How About a Hook Up?

You'd think that the Dean of your law school or your favorite Professor could hook you up with a sweet student loan deal if he runs a student loan company.... No?  I'm being naive obviously.
We spend lots of time in law school discussing ethics and avoiding pitfalls in the practice of the law or the appearance of impropriety.  But what about moral pitfalls of charging students an arm, a leg and a first born child for law school--and then reaping the benefits of the same via paycheck from Access Group?  Seems like a moral dilemma to me.  Who are your loyalties to?

A tipster alerted me to the make-up of the Board of Directors of Access Group and it reads like a who's who of the law school scam artists:


Hannah R. Arterian
Dean and Professor of Law
Syracuse University School of Law

Janice C. Eberly
(Board Vice Chair)
John L. and Helen Kellogg
Distinguished Professor of Finance
Kellogg School of Management
Northwestern University

E. Lynn Hampton, CPA
President and Chief Executive Officer
Metropolitan Washington Airports Authority

Joseph D. Harbaugh
Professor and Former Dean
Shepard Broad Law Center
Nova Southeastern University

Rondy E. Jennings
Managing Director, Public Sector and Infrastructure
Goldman Sachs & Co.

W.H. Knight, Jr.
Professor of Law
Seattle University School of Law

Leo P. Martinez
Professor of Law
University of California
Hastings College of the Law

Richard A. Matasar
(Board Chair)
Dean and President
New York Law School

Pauline A. Schneider
Partner
Orrick, Herrington & Sutcliffe

Kent D. Syverud
Dean and Ethan A.H. Shepley University Professor
Washington University School of Law

Susan E. Woodward
Founder and President
Sand Hill Econometrics

I'm sorry, but what qualifies these bastards to serve on the Board of a financial institution???  Don't you have to know finance?  I can only think that they are serving on the Board because they can herd the  sheep towards Access Group.  I wonder who else is in on this?  At my school, the financial loan office were like drug dealers, pushing Access down our throats.  At the time, I was not aware there were other options.... Hmmmm. I don't see my old Dean on here, but he may have served on the Board back then.

Anyone have any insight on why this isn't considered a problem or a conflict of interest?

I know that we throw the word "scam" around a bit much.  But how else is one to view information such as this?  I knew about Dean Matasar of New York Law Shit, but I was not aware that the vast majority of the Board Members were Deans or Professors.  I don't think that it's right.  This is akin to the Director of Acorn serving on the Board of Country Wide Mortgage.  I can't that flying and I know Fox News would have eaten that up. Why is this any different?  UGH.  The  more you know, the less you wish you knew.  Ignorance is such bliss.  To be a lemming... life must be grand when you think the world is fair.

The tipster followed up by sending me pics of these fat cats.  If you see one crossing the street.... well.... do what you think is appropriate.

Joseph D. Harbaugh

Leo P. Martinez

Richard A. Matasar

Kent D. Syverud

W.H. Knight, Jr.

Hannah R. Arterian

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?

Paul H. Kicks Ass!

I heard about this gentleman, a lawyer, who has taken on Educational Credit Management Corporation, a lender, for us all!  Why hasn't anyone thought of this??? Well, Paul is notable for many reasons, but the main one being that his writing style is rather unorthodox.  Here's some choice lines from his Petition for  Rehearing:


"Plaintiff has news for these slime ball pieces of shit, ass clown judges (Bowie, Canby, Thomas and Fletcher-this means you) that think they are going to rig the system and railroad the poor and innocent- such as blocking the discovery process of the poor that cannot defend themselves,
commit perjury in their orders and a host of other constitutional violations, and do it with impunity that is simply not going to happen in this case. You cock suckers are now on notice."

and... 


"You little bitches are not going to make outrageous lies like that when Plaintiff worked his ass off getting hired in a very tough and competitive education field, not once, but numerous times--only to have his employment interfered with by the CTC. If you motherfucking liars don't understand that, then you're not going to understand the civil unrest that will be coming to your doorstep. Fuck you and that ridiculous lie."

His writing has a way of sticking with you.  He makes a lasting impression.  Paul, I know that you've emailed me in the past and I'm totally behind you on this.  I was taken aback when I made the connection between you (my Facebook and email friend) and this Petition.  Believe you me,  I wish I could tell a few judges to suck my non-existent cock.  But why not try to be nice first?
Just a thought and I would LOVE for you to comment.