One of my favorite moments in the Obama presidency is when Michelle Obama talked about how debt-ridden she and Barack were when they were younger. It was part of her 2012 Democratic Convention speech. Both Obamas had tens of thousands of dollars in student debt, and from what I understand, they weren’t able to pay off their student loans until Obama became a senator AND his books became bestsellers.
Some people (Elizabeth Warren) believe there is a crisis in student debt, and I tend to agree. College should be much more affordable than it is today. When I think back to how inexpensive it was when I went to college, it’s sort mind-blowing (but then again, I am more than a decade past my college graduation). Anyway, Miles Teller – who really isn’t THAT much younger than me – admitted in a recent interview that he still has student loan debt. It’s not that he doesn’t have the money to pay it off (he’s starred in some big studio films the past few years), but he just doesn’t think it’s any big deal to leave his debt out there. Lingering. Some highlights from Miles’ Vulture interview:
What he learned in college: “I couldn’t tell you a single thing I learned in college. You’re into it at the time and then when you leave, you kind of forget it.”
His scheduling with Divergent & Fantastic Four: “It’s nice, because you can get involved with a project early. You’re not scrambling to figure out what to do. These movies basically only take up my summers, and even then, if a movie wants you bad enough, they’ll work around it. I can do two, three films a year. I know I’ll at least be doing one, so I can balance it from there.”
He still hasn’t paid off his student loans: “That is true. My business manager says the interest is so low, there’s no sense in paying them off. I can, if I want to have that badge of accomplishment, but until then I still very much have my NYU loans.”
Ugh, I would hate to have that kind of debt hanging over me. But I’m the kind of person tempted to pay off her credit card bill in full every time. Just sitting here, knowing that I have an outstanding $250 on my Discover card is making me feel itchy. I had to learn that it’s good to have some kind of debt that you pay off gradually, because that helps your credit score. Not that Miles Teller is worried about his credit score, I’m guessing. He probably just does whatever his business manager tells him to do. Still… why not just pay it off? Typical dude, not planning his long-term financial future. Thinking about Miles’ debt is making me itch.
Photos courtesy of WENN.
If he doesn’t care for paying his he’s always welcome to pay mine 🙂
Hear Hear! I’m in line with you!
Right!? OMG. That’s the first thing I would do if I had the money. I will probably never feel truly free as long as I have this debt. It’s soul crushing.
I guess if you have a lot of money it doesn’t matter but I simply don’t 😀
What?! You pay that off if you can afford it and still have savings to fall back on. Common sense.
Because the interest is low doesn’t mean it can sit in the backround while you buy things you want and not need. And that low interest debt still looms over your credit.
How is this guy a thing? He seems awful.
And yea. college is too expensive and you’re not getting more now than 10 years ago. Those who could benefit the greatest from college are often the ones who can’t afford it even with grants, loans, and part time jobs. The burden is too great. It’s a broken system.
I don’t think Miles means he’s not paying off the loans at all. Just letting it run at the minimum, instead of making accelerated payments to get rid of it. He’s just doesn’t realize his adviser’s actual advice.
It actually does make financial sense to use money on other investments instead of paying off loans, if the interest on the loans is less than 4%. You’re likely to get a better return (around 7%) on the investments (retirement accounts, taxable accounts).
Some people do value getting rid of the loans over being financially efficient, which is perfectly fine. One less thing to worry about. But as far as financial advice goes, the adviser isn’t wrong. I wish he had explained it better because he sounds stupid and in a way, is bragging about his ability to pay off (but chooses not to) when so many people can’t.
And, like said above, paying off a debt slowly over time builds your credit. He’s not being unwise by paying his loans on the schedule he originally intended just because right this second he’s making some money. No one know Miles Tellers future. He may need that excellent credit score someday.
I get he’s likely paying the minimum and building credit can work that way.
The issue here is he could wipe it out fully and still have amazing credit from other investments/purchases. How he’s framing this isn’t coming off like it’s an informed decision about credit building. That he’ll just pay what he has to and not needs to is the route he’s taking.
He comes off very entitled-douchey.
@FLORC: but the interest on student loans is tax deductible, which any other type of loan (aside from a mortgage) isn’t. And if his money is invested rather than sitting in a bank account it’s probably earning more than what he would save if he paid off the loan.
