[Guest post by DRJ]
The Chicago Tribune has a brief article that provides more questions than answers about the Obamas student loans:
“The Obamas often say they would still be in debt if not for his best-selling books, which began to swell the couple’s bank account in 2005. In fact, for some period of time, Michelle Obama tells audiences, the couple’s college loan payments cost them more than their monthly mortgage.
As young lawyers, the Obamas pursued non-profit or public service during much of the 1990s. Obama once said he was so broke when he arrived in Los Angeles for the Democratic National Convention in 2000 that his credit card was rejected when he tried to rent a car.
Still, it’s hard to tell just how broke they were, when and for how long.
Public records paint only part of the financial picture. In 1993 they bought a condominium in Hyde Park for $277,500, paying about $111,000 as a down payment, according to county real estate records.
As for income, they earned a combined household total of slightly more than $240,000 in 2000, according to tax records they have since made public. (Their income fluctuated in that range until 2005, when they reported earning $1.6 million.)
But it’s unclear how much their college loan debts were, and aides to the Obama campaign said last week that they could not immediately provide records to clarify.
However, Michelle Obama graduated from Harvard Law School in 1988 and her husband graduated in 1991, around the time when the school’s dean estimated the cost of a Harvard law degree at $62,200. They both also earned undergraduate degrees from Ivy League schools.”
This is interesting to me because our oldest son considered and/or is considering Ivy League schools for college and law school, so I’m familiar with the costs. As the Chicago Tribune notes, however, it’s difficult to guess about their loans without more information.
Was the law school price tag of $62,200 for tuition only or did it include books, room and board? I suspect it included all items and, if so, the Obamas’ law school debt would be in the neighborhood of $375,000. (I’m not counting income they earned during any summer clerkships because those funds were probably used to pay for summer food, housing, transportation, clothing, and for discretionary expenses.)
In addition, did the Obamas have undergraduate loans? Given the humble backgrounds both Obamas have described, I would be surprised if they didn’t receive some or even significant financial assistance at the undergraduate level. Other than National Merit scholarships, need-based financial assistance was the norm even back in my college years 10 years before the Obamas went to college.
Other questions include whether either Obama received financial assistance in law school that defrayed their costs, and what were the interest rates on the student loans and when did the interest start to accrue.
If the Obamas were able to get Ivy League undergraduate and law school educations for under $200K each, that seems like a bargain to me – even at 1983 rates. If they release more information, it will be interesting to see what the actual numbers were.
— DRJ