firms knows that they are the least likely to have the accommodations needed to employ a blind person.  Even if she managed to get a job at a firm that was willing to deal with her blindness by getting word processing software for the Blind--how is she to do on-line research?  Looking up something like "factors in determining child custody" on Westlaw will result in 200 cases and you can't skim the cases for relevance if you're blind.  Or, if you can, it will take you 800% longer because the software will read every last word aloud.  And what if you're a blind litigator?  How will you present evidence to the Court if you can't see it?  I bumble and fumble through my folder when I'm in front of a judge and I'm sure that's not unique to seeing people.  So, good luck getting a job.  UCLA should be ashamed of selling you a dream that will never be realized or only realized with great difficulty. I'm not saying it's right--it's just the facts.

Lastly, once you have gotten through law school and invested over $100K in getting the degree--sometimes the smartest thing to do with it is sell it on ebay for $200K.

So, what's the moral of this story?  If law schools want to maintain a place of dignity and respect in this Country, they should invest some time and energy into admitting students who can do legal work and give back to their alma maters happily.  Somewhere along the way, alumni contributions have been phased out as a source of income and tuition has increased to fund law school operations.  This model is bound to implode as fewer and fewer alumni look back upon their law school experience as worthy and lemmings grow brains and use a cost/benefit analysis in deciding whether law school is a worthy investment.

Today, I spoke to an older attorney who must be living under a rock.  She expressed dissatisfaction at her alma mater for costing her a whopping $20K.  We're all in the same market.  If she thinks her degree wasn't worth $20K, why do you think yours is worth $200K?  It defies logic.

Hump Day Horror Stories: Don't Go!

I had a good week.  Remember, I'm a hustler.  So I have used my law license to get a broker's license and I have had a couple of listings.  Haven't been able to sell one yet, but I was showing a condo to an older lady and she said something that made me smile.  One of my clients was calling me non-stop (a divorce client and YES they do that) and I had to take the call in front of her.  She said, "Oh, you're a lawyer too?"  "Yep.  I am," says I.  She said, "Oh, Lawyers aren't doing too well anymore.  My niece regrets going, she's earning nearly nothing."  The message is spreading.  It's taking time, but it's happening.

Many people come to BIDER by googling "what happens when I default on student loans."  I know we talk about it in roundabout ways, but i thought I should look for more illustrations of it.  So, I went over to studentloanjustice.org to look for stories about lawyers who are behind on their loans.  Here is a sampling of what happens when you anger Aunt Sallie:

Derek

I finished law school in Pennsylvania in 1998.
I never received a summer internship/clerkship and due to family problems back home I only worked part time in the summers for solo-practitioners.
When I graduated, I moved to California but never got any job offers.
So I moved back to Virginia and "temp'ed" at big lawfirms in D.C.
I got paid $10-15/hr to move boxes and file papers in a suit.
It was mind numbing and had NO potential to grow into a good job.
I had passed the VA bar exam too, but without a summer clerkship, nobody would hire me.
I left to work in the booming Internet field in 2000, but my company was bought by WorldCom which ended up going bankrupt and I was laid off in 2002.
I paid my loans up until that point, but after being harassed while unemployed and having them capitalize my interest every time I took a deferment, I gave up.
I took out $80k in Federal loans and needed an additional $20k in private loans to cover living expenses for the 3 years while in school.
Now my loans are in default, I still don't have a job or a career path.
While I was in major job hunt mode, I was rejected for being too nice, requesting too much salary, and even at Starbucks I was rejected since I came from the Corporate world instead of the restaurant industry!
During all of this, I developed severe clinical depression and contemplated suicide since my life appeared to have all but stopped.
I have started my own business and I am doing OK, but now I am being sued for some of my loans.
I don't have any savings and the only thing I own is a car which might be taken to satisfy part of the judgment for my outstanding loans.
Bankruptcy was meant to give people in dire need a fresh start, and that is exactly what I need.  If nobody will hire me in my profession that I went to school for, and my backup profession didn't pan out, I could use some assistance, not a demand for the FULL amount!
I have no idea what the future holds for me and I feel embarrassed for my family and friends that I am in this situation.  I was just trying to better myself and instead I am FAR worse off than if I had not even gone to college!  A simple life is all I want.  But the ridiculous size of my loan payments compared to my earnings make just eating a struggle.  If it were not for friends and family I would not be here today, but I am tired of being a burden.  And sometimes the only way I can stop thinking I am being a burden is to .....
Thanks US Government and Sallie Mae for turning a creative, intelligent, funny, & athletic human being into a suicidal piece of societal detritus. At least they will have to write off my loans when I am gone.

Meredith

I went to law school specifically to study environmental law so that I might work in the public interest to save our resources for future generations.  I attended Vermont Law School, where I was only able to attend because of the availability of student loans.  When I graduated, my debt was nearly $100,000.  When I first graduated, I took an entry-level position at a small non-profit, and I was immediately forced to consolidate my loans because I could not have afforded the payment otherwise.  When I consolidated, in 1996, interest rates were high, so I became locked in at 8%, which the loan company told me was a good deal, as interest rates could be as high as 12-15% or more if I accepted the "floating" interest rate.  Since I needed some stability and predictability in my monthly loan payment, I locked in at 8%.  Now that interest rates are lower, I've tried everything to find a way to lower the interest rate.  And for ten years, I've been paying a huge student loan payment, and I still have another $60,000 to pay off! 

