(Insert stupid Blog name here)

Not having a student loan from Sallie Mae (heck, no student load other than from my parents) I might be talking out of my ass, but I thought most people tried to stretch out their student loans as long as possible because they often are at lower rates and at better terms than most other loans. However, I can understand wanting to be debt-free as soon as possible - even if the concept seems foreign to many people.

 

But looking through the rants on Google, I can understand not wanting to deal with a company that doesn't abide by their terms of the contract.

The problem with stretching them out is the same as any loan - you end up paying a lot more interest.

 

I had to stretch mine out because I couldn't afford the initial higher payments, so I refinanced it. The monthly payments were better, but I ended up paying far more interest than I would have otherwise. It's free money for Sallie Mae, so of course they encourage people to drag out their payments for as many years as possible. You end up paying as much or more in interest than on the original principal, effectively doubling your debt (or worse).

 

Unfortunately, college has become so insanely expensive now, loans are hard to avoid. I graduated in '94, and I can't imagine incurring the sort of debt students have to go through now. Tuition has more than doubled since I left college.

I was attending college way back in 1977 and ran out of money for tuition. I have been able to return only because my employeer now offers to pay tuition. I have spent the last two years taking classes one per semester. At this rate it will take a few more years to finish, but who could pass up free tuition.

I think more employers should do that. They get a better employee at the end, and a grateful one at that.

 

I now work at the college I attended, but even if I wanted to earn a degree there now, I couldn't do it. They don't allow employees to take classes for credit there, and offer no tuition remission either. They give some consideration for family members of the employees, but then it's counted as part of the employee's income, so they have to pay massive taxes on it. It's a pretty stupid and short-sighted system.