With the housing market still in shambles and the stock market going up and down as erratically as Kirsty Alley’s weight, a new bubble is on the horizon: student loans. Federal student loans are given out almost as freely as condoms on Quad Day, with financial aid offices urging on more loans. And in law school, the debts keep mounting.
Alas, bring on the emergency debt ceiling measure. Of the various cuts to government expenditures, the U.S. decided to ax subsidized graduate loans, meaning that the government will no longer pay interest on qualifying student loans while a student is attending school. Thanks. Government spokespeople say, however, that students have the option to pay the interest each month. And where will this money come from? Law students in particular have to agree that they will work no more than 10 hours per week in their first year of school. Ah, yes, they can pay the interest with … more student loans.
Stewing about the absurdity of this measure. I embarked on a quest to sniff out other questionable government expenditures in the last year or so. As you watch your student loan balances escalate, keep the following in mind.
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