And your friend who’s working so hard is getting screwed, because the government is going to try to take half that 1099 income to pay for the programs the Joes are pitching. I know this for a fact because my 05 return was exactly what you stated. 55k income, 31k 1099, and if it weren’t for some very creative tax deductions my tax guy came up with the goverment wanted 17k of that 31k. Even with the deductions I still paid in around 12k on the 31k of work I did above and beyond my 40 hour a week job. That’s just not right.
And no, student loans are not for LIVING off. They pay tuition while your part time job or assistance from parents pays for your car/food/rent.