Is it even possible to have a million dollar debt from student loans?This video will be a true horror story about how someone got into a million dollar student loan debt.
Meet Mike Meru. Believe it or not, he graduated undergraduate school with $0 of debt. He got funded by his parents and worked part time as a waiter. So his life is going pretty good so far right? He worked so hard and got good grades and got accepted into USC- a very prestigious and very costly dental school. Mike wanted to be an orthodontist and things are looking good for him. Until you look at the cost of USC. Just the first year alone costs over $100k. Mike studied hard and put in the work for 4 years and got a nice dental degree. Most people at this point would go on to work as a dentist and earn a good salary but not Mike. Mike was super smart so he was able to specialize in orthodontics. Just what he wanted. Specializing takes another year or two but thats not the issue for Mike. Things started going down from here. Unfortunately Mike didnt have the same support he had in his undergrad years. He had to take out over $600k of student loans to finance dentist school. $600k can you believe it? I dont even have $2 to my name. Things do get a bit better from here. Mike gets a job as an orthodontist that pays a $225k salary. Pretty good right? Doesnt seem that hard to pay back the debt with that amount of money. Oh but it gets even worse from here. Mike took the loan with low interest rates but life just didnt like him and interest rates went up. And as an orthodontist, he had to ball out and spend big to treat himself. So he buys a nice house and a nice car. But, he still has that big student loan debt to pay right? Mike enters a payment plan where he pays $1589 a month. This may sound like hes paying back a lot but remember, theres interest on student loans. Its been 10 years and Mike has only been paying $1589 a month for 10 years straight. Believe it or not, he has not paid off a single dollar of the student loans. How? His monthly payments are not even enough to cover the interest costs of the loan. Now, he has over a million dollars in student loan debt and that number will reach 2 million with enough time. Isnt that scary? You are just throwing money into a hole and it is impossible to stop because you cant get out of student loans by filing for bankruptcy.
-The Life Formula
