Author Topic: $1,000,000 in student debt and driving a Tesla  (Read 1843 times)

ginjaninja

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$1,000,000 in student debt and driving a Tesla
« on: May 27, 2018, 07:38:55 AM »
I think the rest of the community here will literally be shaking your head at the end of this article:

https://www.wsj.com/articles/mike-meru-has-1-million-in-student-loans-how-did-that-happen-1527252975?emailToken=7de2cb8c0c7404779b4d083e4bb1e045vJm1xDw9hADzjRGOnhiPj17nV19Tuy/2EmxOOL6nS0wnizbr/YcV6qfr+wig0q3q9d4DdWkA5eG6KZAqpKLC70FHR6iuHgTViuIWoRoe4qcbnepc8L+qvBUsvYuR+Dxo&reflink=article_copyURL_share

A man has accumulated over $1,000,000 in student debt. While horrible that school is so expensive, he has been reckless with forebarances and is not treating his debt as a hair on fire situation.  The question is how did this happen? The answer is painfully simple.

Just Joe

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #1 on: June 11, 2018, 09:39:33 AM »
I wonder what he gets from outing himself like that? Look at my debt and my expensive lifestyle! I guess he could live like the average MMM'er for ten years and be debt free.

ginjaninja

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #2 on: June 12, 2018, 10:59:07 AM »
I totally agree.  From the article it looks as if he has tried to publicly fight against interest rates and his point is to show that school (dental school in particular) is too expensive.  It seems like classic complainypants syndrome.  I really don't think that he wanted to play up his spending, but how hard his life is with that debt.  The most frustrating part for me is that he has given up on repaying the debt and now will be getting millions of dollars from tax payers to forgive the loan.  But how unfortunate for him because he will have a tax bill of $700k that year.  I almost shed a tear. lol.

ginjaninja

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #3 on: June 12, 2018, 10:59:49 AM »
I also realize my level of sass in that last post may have been excessive.  I was trying to be funny.  Kind of.

therethere

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #4 on: June 12, 2018, 11:22:41 AM »
There was a post two weeks ago on this.


You'll love this guy even more once you read his bio in the college magazine and find out he goes heli-snowboarding in his free time. https://dentistry.usc.edu/files/2011/11/TroDent-Summer-2017.pdf

He also decided that being in school was a perfect time to buy a house, have a stay at home wife, and create a gaggle of kids. All funded by student loans!

But "interest rates" are the problem.....

Zamboni

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #5 on: June 12, 2018, 12:08:05 PM »
I was annoyed by the paywall on the link until I remembered that I could just sign in and read for free courtesy of my library card . . . and this is just the tip of the iceberg in the differences between Mr. Meru and me.

Meanwhile, I have friends who joined the navy to use the service to pay their way (full ride) through extremely expensive dental schools (Columbia and Florida State) in exchange for a few years of keeping sailor teeth in good shape . . . this country has so many wonderful options and opportunities, but there are always going to be stupid people who them claim they are actually victims and not just plain idiots.

Edited to add: Fuck this guy. He can go to hell.

« Last Edit: June 12, 2018, 12:17:45 PM by Zamboni »

acroy

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #6 on: June 12, 2018, 12:37:03 PM »
Easy/subsidized credit creates mountains of bad debt. Every. Single. Time. bah! Mike Meru is a parasite, an embarrassment.

ginjaninja

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #7 on: June 12, 2018, 12:37:35 PM »
I think I would actually punch this guy in the face after a conversation with him.  But with my life motto you have something to learn from everyone, I can accept that he has taught me what it looks like to not take accountability for my actions.

Yeah its crazy how interest rates are the only issue for this guy.  To be fair the article does state that the reason for such a high balance is that he had a high principal and long periods without payments.

Zamboni, awesome that your friends were able to use the service to their advantage.  Thank them for their service for me if you get a chance.  I also love how many services my local library has.  I will say something about library and my peers say "Where even is a library?" or "I didn't know that libraries still exist".  I will have to look for the newspapers through mine though.  I pay $5 once a quarter for the WSJ (student rate that never expired) so for me this particular paywall was worth it, but then again I never challenged my assumption on that one.  I may be getting $20/year richer because of you!  Whoooooo!

Also I feel your sentiment.  Fuck this guy.

Just Joe

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« Last Edit: June 12, 2018, 02:08:35 PM by Just Joe »

JR

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #9 on: June 13, 2018, 08:19:35 AM »
This guy made a lot of bad decisions and continued to do so but my question is why are student loans even allowed to be used on things like an $1,800/month personal apartment and a $500/month Mercedes (his wife said this was their one luxury while he was a STUDENT!) loan? How much less student debt would there be if student loans could only be spent in tuition and on campus room and board?

ysette9

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #10 on: June 13, 2018, 09:53:43 AM »
What do you do when you don’t have access to campus room and board, or when that option is much more expensive than living off campus? I get where you are going, but there are lots of students who don’t fit the profile of young, single, and living on campus. Heck, my university didn’t even have housing for students past 2nd year due to a housing shortage. Dorm living probably isn’t a good option for older students with families either.

JR

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #11 on: June 13, 2018, 11:17:18 AM »
What do you do when you donít have access to campus room and board, or when that option is much more expensive than living off campus? I get where you are going, but there are lots of students who donít fit the profile of young, single, and living on campus. Heck, my university didnít even have housing for students past 2nd year due to a housing shortage. Dorm living probably isnít a good option for older students with families either.

