Yesterday I realized that I truly know nothing about loans. I was horrified to know that my school loan to Sallie Mae would take so much longer to pay off than I initially thought. They're crooks and how they're able to get away with it is beyond me. Although I wonder if I'm even more dunce than they are evil because I got a loan from them. Why did I do that? Probably because I was a very eager misinformed college student.
I have just learned that the payments I have been making on my student loan have only been going towards my interest and not principle balance. Have any idea what that means? I didn't either till about 15 min ago. Apparently some loans only put your minimum payment towards the interest on the loan and not towards the total amount. So pretty much for Sallie Mae if you just pay the minimum payment you can be paying that for the rest of your life and never touch your principle balance. Seriously!?
So why am I ranting about this? Besides the fact that I think this is a complete injustice to college students everywhere, I'm also wanting to inform them. I didn't have anyone tell me exactly what it meant to take out a loan. In my mind I thought any school loan = good because they're "helping" you. I guess it turns out that just like every other multimillion dollar company they are only after your money. It's sad to know that at this point in life most people have to go to school to earn a decent paying job only to have all this school debt. And in this economy those same people might not even find that job. This is not a rant about how America sucks or how I hate the government. Because in reality this is an amazing country and I am held accountable for my own actions. Do I wish somebody would have sat me down and said this is a bad idea? Yes. But in the end I can't blame someone else for the choices I made, informed or not.
So please tell college student everywhere to read the fine print, ask for help, and be as informed as possible when taking out a large amount of money. You need someone who's going to lay out all the facts for you. Also take into consideration your future self. Is your job going to be able afford the lifestyle and debt you will have? Do you have a family to think about? Are you prepared for bad credit?
Many of my friends made smarter choices when it came to paying for school. There are payment plans you can do while in school. Some owed their parents money instead of a bank. Others went for cheaper schools instead of private ones. Whatever the choice just make sure It's an informed thought out decision. And NEVER EVER, EVER, EVER, EVER choose Sallie Mae because they're-crook-money-stealing-robots who will get every penny they can from you. True story. I'm living it. Sallie Mae can kick rocks.