Thanks @Bridget – you answered the very question I was thinking about. The mortgage-interest deduction is the only reason I’ll be getting a refund this year and if student-loans work the same way it makes sense to keep them running. It’s not a bad strategy, as long as the investments pay off and he doesn’t blow the cash on things that don’t bring a return.
Ya, I am one of the few who really digs Mr. Teller here, but I can say 100% that I think this is a dumb move. So the interest rate is low (although, honestly, unless he was on a gov’t funded loan the interest rates really aren’t that low, at least 6%) why not just remove all risk that comes with debt and be more in control of your money? I remember him saying he didn’t make a lot of money for Whiplash (again, no sympathy points from me) but he *has* to be able to write a check to pay these off today. Just do it man. It feels good.
Also, college is way to expensive now and if I ever have kids I really wonder what the prices will look like then. Shudder.
even with gov’t funded, they’re not low. all of my gov’t funded are between 7-9%. my private loans are the ones i was able to consolidate to 3%.
Student loans actually help your credit rating. As a young person, this is a good thing for him to have to help build his credit history and his credit score. The biz manager knows what they are doing.
I don’t understand celebrities who let themselves get into these things. I understand why I don’t pay my school loans – I’m friggin poor. But it’s like Carnie Wilson, who I’m a huge fan of, but who supposedly has $24 million in the bank and still let her house go into short sale because she owed $1.6 m on it. Why not just pay the entire $1.6 m on the house and own it outright? You still have plenty of money to live on. It makes no sense to me and I never feel bad for celebrities who slide into foreclosure while they’re buying expensive cars and taking exotic vacations. Rihanna’s been in foreclosure already and she’s not even 25 yet.
It’s actually smart from a business standpoint. In general, if you have a low student loan, it makes more sense to save toward your first house, with the price of rent in cities, you’re much better off paying 3,000/mo toward a home than toward rent, particularly when the value of most homes in cities is heading upward at the moment. You have to live somewhere and you’d be paying out that money anyway.
his business manager is an idiot…interest is interest, no matter how low it is.
And he seems like such a jerk – if I were him, I would be worried about future work, but he seems like too much of an a** to think that the work would ever dry up.
Exactly! He says that he would definitely be doing 1 film a year. He should hope so, but he shouldn’t be counting his movies before they’re signed on the dotted line!
Yes, these actors and singers, they get one hit under their belts and then spend like money is water and they don’t even stop to think that they are working on commission and just like a temp job, there’s no guarantee you’ll get another call tomorrow.
I’m commenting from a European background… But I’ve also put the payments on my student loan on break for a couple of years. The logic behind this is that the interest is so low and while also having a loan (my apartment) at a higher interest it makes more sense (economically) to use my money to pay of the apartment instead. It makes so much sense actually
But Miles is young and likely doesn’t have much of a credit score. Student loans actually help your credit score (it is seen as an investment in future earnings). Having long term loans that you pay back on time is good for your credit score, especially of the student loan variety.
Yes, but the benefit of this is overblown. If you can find a way to go to college without a student loan in such a way where the major makes you happy and the school makes you happy. If you can figure out a way to do school without taking on a student loan, then you are doing yourself a MASSIVE favor.
As a young person (which he’s not, he’s almost 30) you can easily build your credit without having a student loan. Get a secured/unsecured credit card and build good financial habits on that. You can build credit without ever having to pay a dime of interest.
Of course if a person can go to university without getting a loan, they should certainly consider that option. It is one way to build a credit history, I didn’t suggest it was the only one. Given his options, it might be the best choice for him.
It’s not a better option or the best choice for him in order to build a credit history. He’s just stuck with them and he has to pay them. Paying the minimums isn’t about building a credit history. He would still have built a credit history if he just paid them off. Those paid off loans don’t leave your credit history for 10 years and they reflect positively in your credit report. He can buy a house, it’s well within his means. He can get a credit card. Also well within his means. He’s fully capable of being able to establish a credit history without a student loan. Building a credit history is not what his advisor had in mind when he gave him that advice. It’s not worth it monetarily because he can make more investing his money than paying the student loans.
