School loans will be the end of me...




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.


The end!

Leave a Comment

Makaila said...

True, True, TRUE. I think they should make everyone who takes a student loan sit down with a calculator and SHOW us how long it will take to pay off and how much INTEREST will be paid, and HOW MUCH that monthly payment will be. It is ridiculous that they don't require students to be informed.

Allyson Butler said...

This is so true! Every day I realize how little I actually know about loans and being a grown-up. I'm going to have some serious work to do when I graduate (in six months)!

Bev D said...

I am one of those who didn't know about loans and their payments either....:/
I literally just graduated and have yet to figure out my unending debt. This post just reminded me about it. Thanks! :P

Spanish Pinay said...

You did so right making this post. Students should be aware of this, especially about this Sallie Crooks loan company. Oh what did you say? Sallie what? Ah, Salie Mae. I hope they go bankrupt.

You'll be blessed, Daisy. I'm sure one day you'll figure out how you can get away from this college debt as God will always provide.

Spanish Pinay

Michelle P said...

I agree, students should be aware of this. At my school, they had us read multiple forms about student loans before they would disburse any.

Jeannie said...

Well, while I do not have loans from Sallie Mae, I do have Federal school loans...I am paying $500 a month. My debt is at about $40,000 right now, and I have been paying already for about 2 years. This is for my grad school education - that was only 2 yrs. It is crazy. These loans are the reason my husband and I struggle every month...and will do so for the next 5-10 years. It's sad how much you end up paying and how long you pay for a college education that actually is not really getting you anywhere in this economy right now. There are absolutely no jobs...and for the jobs there are - you better be ready to compete with about 150 other applicants. so sorry to hear you are going through this...but honey, youre not the only one.

Marjorie Stradinger said...

Daisy

This is really important information. Thanks so much for alerting us. I am a mom helping my daughter pay off her Sallie Mae and I think we are making the exact same error.

Time to pay it off and borrow from a more reputable lender.

Thanks again. Keep up the good work.

I also happen to be ranting about a gov agency on my blog--the Post Office. www.spinningstrawintogold.blogspot.com

Alyx said...

I've got federal loans, but some of them are unsubsidized and racking up debt while I'm in school, which totally blows. I'm not a fan.

Doodle said...

Daisy, let's talk. Yes, loans are rough. However long the loan is for, it's not until AFTER the halfway point (way after sometimes) that the principle and interest balance out, and you start paying more on principle. But you CAN pay double principle now ~ just have to keep an eye on them loan rascals! And make a note to them that you ARE paying double principle, so they apply it correctly.

Marjorie Stradinger said...

Thanks for that tip Doodle.

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