I know my past posts have related to this, but this is the most debt that I have ever heard of. In this article, a couple from Seattle graduated with a combined $500,000 worth of debt. I believe school loans can be good, as I stated in this post, but in this case, I’m not so sure they are worth the debt.
The couple has two children and a combined annual income of $80,000, and they couldn’t even make the initial payments on their loans.
“Of the 3.4 million federal-loan borrowers who entered repayment in 2008 (as the economy slid into recession), 7% defaulted within the year, the highest percentage in more than a decade. That statistic doesn’t include the thousands of borrowers who fell behind on their payments without defaulting, or those who couldn’t keep up with their private student loans.”
The article states ways to help you pay off your loan, but it also lists ways to defer it and what happens when you don’t pay. You should’ve realized that $500,000 is TOO MUCH!