As an adult student I worked full time while taking classes (mostly full time) so I understand that not everyone is a traditional college student. People in circumstances such as mine would find a way and make the sacrifices required if they did not have access to loans to pay for all of their off campus needs. If it really came down to it Iím sure rules could be created for non traditional students.
« Last Edit: June 13, 2018, 11:19:35 AM by JR »

ginjaninja

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #12 on: June 13, 2018, 11:18:37 AM »
JR and ysette9 I think that there is some sort of balance in between.  It does not seem like there is any accountability for what student loans are used for.  Yes I agree on campus housing isn't practical in all situations, but a limited stipend with required receipts/lease agreements could help with this problem.

I have a friend who's parents got divorced when she was very young.  Long story short they agreed to each pay half of her college.  The time comes for her to go to school and her mom had saved enough money and her dad had not.  Her dad was able to take out loans for the full value of her tuition instead of just the half that was required by contract.  The first year her dad got a really nice new camper.  Her sophomore year she came home to a band new hot tub in the back yard.  I do not know all of the details of the loans but this seems like a gross misuse of student debt, in similar fashion to the $500/month Mercedes lease.  I know other friends who use their student loans for things like buying cars, eating out for expensive food and drinking, etc.  If there were better stipulations in place on what loans could be used for outside of tuition, we might have less of a problem.  But each area is different and the banks should also not be allowed to fully regulate what you can and cannot spend money on for living. 

I also had other friends who took out more money than they needed just in case.  They didn't end up not spending all of the allotted amount on books, housing, and food so they used the money to repay the loans right away.

ysette9

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #13 on: June 13, 2018, 11:28:46 AM »
JR and ysette9 I think that there is some sort of balance in between.  It does not seem like there is any accountability for what student loans are used for.  Yes I agree on campus housing isn't practical in all situations, but a limited stipend with required receipts/lease agreements could help with this problem.

I have a friend who's parents got divorced when she was very young.  Long story short they agreed to each pay half of her college.  The time comes for her to go to school and her mom had saved enough money and her dad had not.  Her dad was able to take out loans for the full value of her tuition instead of just the half that was required by contract.  The first year her dad got a really nice new camper.  Her sophomore year she came home to a band new hot tub in the back yard.  I do not know all of the details of the loans but this seems like a gross misuse of student debt, in similar fashion to the $500/month Mercedes lease.  I know other friends who use their student loans for things like buying cars, eating out for expensive food and drinking, etc.  If there were better stipulations in place on what loans could be used for outside of tuition, we might have less of a problem.  But each area is different and the banks should also not be allowed to fully regulate what you can and cannot spend money on for living. 

I also had other friends who took out more money than they needed just in case.  They didn't end up not spending all of the allotted amount on books, housing, and food so they used the money to repay the loans right away.
I totally agree with you that there should be some reasonableness in the system. I’m not condoning Mercedes payments with student loans. I just want to point out that this isn’t the same as my classmate who needed housing for him, his wife, and two kids while doing his master’s degree.

I’ve read that perhaps counter-intuitively, making student loans easier to get doesn’t help the overall goal of affordable higher education. Having all of that extra money in the system allows universities to raise prices because the customers of the product can afford it via debt. I’m not quite sure how to put that genie back in the bottle. Maybe a slow ramp-down of availability of student loans? That would be politically tough.

ginjaninja

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #14 on: June 13, 2018, 11:46:37 AM »
Quote
Having all of that extra money in the system allows universities to raise prices because the customers of the product can afford it via debt.

This. This is what my major gripe against student loans has been for so long.  Brace yourself. My student loans rant is coming.

There is no limiting supply and demand for college anymore.  The schools can literally charge whatever they want because students are not forced to realize the actual cost.  Even adding $1000/ year to the cost of college is not considered when a student is making a choice on what institution to attend. 

I don't know what the price threshold is for a student using loans for choosing one college over another for strictly academic purposes.  I don't think the universities are 100% to blame though.  Why would they control their prices when they don't have to?  If attracting students is not through how affordable the schools is, then I see no reason why they would curtail spending on sports teams, multi-million dollar sports stadiums, brand new fitness facilities, unlimited concerts and student activities, fancy state of the art dorms and living facilities, etc. etc. etc.  This is why school is so expensive.  It is about the "college experience" not about the investment in a quality education that can get you a fruitful job when graduating. 

The above is my opinion that has been developed through my own experiences in college.  I am more than happy to accept new perspectives into my view on the subject because my sample set is limited to the people I know that have attended higher education facilities.
« Last Edit: June 13, 2018, 12:18:39 PM by ginjaninja »

I'm a red panda

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Re: $1,000,000 in student debt and driving a Tesla
« Reply #15 on: June 13, 2018, 11:52:38 AM »
Standard of living is one area I have issues with forgiving student loans. I think the system is greatly flawed and I'm willing to kind of do a "reset" funded by the government for tuition and fees, and then something about living expenses. But so many people have extravagant apartments, new clothes, and vacation trips to Europe and spring break in Cancun funded by their student loans.  I'm not OK with the government forgiving that. 

I lived in an apartment that cost $640 (a BIG one too. I had a room that fit a full bed, a desk with computer, a desk with a sewing machine, a dresser, and had a huge closet), with bills, a month when I was in college. I remember my Mom visited we went to a family friend's apartment for dinner. My Mom asked me why I didn't move into something "as nice as this" (it had a car wash,tanning (blech), a pool with lazy river, etc) - her rent was only $600 a month.  I had to explain to my Mom that was her PORTION of the rent. The apartment was rented by the room- each of 4 occupants paid $600 a month. My roommate and I split the $640.

That girl has outrageous student loans. She talks about how she'll never be able to pay them off. But much of the spending was her own choices- always eating out, always at the mall.

I don't begrudge someone being able to study and also feed their family; but they don't need to feed them at the downtown steakhouse.