I've stuck to my guns on doing public interest environmental work, so I have continued working for state government or non-profit organizations, and I currently make less than half of what starting associates make at law firms.  But, as a result, I have no savings, next to nothing in my retirement account, and I've not been able to purchase a home.  With the real estate market spiraling out of control, my chances of being able to afford a home now are next to nil.  I am absolutely outraged that this country allows people who simply want to better themselves, and in some cases, help to better the world, and instead of helping these people to make a contribution, we are penalized and financially crippled for a lifetime.  It is absolutely criminal in my mind.  What can I do to help bring this issue to light?  I just saw your editorial in the Baltimore Sun, and I was so relieved to FINALLY see that there is an organized movement on this issue.  -Meredith Lathbury, Vermont Law School, Class of 1996, non-profit environmental attorney.

Richard

I was admitted to one of the top 14 law schools in the country. And while I did well there I was forced to take out $150,000 in student loans. I know that is a lot of money but I figured this is prestigious, I can get a job making six figures. 2 years after graduation I was still unemployed (I had above average grades but I for some reason no one wanted to hire me). While collection notices came in I just ignored them, figuring the government would have some program for those of us who couldn't afford these extortionate rates. I filed for bankruptcy (which got rid of my 50,000 of credit card debt) which did nothing to stop the loan officers from the DoE. As it stands now I owe 412,329.57 (they expect monthly payments of nearly 4,000) and I am still unable to find a job. I am screwed, I think I will probably kill myself.

Frank

I graduated from law school in December of 97. I have paid on my student loans off and on over the past 9+ years and have paid back an estimated $75,000 on a loan that when I graduated was a little of $100,000. When I last checked the pay off amount it was over $135,000 and that's with paying $75,000 + over the past 9 years. I owe more on it now than when I took them out !! One of my loans is in default, they claim I owe them $23,000+ (which somehow jumped from $17,000 in a span of about 30 days) My two other lenders are close to defaulting and I am unsure if I should just let them default. I mean whats the point of paying on these things if you own more on them after 10 years then when you started. Who cares if I owe this money after I die of old age. I am self employed and all of my clients either pay in cash or write a check so the chances of them getting money from a garnishment is low. If after several years of not paying these blood suckers anything wont they eventually roll over and offer you some type of settlement ? I spoke to a friend from law school about 2 years ago and he had defaulted on his loans and he claims they offered him a buy out settlement. He did not own a house at the time, had no real bank account, or car or anything of any real value, he was self employed and worked out of his Dad's office which was in his Dad's name. Is this tactic workable ? Simply give them nothing for several years if needed and wait till they know they are not going to be able to collect then ask for a settlement amount ?

I don't advocate suicide, but interesting that dying
is the only way to relieve you of student loan debt.
Don't you think?

Debt Collection Company Uses Fake Courtroom to Frighten Consumers Into Making Payments

File this under "why should anyone be surprised that debt collectors use illegal tactics to threaten consumers into making payments"?

From the Pennsylvania Attorney General's office:

Attorney General Tom Corbett today announced that a consumer protection lawsuit has been filed against an Erie debt collection company accused of using deceptive tactics to mislead, confuse or coerce consumers - including the use of bogus "hearings" allegedly held in a company office that was decorated to look like a courtroom.

Corbett said the civil lawsuit was filed by the Attorney General's Bureau of Consumer Protection against Unicredit America Inc., with corporate and business offices located at 1537 West 39th St., Erie, also identified as the "Unicredit Debt Resolution Center."

"This is an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments or surrendering valuables to Unicredit without following lawful procedures for debt collection," Corbett said. "Consumers also allegedly received dubious 'hearing notices' and letters - often hand-delivered by individuals who appear to be Sheriff Deputies - which implied they would be taken into custody by the Sheriff if they failed to appear at the phony court for 'hearings' or 'depositions'."

These fake courtrooms were used to intimidate victims into giving Unicredit access to their bank accounts and even surrendering vehicle titles and assets. Unicredit must have hired a few unemployed theatre graduates to do the set design because the description of this fake courtroom sounds like they covered all the details to make this look real enough to fool a lot of people. I would love to see photographs of this mess:

The fake courtroom allegedly contained furniture and decorations similar to those used in actual court offices, including a raised "bench" area where a judge would be seated; two tables and chairs in front of the "bench" for attorneys and defendants; a simulated witness stand; seating for spectators; and legal books on bookshelves. During some proceedings, an individual dressed in black was seated where observers would expect to see a judge.

I reported in June about a bill collector who threatened to blow up a man's house for not paying his $308.09 Verizon cell phone bill. I knew then that this was just the beginning because $308.09 is chump change to the $300,000 some graduates owe for their college and graduate school education. If someone's life could be threatened for that small amount, these debt collectors are capable of anything to get their money.

If any of you have been scammed by Unicredit, you can call the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online consumer complaint.

Circumventing Credit Reform on Campuses: The Student Loan Debit Card

What a scam, indeed, Manatee Joe!  We are all willing to admit that most of us were idiots when it comes to personal finance when we began college (and moreso when law school began).  When you're 18 and you pull out a loan to go to school, you understand that you have to pay it back, but you don't really understand what that means.  For example, most student don't realize how interest is calculated:


Loan Balance: $50,000.00
Adjusted Loan Balance: $50,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years
Minimum Payment: $50.00
Total Years in College: 4 years
Average Debt per Year: $12,500.00

Monthly Loan Payment: $575.40
Number of Payments: 120

Cumulative Payments: $69,048.28
Total Interest Paid: $19,048.28


Did you realize that when you were 18?  Did you know that interest would be be nearly half of the loan???  And that is if you pay the loan back in 10 years...

