Mongo @ 65:

I am not going to go back over last nights surfing but essentially I found a takedown on the student loan thing. Say a student takes out $80k in loans. Not unheard of for an MD or JD or LLB. Limiting the payback per year to 10% means he pays back $8k the first year if his pay is the same as the loan amount. There are not many that will make that much straight out of school. Most likely less. So, the accrued interest at a lesser pay scale then goes against the original amount and at the end of the first year the borrower ends up owing more than the original loan. Pricing the common man looking for a decent education out of the market OR the cycle continues until the borrower ends up in default. I know this is neither that clear nor concise but you get the drift. More hatchets from The Zero.