Medicated Money

Monday, March 13, 2006

Student Loans???

How is education supposed to make me feel smarter? Besides, every time I learn something new, it pushes some old stuff out of my brain. Remember when I took that home winemaking course, and I forgot how to drive? -Homer Simpson

The last few posts have been on net worth, and with that, our debt. For us, the majority of our debt is in student loans. $94,813 to be exact. That number was once much higher. We have each paid off loans of $8,000 that the interest rate was extremely high (13% & 10%). Funny how at that interest rate, I needed to pay off that ridiculous loan (definitely bad debt), but after that, the 'ok' & 'good" debts could wait! Many people comment that with our degrees, and with most of the debt ($88,752) at such a low interest (3.625%), that we should not worry about it and just consider it as 'free' money. We definitely are torn about this. 3.625% is a great rate, and definitely worth the price for our education. We both come from middle-class households and could not have gone to school without those loans. However, anyway you try to spin it, it is still a lot of money. We have talked to numerous advisors on how fast we should pay off this debt; from fellow colleagues to our parents to a financial advisor. Everyone has answered it differently.

So, we are asking our readers to answer this question: Are student loans 'good' debt to you, and how fast should one repay the loan?

2 Comments:

  • You are on the right track !! Admitting that you have a doctitis (I know I screwed it up, now you know I am no medicoose ) and planning to do something about it would definitely a great step.

    Well as someone else mentioned here, your loans are a good investment anyway.

    By Blogger GEOMATRYX, at 12:35 AM, March 14, 2006  

  • Jane and I have a lot of schooling under our belts and still owe $171,100 despite receiving tens of thousands in grants. Jane regrets only credit card debt incurred during graduate school but nothing else. I on the other hand regret that I chose to go to a top ten private school rather than a top 50 public school that would have cost about $60,000 less. Oh well.

    By Blogger John OMM, at 8:43 PM, March 27, 2006  

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