Tuesday, January 18, 2011

Default: the Student Loan Documentary

The entire documentary can be seen at www.defaultmovie.com. This is a must watch for all those who are thinking about attending college with a high price tag. Many college students believe that student loan debt is an investment which will lead to higher earnings in the future. While this may be true it is imperative that student loan costs be discounted into future earnings. And then there is the risk of default which makes one's life much more difficult.

For prospective law students, read the thread on JD Underground where a Santa Clara law 1L is dropping out after his first semester. As he leaves with only $15,000 in student loans the posters rejoice in his decision. This shows how much fear there is amongst students regarding student loans. I have been seeing more and more 1L's dropping out as the word gets out as to how difficult it is for new JD's. As Thomas Jefferson said, "information is the currency of democracy."

Until next time,



  1. You and all the other scambusters need to be cannonized.

  2. Is not it ironic that the US is called the "land of the free"?

    Maybe European students would go similarly on a shopping spree if forced. They are not forced to do this.
    Yes, these people should have looked at fine print, prospects etc. Partially, it is their personal responsibility.
    Partially, it is the responsibility of the government that it ALLOWS these institutions to market a false image, make huge amounta of debt etc.
    Not everyone needs academic education. Not everyone is intellectually endowed to receive one. Good trade schools would do a better job.

  3. I always say that the biggest beneficiaries of law schools are NEVER the law graduates, but the law firms and other employers of law graduates.

    Another beneficiary of law schools is the faculty and the administration running the law schools.

    In this capitalistic society, why would the law school industry in general make the law graduates the biggest beneficiaries, when the people running the law industry are law firms, employers of law graduates, and the faculty??

    As a corollary, college education in the US mainly benefits corporate America, who are the employers of college graduates. Education in America produces workers for corporate America, not citizens for the society.

  4. Great video Subprime! I posted a video from an older guy talking about how law school is a ponzi scheme! Defaulting on student loans will make your life hell..

  5. I dedicate this law school recruitment video to you and your blog. Keep preaching the truth! http://www.youtube.com/watch?v=3RtHywad7Vo

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