Another thing that you probably didn't understand when you were 18 is "credit."  Remember being stuck out in the rain and you'd see a tent set up in the Quad with umbrellas--like a reverse Oasis?  You'd approach the tent, and the hunky slightly older male with the Discover t-shirt tells you that you that you could have a super mega sized umbrella with your school's logo on it--if you fill out a form for a credit card.  He even throws in a bag of M&Ms--cause you flirted with him.  Then the credit card comes in the mail, and you may or may not know it's evil--but you charge $500 on it because it's so easy to use credit when you don't have cash on you.  And who has cash in college anyway?  And you are shocked and appalled when the balance is $500 a year later after you pay $100 every month?

Yes, in America, those in pursuit of higher education are often times most lacking in common cents.  Even though they are adults, having been insulated from the real world until college, they make stupid financial decisions that impact their entire adulthood.

Credit Reform has made it harder to market credit cards on college campus--but we all know that the financial institutions will not stop in their immoral and apathetic slaughter of students' lives for the $ake of the almighty dollar.

Here's the new plan, give students debit cards with the Mastercard logo on them, so they can more conveniently (read: easy and quickly) spend their student loan money:

Soon after they arrived on campus, more than a million college students across the country received a welcome letter and a plastic card bearing a MasterCard logo from a little-known company called Higher One:

"Meet your new best friend on campus," the letter reads. A school's emblem is featured in the letterhead - and even on the card - and students are urged to activate their accounts quickly.

But isn't this a credit card? How is this allowed post-Credit reforms?  No, because they are loan debit cards:

These cards, however, are not subject to the sweeping reforms that took effect this year and sought to curtail similar relationships between colleges and credit card issuers. Meanwhile, students complain that the loan cards are riddled with high fees, and they have organized protests at several campuses.

Pre-campus debit cards, the student loan payments would pay your tuition, then the remainder would be distributed to the students to put in a bank account and allocate as needed for living expenses.  Higher One takes the hassle out of this process by sending you a debit card which makes spending the money super easy.  They even encourage you to open up an account with Higher One for comfort and ease.    What's so wrong with that?

Well, the very practices that were banned are being circumvented with this new debit card:

Higher One charges students a $19 monthly penalty for accounts that aren't used for nine months, a practice now banned for credit cards. On its Web site, rival PNC Bank tells schools that setting up tables on campus to market its product to students may be required for a successful program - this is another tactic that was restricted under the credit card law. The legislation also requires colleges to submit their contracts with credit card companies to the Federal Reserve, which must issue a public report. Loan cards are not included.

Penalties for non-use?  This is arguably worse than a credit card that you sign up for and put away and forget about.  It's forcing you to spend your money.  I, for one, used to take the full amount that was left over and pre-pay my rent.  Then I would work for my spending money.  So, I would have been one of the people that was penalized for non-use of the debit/loan cards.  I have a feeling that this card will cause many students to zoom through their funds, since Mastercard is accepted everywhere, and run to the Financial Aid Office for emergency loans.

The business model has translated into booming sales for Connecticut-based Higher One. Its loan cards have yet to be widely adopted in the Washington area, but the company has signed up 675 colleges across the country. Higher One raised $124 million by selling stock publicly this summer, and sales in its most recent quarter reached $27 million, more than double from a year ago.

More than three-quarters of that money came from the fees it charges merchants and students. Higher One chief executive Dean Hatton told investors last month that the success of the business depends on signing up as many students as possible.

Blood money.  The young citizens of our country are dead before they hit the ground because of mounting debt.

When Corporate America dumped toxic chemicals into this nation's rivers for the sake of saving a few dollars, we cried foul.  Corporate America was the direct cause of irreversible environmental damage and still makes cost/benefit decisions that hurt Americans in the long run.  We asked and we still ask that Corporations be responsible for the damage that they cause.  Do we have to wait until the day that we walk over young, able bodied, educated people sleeping on the street before someone asks Corporate America to take responsibility for financial destruction of countless people?

Not Rich At $250k - Great Post At the Legal Dollar

I haven't been following the story about the UChicago Law professor with a doctor wife who complained in a blog post about not feeling rich even though his combined family income is more than $250k. The professor took down his post after getting a ton of flack for his whining when so many people would kill to make even a fourth of his family's income, but a BIDER reader gave us the cached link to his post which you can go to here.

When I first read the post, I immediately thought to myself, this guy doesn't feel rich because he probably owns at least two luxury cars and a McMansion in a very wealthy suburb of Chicago with more space than his family actually needs. In short, I could tell from the blog post that like so many lawyers who win the job lottery and end up in Biglaw or teaching at a top law school, this professor and his family spends well beyond their means even when they earn more than most of us could ever dream of.

