Dumb with Money

I graduated college completely (Bachelors and Masters) in 1997. When I signed my enrollment letter and financial aid letters I just thought everyone gets the same rate. Most people do. Does anyone ever remember comparing rates?

Little did I know that if I just would have compared rates, I would have saved myself 3% per year over 13 years it took me to pay it all back.

This is sickening… If I would have saved 3% of $94,000 over 13 years.

According the compound interest calculator, I Googled, I would have saved $44,768.64. Assuming the interest was compounded monthly.

Bottom Line:  Tell everyone you care about to compare their possible rates for student loans.  You be surprised how much they’ll save.  Many colleges are getting ridiculous kick backs from loan companies.

Update:  60 minutes had something on the fallacy of student loans

My main reason for creating this blog was to help others steer themselves away from being dumb with their money.

When I got a student loan… I was dumb. 

When I got my first job… I was dumb.

When I rented my apartment… I was dumb.

When I set up my retirement fund… I was dumb.

When I bought my first house… I was dumb.

When I sold my first house… I was dumb.

I feel bad for young people coming out of college who will follow the same life course.  If I just would have known a couple of minor details I could have saved thousands of dollars during each event. Let see if I can help you steer around those pitfalls.