His business advisor is not an idiot. This is the same exact advice that my financial advisor gave me. I could pay off the remainder of my student loan debt today, but I’m better off investing the the extra money in my retirement funds and my kids’ education funds. My monthly payments are easily manageable and I’ll be fully paid off in 10 years from graduation. This is not unusual advice for high-income earners — don’t carry/pay off quickly any high interest unsecured consumer debt (i.e., credit cards), but if you have low-interest and/or secured debt (student loans, mortgage, cars), don’t pay it off any faster than you have to *especially* if your retirement, emergency savings, and/or kids’ education funds aren’t fully funded. You make your money work for you in the most efficient way possible and paying off low-interest debt that doesn’t hurt your credit score is not efficient.
If he’s making 6, even 7 percent on his money (savings, investments, etc) he’d LOSE money by paying them off. He’s young and I’ll bet his interest rate is 2-3 percent (as are my son’s) PLUS the interest on student loans is tax deductible. Sound financial move to my thinking. My tax guy told me NOT to pay my house off – but rather make money on investing those funds and reap the tax breaks of mortgage interest.
I’m getting the impression that student loan debt isn’t the only debt he’s juggling. I’d bet he’s got credit card debt up to his eye-balls and the financial plan is to go the snow-ball route and pay off the high interest debt first, then take the money initially applied to that and put it towards the next highest and so on. It often pays things off quicker and with less money in the long run, although it takes more patience and certainly a reliable income which, in Hollywood seems to be a scary gamble.
I owe so much, it drives me mad thinking about other countries that have relatively free or cheap education. Education shouldn’t be a privilege only for the wealthy. This guy is an idiot, and every interview I read makes me dislike him more.
I’m not a fan either from what I’ve read. So not only is he not bothering to pay off his debt, he admits that he “forgot” everything that he got out of that high priced education? Dumb and dumber.
Esmom
His interviews do not do good things for him. He doens’t know when to stop talking or how to appear humble. He strikes me as a try-hard snob.
He’s not shirking his student loan payments. He’s simply not paying them off ahead of schedule or all in one go, which is actually very sound advice.
Goats
He can and still be fine, but doesn’t. And his attitude towards it is disconnected.
@Florc
Miles has people who know a great deal more about money telling him to focus his finances elsewhere, and he’s (wisely) listening. Just because he *can* pay them all off now doesn’t mean that it’s the best idea for him and his situation.
University education ( bachelor and master’s degree, you have to pay for a PhD) is completely free in my country. There are a few private universities but they are very looked down upon and it’s very hard to find a job of you went to a private school ( and that’s a good thing IMO)
Reading how much it costs in other countries makes me realize how lucky I am.
From what my cousin said, it’s free in France but everyone pays a sh*t ton of taxes out there, so not really all that “free”.
Awwee–you know the ol saying, there is no such thing as a “free lunch” Someone somewhere down the line is paying.
@Kitten
Exactly! They pay for collage their entire working life out of their massive taxes. They pay for it, they just have no idea how much they pay. Kind of like paying the minimum amount every paycheck for the rest of your life. It’s not free. It’s not like the collage professors in France etc. are not getting paid and teach just for the love of it. Not that there isn’t massive improvements that could be made to the US system, but at least you know what your paying there.
Yeah, taxes are higher, but I’d rather pay tax and have free education, free healthcare, etc., and good social policies. Also, the richer you are the more you pay, as it should be.
Educating people benefits the entire society, even the ones who don’t go to college. I stilk think our system is much better than the US one.
In places where it’s “free or cheep” you pay enormous taxes-in many places up to 50% of your income. It’s not free, the difference is that in the U.S. you decide where your money goes and in countries where it’s “free” that choice is made for you. So, even if you never go to college you still pay for it for your entire working life. Not saying the U.S. system doesn’t need help, just saying that nothing is free.
I am a french student at La Sorbonne and I can tell you that while studying isn’t nearly as expensive here as it is in the US, law studies in one of the best universities of the country definitely isn’t free, and you pay it upfront, not just in taxes, I paid about 1000 euros on universities fees, add to it the very expensives codes you need to own to study and pass the exams, and it easily comes up to several thousands of euros per year, the only ones not paying are the people who are given scholarship by the state, which is becoming increasingly difficult, not to say impossible to obtain.
