As many graduates are looking for apartments, leasing cars, upgrading their cell phones, and buying new clothes, I hope they are considering their loan repayment amount. Last night I had dinner with a dear friend who told me about one of his co-workers who still owes $100K 10 years post graduation. He makes the minimum payment each month, because he claims he cannot afford to may more. This co-worker drives a new BMW, goes out every weekend to great dinners and shows, hangs out at top-shelf clubs and bars, takes women on expensive dates and is considering returning to college for a MBA at a $60K price tag. This guy has not saved and plans to borrow for his MBA for the purpose getting ahead professionally and earning more money. Sadly, I think he wants to earn more money to live a more extravagent life. When does he come to terms with his financially reality?
I think this article gives the reader some ways to consider living with debt repayment in a responsible way. While I don’t want anyone to make mistakes – especially, mistakes that can have a lifetime penalty and mistakes that cost taxpayers, I do think this article provides an opportunity to learn from someone’s mistakes. I encourage parents to read this article for a conversation starter.