Saddle Up wrote:
JCougar wrote:I wonder what the real default rate is when all these people are factored in to the total. 50%? A lot of this debt is never, ever getting paid off.
Maybe this has been addressed on TLS but I have yet to see it mentioned. What exactly happens to those who fail to make tuition payments? Are these people riddled with nasty collection calls or worse? Does anyone know firsthand?
You can basically go on PAYE or IBR and make $0 payments for 20-25 years. I've been doing this for the last year and not using deferments. There's no limit as to how many $0 payments you can make if you actually get on those plans and never make above poverty-level wages--which, if you try to support a family as a doc review attorney, you probably never will. Your loan debt might balloon to like $600-700K by that time, though. You run out of deferments after like 3 years or so, so you're better off just getting on these plans as soon as you can, and getting your forgiveness clock ticking.
Like I said, I've met countless attorneys with grey hair that have been practicing for 20-30 years and they still have loan debt. Some that I work with have more than when they started because they haven't even been able to make interest payments. If you took out loans a while ago, you weren't eligible for all these repayment plans. And this was when law school was much cheaper and the job market for lawyers was better
. The pay for shitlaw jobs really hasn't increased at all over the last 20 years or so because of massive labor saturation and lots of more conservative rulings and laws passed to make it harder to sue anyone at all. Also, insurance companies are cracking down. And a lot of stuff is governed by arbitration agreements and mediation right now, which means less work for attorneys.
Anyhow, my guess is that in 10-20 years, this loan debt business is going to start wreaking all sorts of havoc on the federal budget, and they're going to have to do something to forgive it. Then they're going to have to raise taxes on rich people like the Biglaw lawyers who "made it" just to cover the cost of all this nonsense. So people who stick around in Biglaw will basically be paying off their own loans and everybody else's. More fun for them, I guess.