I honestly worry about not having my loan granted to be able to go study next next year in the US, or even in France to finish my studies and enter lawyer school.
Having enough money to pay off your student loan, Miles should def pay his debt while he can, that seems to be the only smart thing to do, Miles forgets that he’s not Pitt or Clooney, he’s got no assurance that he’ll keep getting roles, but it’s his choice,
Miles shoud hush up, cos right now he sounds snob, conceited and like it’s no big deal to have a huge debt over your head, he should at least acknowledge that he was lucky that his loan was granted and lucky to have a college education.
@Cyn: student loans in the US easily climb in the $100,000 to $200,000 range. Easily. A school like NYU is about $50,000 a year.
Also, Miles is getting good financial advice. Interest on student loans is both low AND tax deductible, and he can take that money that he would use to pay off the loan and invest it and get a much higher rate of return.
Kitten and others- the advantage of paying taxes for things like education and health care is that what you pay is based on your income. So when your income is too low, you pay nothing or very little. When it’s higher, you pay a reasonable share. So if you have the ability, you can study at the university; if you’re sick or injured, you can go get medical care. Taxes in other countries are really not higher than in the US when we consider they are getting services that Americans have to pay separately (and typically at much higher costs). Even childcare costs can make such a difference when subsidized by taxes for everybody – in the US, if you don’t have family who can do it for free, a major chunk of your paycheck will go for childcare if you have less income.
The average yearly income in my state is $25,000. It’s not unusual for health insurance to cost $10,000 per year especially as a person gets older, and for that the insurance company can deny claims any time it wants even for emergencies and won’t pay the whole bill by design while medical costs are insane. (Ask me about my $15,000 UTI.) The math is not good.
The problem with the U.S. system is that everybody is one injury or illness away from financial disaster (since the insurance premiums are not based on your income, except via the new exchange the politicians are trying to kill) and unless you can find scholarships (many can’t), higher education is out of sight for many unless they take on massive debt (which they may not be able to pay, my brother’s school sold his debt to collectors who dunned him when he was mostly out of work) or risk life and limb in the military for educational benefits (ironically sometimes coming home from war zones with brain injuries that make the matter moot).
As a translator, I have contact with colleagues around the world. They always shut up about about their high taxes when they find out how the US health insurance and educational system works. It really does work so much better to spread costs around for things that are so essential for proper functioning of a society. That’s why we all pay for primary and secondary schools, police and fire departments, roads, etc. whether or not we immediately or directly benefit. Can you imagine if we had to individually pay every time we contacted the police or the firefighters? Yikes. But we’re doing just that with higher education and health care.
AHHHHH OFFENSIVE TAKEN!!!!!
In places where it’s “free or cheep” you pay enormous taxes-in many places up to 50% of your income. It’s not free, the difference is that in the U.S. you decide where your money goes and in countries where it’s “free” that choice is made for you. So, even if you never go to collage you still pay for it for your entire working life. Not saying the U.S. system doesn’t need help, just saying that nothing is free.
I would’ve totally been fine living in Europe and paying out the keister in taxes to have a public education system. At least it’s for the greater good. Not like we have incredible amounts of control over where our money goes now.
Sorry, second language, mind the typos.
Not saying it’s perfect, just saying it’s not free.
Yeah, where do you think the us military budget comes from?
Taxes in France are massive? How so?
If you add state, VAT, sales tax, income tax and federal taxes up Americans pay a lot mor in taxes than they think and like to trot out, whie not getting good education and quality healthcare in exchange.
My friend has to live at home because of her loans.
Just her car and loans are $1500 per month 🙁
Canada regulates costs for now but the current government is moving everything more and more towards the American way
It’s more or less free in my country with taxes being around 47 % once you make more than 275k USD per year, but I still prefer that over spending huge sums on education.
Whoa-beautiful dress. And, student loans are incredible! We had both our babies during college and my husbands grad work was paid for but we are still 50k deep! It’s holdings back from a lot even though our credit scores are in the 700s.