The Legal Dollar proves that my initial conclusion about this law professor to be correct with a post that explains the full story behind this professor's lifestyle and the total amount of student debt he and his wife still have 12+ years after graduating from law school. This professor and his wife still owe more than $500k in student loans. Don't feel sorry for them. They should have spent their first several years out of school focused on paying off their loans instead of taking out more loans for their McMansion, but that is a mistake that many Americans have made. I have heard so many stories of seemingly upper-middle class families who lose everything because most of what they have was bought with credit cards and loans. I personally know people who make $100k but still struggle to pay the bills because they HAVE to have that nice apartment in Manhattan even if it means paying triple the amount of a smaller apartment in Jersey or the Bronx:

...Some commentators have been critical of the Professor, but let's take a
look at his situation as a way for young associates and those considering law
school to gain insight into what their life will be like if they are lucky
enough to win the law school lottery and earn top dollar. I previously
talked about why 145K/year does not go as far as new law grads think it will, but now we can get an example of what life is like for a lawyer more than 10 years out of law school.

First, read the articles linked above and let's set the context. The Professor is a 1998 graduate of law school and spent time at Kirkland & Ellis (which typically pays top dollar.) He is also married to a doctor who apparently also makes at least a $100K/year contribution to the home.

The first thing that I note is that although the Professor has been out of
law school for 12+ years and spent time at K&E, he and his wife still have
more than $500,000 worth of student loans. We don't know the exact split
of who brought what debt to the marriage, but the existence of the debt even
after 12 years in practice should help disabuse law students of the unrealistic
idea that they will somehow just "pay back their student loans in 3 years or
so." Here's someone making top dollar with a wife working a high-paying
job and they still have $500K in loans after 12 years - yikes!

For $500K in loans, assuming an interest rate of about 6.8%, they pay
$34K/year after taxes (most likely about $51K/year pre-tax) IN INTEREST
ALONE! It's hard to know what the actual total payments are, but figure an
additional 20K/year after taxes has to go to principal (about 30K before
taxes.) This means that about $80K of their pre-tax income goes to loan
payments.

What's my point? Student loans are just a monkey on your back that you will be carrying for decades. The Professor has been carrying his for 12+years - and will probably be carrying it for 20 more. For those considering law school, recognize that this means you - even if you win the "good job lottery" that is harder and harder to win these days.

Second, we note that the single biggest expense for the Professor and his
wife are TAXES! More than $100K/year. In my experience, potential law students - and even young associates - are consistently underestimating just how big a bite taxes take as your income increases. For example, remember those things like personal exemptions and loan interest deductibility that you get to deduct at lower incomes? Well, they disappear when you go higher. Also, the Alternative Minimum Tax (AMT) starts to take a much bigger bite. But it's not just federal income tax - it's state income tax, Social Security, and Medicare taxes (FICA), too. Right now these probably consume about +40% of the Professor's income.

...Third, the last thing that struck me about the articles is that the Professor mentions that his second biggest expense is his mortgage - and that it is less than $100K/year, but more than his student loan payment - and that his property tax is about $15K/year. According to Bankrate, the P&I payment on a $1.5M home loan over 30 years at 5% is about $96K/year. $80K represents about a $1.3M home loan.

Also, I am generally familiar with the Chicago real estate market and (although some suburbs deviate and are more expensive) a home that requires about $15,000/year in property tax probably costs somewhere in the $1.2-1.7M range.

This leads us to two points: First, even though the Professor has been out 12+ years and his wife works as a doctor, they probably don't have a large percentage of equity in their home. Second, the the Professor owns too much house. The total housing expenses including mortgage and tax are near to or in excess of $100K/year - which is frankly too much.

In summary, even if the Professor and his wife are paid $400K - as some commentators have suggested - they are most likely out about $100K in income taxes, $100K in mortgage and house taxes, and $80K in loans. That gets them down to about $120K, which after private school for the 2 kids (probably about $30K/year), a 401k contribution ($33K/year), and some base living expenses
for food, utilities, cars, etc (figure $3000/month = $36K/year) - the Professor
and his wife are left with a total of $21K.

This should be a lesson for anyone who still thinks that taking out $100k+ in student loans is a good investment even to go to a good school. Unless you are willing to live frugally for a decade or longer, you will have the student loan monkey on your back for the rest of your life, even if are lucky to earn in the six-figure range.

We all want nice things and to live comfortably, but there is a point when some people just become flat out greedy and when they hit a rough patch, they aren't willing to downgrade to a smaller house or a used car. They'd rather live on credit and pay off hundreds of thousands of dollars in loans until they die before giving up the luxuries they've become accustomed to. That is not the way to live. Unfortunately, people aren't realizing this until it is too late. This seems to be the case with this UChicago professor. Don't feel sorry for this guy, but do realize that a six-figure salary does not mean you are living the high life when you have six-figure student loans to pay back and you expect to send your kids to the best private schools, colleges, and graduate schools.

1992 Temple Law Grad Can Afford to Work for Free!

Can you?  Cheryl Jacobs has been licensed to practice law for 18 years.  She was laid off in 2008 and decided to help the Philadelphia community by defending victims of predatory lending.  Apparently, she's had much success.  When I say "success"--I don't mean money. I mean the type of success that makes you feel like a good person:

"I charge my clients very little or nothing at all," she says. "They can't afford to pay me. If you can't afford your mortgage, you probably can't afford a lawyer."

Although Jacobs, who is divorced and has a daughter, is working harder and making less money than ever before, she has never felt happier.

