Daily Archives: 18 January 2014

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Is it Smart for Me to Take Out Student Loans?

Is it Smart for Me to Take Out Student Loans?

In this post my friend (whose recent post “Do You Want Financial Security or the Appearance of Wealth,” on 30 Dec 2013 on www.micawberprinciple.com, was selected to appear on rockstarfinance.com, a site that describes itself as “A Collection of Awesome Money Articles.”) discusses how to estimate the financial payoff for taking out student loans.

Applying this retroactively to my undergraduate degree and student loans, my payoff time was 0.65 years. In actuality, because I had an incredibly low interest rate, I paid it off slowly, with only an extra $10/month toward the principle, until I was about 2/3 done, then I started paying it off aggressively. My total payoff time in real life was about 4 years.

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