Tuesday, January 15, 2008

Student Loans

I started to look over my student loan information in preparation for tax time and I made the disheartening discovery that after over two years of making student loan payments, I still owe more than I originally borrowed. My higher balance is just a good example of how interest can really add up. So I started to think if student loans (which only charges me 7%) can accumulate that kind of balance, then how bad it would be to carry a huge credit card debt that can charge three times that. And with credit card interest you don't even get the tax breaks that come with student loan payments. Despite my initial reaction of being disappointed about my higher balance, after thinking about debt I started to realize that student loan debt is not a bad kind to have.

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