I desperately want to go to grad school but am weary about paying for it. I’m a mom who takes more than a full class load and maintains a 4.0 and I want to go into human services – you’d think there would be SOME sort of financial assistance! But none that I’ve been able to find. So, take on the extra two years and have a greater ability to help/counsel but be strapped with loans or chalk it up at my bachelors and make about the same amount of money but with less debt? He is so lucky he can just pay his off if he wants.
I’ve heard of this approach from a lot of financial planners- because your interest is so low and stable, it makes sense to put earnings into investments and pay off student loans as scheduled. Instead of putting a huge lump sum toward something you can easily pay off over time, basically, it makes sense to use that to build higher interest (and make money) off investments. Unless, of course, your loans are so high (Ivy League law school, like the Obamas, for instance) it makes sense to pay the loan off aggressively because interest AND base are so high.
Maybe he doesn’t realize it, but that’s kind of a kick in the teeth to anyone struggling to make their payments, that he can pay it off and just chooses not to.
If he were only making indie films and not earning a huge amount, that may make sense, but if he’s in some big franchises it just seems silly.
Completely agree.
Money is not an issue for him. And interest on debt is still costing you money you don’t have to owe. That he could pay this off and still not hurt his net worth is really ill-advised he’s not.
It’s not ill advised. It’s actually proper sound advice to pay off low interest loans slowly and on schedule. Just because he has the money to pay it off, doesn’t mean it’s beneficial to do so.
With the amount of money he brings in, I’d wager that people are falling over themselves to give him credit.
I think it’s probably reasonable financially to do it his way, but he just presented it in such an entitled, bratty manner, like, oh, those loans, I forgot about them, they’re so insignificant, while as Lucy2 says, people are struggling to honor their commitments. Just so insensitive, as usual.
Thank You GNAT. Very well put.
OriginalTessa
He seems like he doesn’t understand his finances in a way. Like there’s full trust his accountant/financial planner is in control. That’s how people end up bankrupt because their accountant stole millions. His approach seems foolish.
And for someone of his wealth it’s better advice to pay it off. Credit goes up and you’re not paying interest. It’s just less to deal with.
Unless there would be a penalty for paying it off in a certain time frame or he can’t afford it it’s the smart route for him. Not all. This thread is about him and not everyone paying off their loans. I think there’s a lot of generalizing here.
“I’d wager that people are falling over themselves to give him credit. ”
But probably at a high interest rate because he doesn’t have much credit history as a young person.
You get credit, you pay it off, other places start offering lower interest rates.
I agree Lucy2 someone with his money situation should really keep this information to himself. PR wise this guy could have a very big problem as he constantly seems to be stepping in it. Hollywood likes to hire people they like who make money, and he may not be able to have staying power especially with his winning personality.
Financially speaking though I can understand the business manager’s logic. The reality is if the his loan interest rate is lower than the amount of money he could be making off that lump sum, then you shouldn’t pay it off. My money makes more money than a standard student loan rate, although I have long paid mine off because I am old not because I paid it early. Now this does not mean you don’t pay the minimum or more each month. I know a lot of people aren’t comfortable with this, and if you are not you should pay it off if as soon as you can. Student loans though should be one of the last loans a person pays off, as there are so many benefits & breaks with this loan that you don’t get with credit cards, car loans, etc. Pay those off first, then the student loan. You might feel better getting rid of your student loan, but other debts are worse.
American college is a joke. The whole thing needs restructuring. Starting with cost. It could only benefit our society as a whole if quality higher education and trade skills were offered to all citizens at affordable rates. The way it is now is the reason we have such wealth/poverty disparity.
I agree. But that would call for all of middle America to change. Ppl are too afraid of losing “comfort”. It’s sad and sick. I think every year Americas flaws get more and more revealed. It’s upsetting to realize there’s no urgency for a true leader for us. Don’t even get me started on the government!
Stars: They’re just like us.
It’s not that college itself isn’t affordable (there isn’t only one college – there are affordable ones), but if you go to one that costs a lot and you incur debt, the compounding interest on that loan is what kills you. THAT is what needs to be fixed. How do you offer kids allegedly “low interest” loans but then compound that interest until it’s basically usurious? The amount of my loan nearly tripled, just due to interest.
