HIGHER EDUCATION BUBBLE UPDATE: Law Grad’s Ballooning Student Debt Will Exceed $1.5M by the Time He Retires.

A Touro law graduate who financed his education with a $69,000 loan in 1996 says he’ll owe more than $1.5 million by the time he retires in 23 years.

John Koch, now 46, was unable to pass the New York bar exam, despite three tries. . . . When Koch defaulted on his loan, penalties added $40,000 to $50,000 to the balance, he tells the television station. He currently owes more than $300,000. Now he is deferring loan payments under a federal program, which adds $2,000 in interest to his balance each month. As a result, he will be charged interest on interest, a debt expert tells Cable News Channel 12.

This is why heavy, non-bankruptable debt to finance education is a bad idea.