From a recent WSJ article:
Tracy Paulsen, a 34-year-old lawyer from Wenham, Mass., said she recently moved in with her aunt, has put off marriage talk with her long-term boyfriend and depleted her individual retirement account—all so she can get a handle on more than $200,000 in student loans outstanding, most of which paid for law school. “It’s a noose around my neck that I see no way out of,” she said.
I feel for this woman. I can’t imagine having that kind of debt hanging over my head.
I don’t have an easy solution in mind. Maybe freeze the debt so that it incurs no more interest. Stretch the payments out, possibly.
The article doesn’t mention how much the original debt was That Miss Paulsen had accumulated. But, even if it were $100,000′ her monthly payment would be $277 for thirty years with NO INTEREST. That’s a pretty hefty obligation.
The bottom line is that college students need to do some due diligence before they take out these massive loans.