Comments on: Student Loans: Treat Them Right http://studenomics.com/debt-reduction/student-loans-treat-them-right/ Fri, 10 Feb 2012 02:51:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anthony http://studenomics.com/debt-reduction/student-loans-treat-them-right/#comment-23092 Anthony Wed, 17 Feb 2010 20:50:24 +0000 http://studenomics.com/?p=3709#comment-23092 I agree with all of your statements, except for maybe this one: "If you don’t need the loan, don’t borrow it, or at least hold on to it to pay the loan back quicker." On the surface it's a good plan for most people. However, if you are disciplined enough (the assumption is that most college students are not) and if you are able to get a subsidized loan, take the excess amount, put it into a long-term CD, and earn a little bit of money. Once you go into repayment, take the CD and interest and pay down the loan. If you take advantage of government subsidies, the interest from the CD will be a small benefit to you. I agree with all of your statements, except for maybe this one: “If you don’t need the loan, don’t borrow it, or at least hold on to it to pay the loan back quicker.”

On the surface it’s a good plan for most people. However, if you are disciplined enough (the assumption is that most college students are not) and if you are able to get a subsidized loan, take the excess amount, put it into a long-term CD, and earn a little bit of money. Once you go into repayment, take the CD and interest and pay down the loan. If you take advantage of government subsidies, the interest from the CD will be a small benefit to you.

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