Right on schedule. Booya. Nice doing business with you Sallie Mae. This was a $15,700 loan when I started working on it in April (about $20,000 when originally taken in 2004). Still have two more loans left, but every loan payoff is like personal finance Christmas.
Of course it feels good to improve my finances, but the more I am reading about this “student debt crisis” I sense that I am also helping to create a stronger fiscal environment for student lending. My rudimentary understanding is that the banks are lending out too much to so many students, and not enough is coming back in via repayment to keep the system viable.
I do not want the lending system to have a bubble burst. Because if that were to happen, the government might go forgive everyone else’s loans. And selfishly, I would be pretty upset if my tax dollars were spent bailing out others while I busted my money-maker paying off my debt. In reality, they would probably bail out the banks, not us, anyway. On the flip side, a failure of the lending system would force tuition rates to go down, which is totally necessary. Without excessive lending available, it would be inevitable. But ideally there would be a less violent path to that outcome, such as the market for fancy education diminishing due to uncertain ROI. But I digress…
Anyway, here I am after said loan was paid:
I highly recommend following up a massive and accelerated loan payoff with a beer-and-burger special.