"Why do I do this? When the mediation works, when I know I've kept somebody in their homes, the feeling is so amazing," she says. "I know how I'd feel if someone was in danger of losing my home and someone helped me stay in it."  

This story was intended to be a feel good story, but I see it differently.  Many people go to law school to make a difference, and Ms. Jacobs is certainly doing that.  However, the ability to make a difference while keeping your head above water financially is a luxury that too many recent graduates cannot afford. I do not presume to know what she paid for law school or whether she still has loans.  I tried to look up the history of tuition at Temple Law, but that information is not available on the web.  However, if we use this chart of the average cost of Public Law Schools as a guide to what she may have paid for tuition back in 1989 through 1992.  I know that Temple Law is private, but notice that tuition in public law schools have quadrupled since 1992.  So, if students today owe roughly $120,000.00, then Ms. Jacobs likely only paid $30,000.00--a reasonable sum which may be paid off by now.

So, once again, it comes down to the money.  You may not care about the cost, because you want to do something good for the world.  However, lemmings must realize that tuition makes your do-good dreams cost prohibitive.

For Your Listening Pleasure: Student Loan Debt Surpasses Credit Card Debt.

Thanks, BIDER Tipster!
I always thought a Pell Grant was a joke... even when I went to college. 

$848,028,384,295: Student Loan Debt Clock

Mark Kantrowitz of Fin.aid has set up a clock, much like the U.S. Debt Clock near Times Square in Manhattan, measuring the amount of private and public student loans piling on the back of young Americans.

This clever feature "takes into account both new loans being made and old loans being paid off, which decrease the total amount of debt outstanding. The reason the clock grows by a couple thousand dollars per second is simple: Current students are borrowing money much faster than former students are paying it back."
Scary, right?  I'm hoping that the digital nonsensical clock on the side of the former Virgin Megastore in Manhattan can be used to publicly display the Student Loan Clock.  Since Virgin closed, I'm sure it's available.

Look!  It's perfect!  And it has space for growth.  After all, "in 2010, Kantrowitz estimates that the government will make about $100 billion in federal loans -- and receive just $22 billion in principal payments, leading to a net increase of $78 billion per year. That doesn't even include private loans."
So, it will need to be a big clock, a really big clock.

Thanks for the tip, friend!

Why ScamBloggers Are Important: The Media Isn't Doing Its Job

Angus the English Bulldog knows to run away from student debt. (I love this photo!)

We let the other scambloggers respond to yesterday's NY Times' "news" that legal jobs are being outsourced to India. Angel and I are frankly too tired of being told "news" that we reported many times earlier this year. Just check out our list of links covering Indian outsourcing below:

Canary in the Legal Coal Mine: T14 Temp Jobs in India
Job Offers Galore in Bangalore
I'm Green With Envy
You Are Not Alone. England Suffers Tooooooooooooooooo!
I Borrowed This From Another Scamblogger
Stop Legal Outsourcing on Facebook. Join Now!

If things couldn't get worse, I came across the article, 7 Reasons To Go Back To School Now, at the San Francisco Chronicle website. Unless you are a rich retiree in the Bay area with nothing else to do with your millions other than go back to school, for goodness' sake do not listen to this type of advice. Just yesterday, Scammed Hard reported on another one of these types of articles on AOL that listed attorney/lawyer as the #2 job in their list of 10 jobs that paid $50 an hour. Are these writers simply clueless about the state of the nation or are they working for a loan company or for-profit website like Gina Pogol?

None of these articles mention a single thing about debt and the average amount of loans one must take out to get a graduate or professional degree. Do they realize that there aren't enough new jobs being created to match the thousands of new graduates each year or that Paul Krugman and serious journalists are worried about "Japanification" and a lost decade? Do you want to take the risk of taking out $150k in student loans when there aren't any jobs guaranteed by your school or our government when you graduate? A BIDER rule we use a lot here is to not buy things you can't afford because credit cards and student loans are akin to death. A $150k degree counts as something you can't afford without taking out loans for most people. Don't gamble with your future.

And shame on journalists who write shit like this.

Tips from a JD: Escape the Shackles of Debt Using Common Sense!

I received this letter from a BIDER reader who was successful in ridding himself of the Sallie Mae monkey on his back.

Angel-

was looking at your blog today as i like to do from time to time. it is quite entertaining. :)

then i saw this article on yahoo and thought you might want to share it.

i would agree with it's basic premise--focus on highest interest debt first and concentrate on paying that off first with all excess money.

i knocked off a total of $47k of private loans in 18 months. now i am focusing on the fed loans, and in just 12 months (since the layoff last year) have gone from $62k down to $29k this past week. I should be done with ALL law loans by this time next year.

granted i still don't have cable tv or internet service at home, and drive a '92 honda hatchback, but i won't be paying when i'm 60 years old, for what may be perceived as a huge mistake i made when i was 25. :)

Good for you, BIDER reader! I hope that BIDER readers learn from your example. Unless, they up and move overseas and avoid repaying it all together. That's probably a better option!

Law Grads are Just the Tip of the Iceberg

Sometimes, we at BIDER become a little self-involved and forget about the victims of other graduate programs--or even college.  I received a message from a student loan victim (on my facebook, you should definitely add me) and I thought I would share it.  It's a long email, but much like a 5 car pileup on the highway, you can't help but look:

Today I am 46 years old. I was 22 when my father died suddenly in 1985. I had no idea what I was getting myself into when I took out student loans to finish my BA at a college in Michigan. Let me preface this by saying I have never been in default and I have always believed in paying back what I borrowed.

