Sunday, February 26, 2012

One story of how law school loan debt can ruin a life

Here's an interview with a law school scam-blogger by Long Island's Cable News Channel 12 that puts a human face on the consequences of overwhelming student loan debt.  JDPainterguy is a pseudonym for John Koch, a graduate of Touro Law School who borrowed $69k in 1996 to finance his legal education. After failing the NY bar three times, he couldn't find a job that paid enough to service his student loan debt and also pay his other bills.  As a result, he defaulted on his student loans and the added stress caused his marriage to fall apart.  Because of the default penalties he incurred, his total debt has now ballooned to more than $304k. He tells the Channel 12 reporter that although he's currently enrolled in an income-based repayment program, interest still adds more than $2k to his balance each month. Mr. Koch estimates that he'll owe more than $1 million by the time he reaches "retirement" age, 23 years from now.


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