Oh, I’m sorry, “restructuring.”
That’s all that really needs to be said about Thomas Jefferson School of Law’s “Restructuring Support Agreement” with 90 percent of its bondholders. I’ve refrained from editorializing on the most of troubled law schools, but an $87 million write-off for its Xanadu-esque building sounds high. I suppose it beats a chapter 7 corporate dissolution; there is still plenty of unsubsidized Stafford loan margin to be captured, after all.
TJSL’s students on the other hand at least get PAYE, which they’ll need because last year they left with an average disbursed debt of $180,665. In order to avoid loan cancellation, even without accrued interest, graduates would need to make $182,000 from their very first repayment. After that, it’s twenty years until the government forgives their balances and sends them a tax bill for it.
But I’m sure employers are committed to ensuring that TJSL grads receive more than triple median household income the day they walk through the door.