Telling my story is important because many people do not understand how the student loan business has turned into a predatory lending industry that rivals Wall Street. There are no consumer protections, and no limits. I have come out of hiding in the hopes that people will read this and start to understand why we need help.

I was majoring in theater and wanted to teach, but I was advised by the college to get a "real career", so I took out more loans and added a BA in Psychology.They told me not to worry, I could pay these back. I worked three part time jobs, and moved off campus. In 1985, there was no" loan counseling", there were only appointments for loan signing.

When I took out student loans I was going through chemo for cervical cancer with no health insurance, my father's sudden death in 1985 and my family went though being very wealthy to losing everything and being left a half a million dollars in debt.Could I have switched schools? Quit school? I don't remember what I was feeling or if I read every detail of the loan; I think I was just trying to get through my grief and my chemo a minute at a time.

I went on to get my Masters in Counseling Psychology, which was paid for by my employer,Thank God. I found to my dismay, that I just couldn't make enough money on a salary of $25,000 as a counselor to make the loan payments and take care of everyday life. My cancer in 1986 left me thousands in debt. In 1991, ended up filing a chapter 13 for my medical bills. Subsequently, a woman at Wachovia Bank noted this, and accidentally put my loans in default instead of deferment.

My life became nightmare for the next seven years.This was before the regular use of computers. I was on the phone for hours on hold, but I couldn't get anyone to talk to me. Creditors treated me like a leper. I was actually told by a well meaning person that" Your loans have been bought and sold so many times, they are probably in a shoe box in someones closet."

Finally in 1995, after getting nowhere, I contacted the US Dept.of Education. I literally sent them a shoebox full of notes about my conversations and letters I wrote trying to ask for help. They eventually tracked them down and subtracted the penalties, but not the interest, so my $25,000 turned into $45,000.

I tried to make the payments on a counselor's salary, even on an income contingent plan or any plan I could find, but it was too much money on $28,500 per year. I made payments whenever I could afford to but they never seemed to count because they were never enough to cover even the interest. My payments were more than my rent! I have deferred and been in forbearance so many times it's not even funny.

I had to declare bankruptcy again in 2000 due to lack of finances and everyday living, and ongoing medical issues with my cancerous nodules on my thyroid which prevented me from working in for 7 months in 1999. Again, deferment, hardship forbearance, more compiling interest.

I wanted to go into the NHSC (National Health Service Corps) which is a program for health professional to go into public service into rural, urban, low income areas and prisons to work for a period of time in exchange for loan forgiveness. I had a license in Michigan, but they changed their policy and you had to already have your national independent license.

I couldn't afford to stop working to get my PhD, so after 10 years of getting nowhere and the threat of default, I went back to school at age 41 in 2004 and got my MSW so I could be in the NHSC. This was not something I wanted to do, but I wanted to get my loans repayment and I already had devoted my life to public service, it seemed the logical thing to do. Another Masters would increase my loans, but I could pay it back through this program.

During this time, I was able to buy a house on an FHA loan, but was one of the victims of the refinancing scams of 2006, and although my house went into foreclosure, I was fortunate enough to sell it in a short sale through Freddie Mac.

Right after graduation I was able to secure a job in Arizona for the NHSC. I had to go out there as they make it extremely complicated to get accepted, and Michigan virtually had none of these jobs with a high enough need number to guarantee loan repayment. I had to reconsolidate my loans were now 140,000.

Finally! A Money Back Guarantee, but Not for Law School

Lansing Community College is offering what we've all been asking for, a money-back guarantee--but on a 6 week program to become call-center specialists, pharmacy technicians, quality inspectors and computer machinists. The total cost of the program? $2,400. Still, I admire their intention to do right by students. You know that schools like SeTTTon Hall would never offer such a program, because they would never want to put their money where their stats are, in the TTTrash.

This article, which was forwarded to me by Tiger, offers other insight (i.e. the shit we've been harping on for the last 9 months) such as this:

The real question that families, institutions of higher learning, and lawmakers will need to confront soon is this: Have we as a society dramatically oversold the financial benefits of higher education? It's hard to argue that that's not the case. Back in February, it was reported that the $800,000 increase in lifetime earnings that The College Board and other institutions claimed was associated with a bachelor's degree had been quietly reduced to just $450,000 based on further research. Yeah, sorry about that -- and don't even think about asking for a refund.

Meanwhile, student debt loads are exploding upward along with default rates and, as I reported Thursday on DailyFinance, during the first four months of 2009, fewer than half of college graduates under 25 were working at jobs that required a degree -- and that doesn't include the huge percentage of students who drop out. Marty Nemko of US News & World Report has noted that "among college freshmen who graduated in the bottom 40 percent of their high school class, 76 of 100 won't earn a diploma, even if given 8 1/2 years."

And this is without even mentioning graduate school. Today, I was passing a girl and her friend on the street and I heard her say, "Law School." I did a 180 and chased her down. I spent about 40 minutes telling her not to go. She was shocked to hear that lawyers weren't earning what she is making now. Spread the news far and wide. If college didn't set you up financially, the way you think it should have, then MORE school (or a glorified extended college education offered by Law School) will definitely take you from zero equity, to negative equity. You will be worse off if you just "try it" so that you can say you're a lawyer at the end of the day. It's not glamorous. It doesn't pay well. And it will leave you up to your neck in late payment notices.

