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Why the dental practitioner with $1 million in pupil financial obligation spells difficulty for federal loan programs

Why the dental practitioner with $1 million in pupil financial obligation spells difficulty for federal loan programs

Adam Looney

Joseph A. Pechman Senior Fellow – Financial Studies, Urban-Brookings Tax Policy Center

A current Wall Street Journal article informs a startling tale of the University of Southern Ca dental college graduate whom owes significantly more than a million bucks in pupil debt—a balance he can never completely repay. As he is exceptional—only 101 individuals away from 41 million student-loan borrowers owe a lot more than a million bucks—his case highlights the flaws in a student-loan system that provides graduate pupils and parents limitless usage of federal loans and ample payment plans. The end result: Well-endowed universities and well-paid, well-educated borrowers benefit at the cost of taxpayers much less well-off pupils.