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I find it interesting that people are willing to take a mortgage out on a house (he did this as everyone does) and fully understand that it is totally reasonabl
by larrys 14y ago
I find it interesting that people are willing to take a mortgage out on a house (he did this as everyone does) and fully understand that it is totally reasonable to have to take 30 years to pay that off, or pay for a car over 3 to 5 years, but for some reason of all things, a Harvard education which they owe $90,000 on, is a burden that needs to be retired as quickly as possible.
There is nothing inherently wrong about paying over time for something you will use over time.
Added: Save the obvious publicity bonus (noted by the WSJ and in the WSJ of all places) he could have done this more easily over the course of 2 to 5 years with normal cutbacks even assuming no salary increases.
- chrisaycock 14y agoAgreed. And worse, the article states he saved $40K by paying in one year vs 15 years, which implies that his interest rate was around 3%. That's inflation! He could have effectively had the same savings by just waiting.
- reader5000 14y agoYou can't live in a degree. Essentially, a Harvard professional degree gets you to the top of the resume pile. Is that worth $800/mo for 25 years? How about a non-Ivy professional degree that costs the same? Psychologically I reckon it is more pleasing to just be rid of the payment, even if financially you are losing by paying it off so quickly. Good for him. Now if all kids with $90,000+ student debts could find 6 figure jobs we'd be on the right track!
- factorial 14y agoWhy do you think mortgages are reasonable? With a little luck, you give half your life's earnings to a bank. Much better to rent, save up cash, and buy property outright when you can.