It's simple math, kids! Zero is better than -$120K. Or, if you took out loans for college, -$50K is better than -$170K. Especially if the chances of making more than $40K/year are slim to nil.

So, back to this money back thing. I think it's a great idea for this sort of program, but I really won't be happy until Law School close due to lowered enrollment. That will make me happy. They will never offer these programs because there is no way to predict or help your alumnae find jobs where there are none.

So, I'll just hit the streets and continue to spread the news until my dream becomes reality. Oh yah, and I love this line from the article, which epitomizes the scam we've all bought into:

Can you think of any other product that is marketed as an investment for which people will shell out six figures with no guarantee of anything -- and absolutely no recourse if the product (education) does produce the intended result (a well-paying job)?

Nope. I can't.

See full article from DailyFinance: http://www.dailyfinance.com/story/investing/college-offers-some-students-a-money-back-guarantee/19432813/?icid=sphere_copyright

(written by Angel, posted by HardKnocks)

UMASS Dartmouth School of Law: The School I Love to Hate

Last I checked, BIDER has plenty of readers in Massachusetts.  I can only assume that the readers are keeping the message to themselves.  I dissuade, or attempt to dissuade, at least one 0L a week.  Really.  That's in person too.  I think it's my duty. I will take time out of my day to speak to a person at length about the misery that my career choice has brought me. I even did so when I worked in Big Law because I knew that I was one of the lucky few.  BIDER readers in Massachusetts must just read the blog and keep the news to themselves so they can see what will happen when the lemmings graduate and join the ranks of the unemployed.  Honestly, it's like failing to tell someone that their aspirin is laced with cyanide when you know it is.  What is wrong with you guys?

I ran into this story on-line and I am truly upset.  I have covered the opening of UMass Dartmouth a few times and I have always maintained that the state's decision to jump on the capitalist bandwagon, to the detriment of its students, is tragic.

Now, they are getting free press from the Wall Street Journal:

Take, for instance, the situation at the University of Massachusetts, Dartmouth. According to this Boston Globe article, applications and enrollment at the state’s first public law school have “surged” since the merger of UMass Dartmouth and the Southern New England School of Law. According to the Globe, the bump in interest serves as “an early sign that the controversial merger is off to an auspicious start.”

According to the story, the new school, now known as the University of Massachusetts School of Law, received 462 applicants for this fall’s incoming class. It’s more than twice the number who applied last year, when the school was a private institution. The size of the first-year class is also doubling to 155, and the caliber of the applicants, at least as measured by undergraduate grade point averages and LSAT scores, have risen — all despite the fact that the school has yet to be accredited by the American Bar Association.

Here's the kicker folks... the school is not yet accredited.  WTF???

“Students are voting their confidence in the fact that we can probably get the accreditation,’’ Jean MacCormack, chancellor of UMass Dartmouth, who plans to seek the designation in 2012.

So, I can look into my crystal ball and see that these 155 students will graduate in three years with $80K+ of debt and no job.  Mark my words.  I think that law school is a risk if you go to anything outside of the T14 T8.  With no accreditation to date, this sewer is bound to be a TTTTrash bin in 2012. And to make it worse, it doesn't see like it's all naive 22 year olds that are going to this school:

The Globe calls the new students “a nontraditional group,” ranging in age from 21 to 59 years old. More than a fifth will pursue law degrees part time while continuing to work. And perhaps taking a page from the folks out at UC Irvine, nearly 40 percent will receive financial aid, including 25 students awarded a fellowship that covers half of the tuition for committing to four years of practicing public service law upon graduation.

25 of 155, is not a majority.  It's not even close.  And, I would venture to guess that these fellowships are in the form of bait and switch financial aid--the kind you lose after you didn't maintain you GPA first year.

Massachusetts should be ashamed of itself.  There is no need for a TTTToilet bowl law school in SE Mass. The market is amply serviced by BU, BC, Harvard, etc. etc.  Enough already.  Soon, everyone will have their own personal lawyer.  Much like a cleaning lady, they will be underpaid and undervalued.  $75 to clean an apartment?  I'll review your mortgage application for you for $60.  What's the difference?

This Lawyer May Help You!!

I had a lovely conversation with Mr. David Abrams, a BIDER reader and an attorney licensed to practice in New York and New Jersey, who is willing to help.  On a contingency, David might be able to get back some of the money that you have paid in student loans. I know, it sounds crazy, but he has been successful more than once. I think, for those BIDER readers who are drowing in debt (i.e. everyone), it's worth giving him a call.  Remember, he won't take any fees up front.  He works on contingency. Call him.  I wouldn't normally advertise an attorney's services, except that BIDER readers need the type of service that he is offering. I wish you all the greatest of success.

David Abrams, Attorney at Law

299 Broadway, Suite 1700
New York, NY 10007
tel. 212 - 897 - 5821
fax 212 - 897 - 5811

Lawyer Asks Why People Are Still Going to Law School

Happy Independence Day! When you're a law graduate like Griffin Hall with over $100k in students loans, the term independence takes on an entirely new meaning. Some of us are still enslaved to the student loan companies and will be even after death.

I came across a blog post by a lawyer asking why people are still willing to take on so much student debt to enter a depressing and shrinking profession such as law.

