All tagged Tertiary Education

You should pay off your student loan, and here’s why.

I want to explain why you will often hear me encouraging people to avoid taking out student loans or pay them off as fast as possible if they have them. My suggestion is more controversial than I realised, and I’m often taken to task for my view, particularly by more mathematically minded people. Over almost eight years of talking with people from all walks of life about money, I have found that student loans keep coming up in conversations with former students. The simple reason is that what is considered a relatively innocuous decision to take on interest-free student debt has far wider-ranging implications than those borrowers ever realised at the outset. I kōrero with many people, and the word that keeps coming up regarding student loans is simple: REGRET. The reason they now have regret is that the debt had impacts on their life that they never foresaw.

How to Pay Cash for Tertiary Education

This blog post results from a brief yet alarming conversation I had with a 15-year-old who has three years remaining at school before they planned to head off to university. In answer to my question, “how are you going to pay for it,” they quickly replied, “with student loans, because they are interest-free”. It was not my place to comment at the time (although in my head I was screaming to say something), but given I write a blog, I’ve created a space where I can give their response some thought. So, I will.