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Assuming you took out student loans, are you factoring in the interest accumulated into your total costs? There's no interest in the "17% over 3 years" model.
by cableshaft 9y ago
Assuming you took out student loans, are you factoring in the interest accumulated into your total costs? There's no interest in the "17% over 3 years" model.
I had about $25k of student loan debt when I graduated, but by the time I've paid it off I think I will have paid closer to $35k-40k, factoring in interest over several years.
- antisthenes 9y ago> There's no interest in the "17% over 3 years" model. There isn't but it's insignificant and the potential salary increases would overshadow charging interest anyway (at least in the current low interest environment in the US)
- throwawayjava 9y agoThis is an excellent point and IMO a major benefit of the 17% model. Entirely too much money spent on higher ed in the US goes to banks.
- learc83 9y agoFederal loans (90% of all student loan disbursements) are paid from the treasury. There's an argument to be made that the government shouldn't be charging students interest. But there's no banks involved.
- vollmond 9y agoYeah, good point. I didn't think to factor in interest. Noted in the OP now.