I'm am a lawyer. For better or worse. I like my job. I'm not so sure I liked the route it took to get here. But I'm a lucky one. There are many entry level jobs in law that pay about $40 grand a year with horrible benefits. These are the jobs that will suck your will to live. Long hours. Living paycheck to paycheck in a studio apartment paying $600 a month on your student loans even after you've deferred as much as you can (if you were on a full payback plan you would be paying more than $1,000 a month on student loans alone). Mind numbingly boring work (reading and responding to discovery is not rewarding work). Crying about how important it is for the government to just forgive a huge chunk of your loans. We have raised a nation of imbeciles.

Does anyone know the value of a dollar any more? Does anyone realize that when you borrow $150 grand for law school you are going to be expected to pay it back?

I ran the numbers for law school and they worked well enough when I went earlier this decade, as long as I went to the state school and lived at home. I used my savings to pay my $12,000 a year tuition (on average) for the three years I was in school. I graduated with no debt. I factored in the fact that the average salary for graduates at my school was around $55,000. The numbers worked close enough. The numbers didn't work by spending much more than what I did.

I was a little shocked at the ease on which my classmates took on new debt. They lived life to its fullest--there was no sacrifice. The time to pay the piper was still years into the future. I know one person who even paid for his wife's engagement ring with his student loans. Simply incredible.

We have raised a nation of imbeciles.

Why is our society so immune to the danger of debt? Why are they unable to calculate a simple cost benefit analysis and apply that to their situation? Is it because our parents have failed us?

This lucky bastard went to law school back in the day when tuition was only $12,000 a year. If you look at some of these same state schools today, tuition costs have tripled or quadrupled. Law school is no longer a safe or good investment for anyone, even the T14 students. Like I've said before, $150k debt is still $150k debt whether you go to Harvard Law or Cooley Law. Either way, if you don't end up in Biglaw and you have that much to pay back, you are basically screwed.

The guy who paid for his wife's engagement ring with his student loans is an idiot, but he should not be used as an example of the typical student loan victim. That's like using a few people who abuse the system to label everyone on welfare and food stamps as "welfare queens". We all know that is not the case, especially in this depression with nearly 20 million people out of work or underemployed. Contrary to what some well-to-do idiots in the beltway believe, these victims are not "spoiled brats' who are unemployed by choice. The same goes for most students who take out loans. They are not blowing their student loans on designer clothes and trips around the world. They are using it towards books and tuition. What kind of nation vilifies young people for getting an education? Maybe they are gullible to believe their school's employment statistics. But I don't believe someone is idiotic to invest in an education if they believe that it will open better opportunities than a high school graduate working at McDonald's.

And in all of this, one thing angers me more than anything: The thought of the government forgiving student loans. Actions have consequences, and the complaints of people with student loans that they deserve special treatment and sympathy because they have student loans strike a nerve. The state's legislature, in all its wisdom, has passed special loan forgiveness measures for people working for the government. Thankfully, in all its wisdom it is broke and has absolutely no funding for it. Another example of governments out of control.

I definitely have some resentment for people with huge student loans because they spend money like it comes easy (even when they're out of school). I sacrificed, I didn't go to ball games, I didn't eat out, I didn't do a lot of things they love to do. And I should be rewarded for that. My bitterness will grow if they were in some way able to weasel out of the responsibility for their spending habits.

Since a college degree is like a high school degree was to our grandparents, it is reasonable to believe that a graduate or professional degree is the ticket to better, well-paid job opportunities. For those of us who don't come from a rich family, we're damned if we don't get a higher education and we're damned if we do get an education using student loans. People need to stop blaming the students and start blaming the ABA for accrediting more law schools and school administrators who decide these outrageous tuition rates to pay their $300k yearly salary while blocking poor and middle class students from receiving an education without taking out six-figure loans. We want the same things this lawyer received less than a decade ago at a fraction of the cost. He got a break. The banks got a break. But our generation and the next generation of young people who only want an education and decent paying job are vilified as irresponsible by those before them who were privileged to receive a low cost education and good paying jobs?

But my ultimate point is this--people deserve to be rewarded for my sacrifices. For saving money, living frugally, for not taking on student loans. And I will be pissed off if the rules change because that makes me (and those like me) the sucker. That means I should have been doing what everyone else is. I should have been living it up on federal loans this whole time and then deferring payments.

I'm not saying I want people with student loans to suffer. I just want them to have to pay back what they've borrowed. And I want the government to stop making stupid loans for education. They are enabling all of these people.

But back on point, I'm not sure why anyone wants to go to law school. Maybe if you have a large scholarship. But at these prices, you have to realize that law schools are selling you a bill of goods. They are ripping you off.

I agree that law school is a huge ripoff and more prospective students should realize this with the proliferation of law scam blogs. I also agree that the government is enabling people because they have deals with their friends at the loan companies and for-profit schools. There are many arrogant 0Ls who believe they will beat the odds. But there are also many more students who blindly went to law school without warning believing that it would lead to a law firm, nonprofit, or government job. Most of the people my age have lived frugally, worked while in school, and received scholarships -- and they would not be in this position if schools were still charging $12k a year instead of $50k a year. Stop blaming the victim and be glad that you got out of school with so little debt. And have a little compassion for those of us who are unlucky to be part of a generation who was conned, fooled, and suckered into spending so much money on an education and graduating in a depression with no jobs.