Even the affordable ones are not that affordable. City and state used to be but not anymore. Loans a part of the issue but the actual cost of tuition is a good place to start. Overpaid faculty exploiting adjuncts etc. This topic and the discussions on affordable housing taken up by the out of touch always makes me laugh.
There’s no real help available. I never qualified for financial aid. My mom made just 1,000 too much. When claiming myself, they say I make too much. The government expects me to be able to afford rent, car, gas, groceries, health insurance, car insurance and college? I would have to work two jobs to afford college and wouldn’t be able to afford to survive.
You wonder why the poor doesn’t want to help themselves? Because the assistance would dry up. Middle class is worse off than the poor. Who helps us? Why are the middle class punished for doing everything right? The rich get more discounts, connections and excuses! The poor get help and excuses.
I’m tired of talking about sex, race and age. Let’s talk about how just because I don’t have a college education and debt, that I don’t deserve vacation and sick time. Because I don’t have a degree, I’m not allowed the same rights as you for breaks and wage? Because you wasted your money and time on a career you hate, that entitles you to make more? So silly. So messed up in countless ways!
I totally understand paying someone a living wage and vacation and sick time, but no, you don’t get the same wage as someone who is educated. And you shouldn’t. Getting an education is a specialization of sorts; you get paid for your skill.
Actually this is very sound financial advice and my wife and I are doing the exact same thing. Also instead of paying extra on the 4% mortgage, we invest that too!
CB, pay off your discover card if there is interest accruing. Your credit score does NOT benefit from keeping a revolving debt. It does benefit from showing about 5% overall utilization, but you can pay it off monthly.
It’s really not. His 15 minutes could be up at anytime, and student loans are not bankruptable anymore. It will hang over his head for the rest of the life. You do not want to be in hock to the gov’t.
Courtney: Wayne’s actually correct. If you invest your money you actually make more money than what you’d save by paying off the debt.
Thinking about all those college students who are Not Teller and have nothing to pay off their lifetime loans for a worthless bit of reading novels.
I bet that’s the way he gets the ladies. Nothing screams “sex appeal” more than a man bragging about not paying his student loans. How is he not married?!
Lol, BengalCat
+1 Don’t really see the point in over sharing either. Whether people pay or don’t pay off their student loans early is a personal decision, and as opposed to Angelina Jolie sharing your personal situation doesn’t really help anyone. His 15 min. of fame may be short with his amazing PR style.
I would love to know what his interest rate….
I guess I’m one of three people on this board who actually thinks that not paying off his loans at an accelerated rate is a smart thing.
My college tuition, including housing, books, and supplies was between $10,000-$11,000 a year. Granted that was 17 years ago, but still…..
If I ever have kids, I’m making them go to trade school. They call become electricians or plumbers and make bank WITHOUT the college debt.
I have loans for my daughters and pay them off monthly. As long as he pays it (monthly or whatever it is set up for), he should be okay. But not paying the loan (which I don’t think he is doing, I just think he doesn’t know what he pays and doesn’t pay because he has an accountant for that type of thing) will tank your credit pretty quickly. I keep my loans (they’re at 6%) because the interest I pay can be declared on my taxes. So it is a win-win situatior for me – makes my credit score better and I get a tax break.
I think it’s smart for regular people who need to build up their savings, retirement, and emergency fund. I used to pay extra on my mortgage, but in recent years stopped to put extra money into those things.
If I were being paid what he probably is, I would first make sure those other things were in good shape and would then want to clear any lingering debt.
I get where you’re coming from.
I’m just saying that if I were him, I would do what my business manager told me to do. Those guys know what they’re doing and they’re not trying to bankrupt the guy who pays them, you know?
I think it’s smarter for regular people to accelerate their payments because the difference you pay in interest over the standard loan repayment and an accelerated version can be massive. I think for Miles that’s probably not such a big issue depending on how much debt he has because he makes millions. The difference wouldn’t be so great that he’d worry about it ya know.
I would agree with you if he were a peasant like us but presumably his paycheck is a lot heftier so his financial picture is likely quite different from the average Joe. I actually took more issue with the way he so casually dismissing everything he learned then “forgot, “so it probably clouded my feelings about how he’s handling the financial aspect of it.
In any case, our high school district is really on top of how expensive the traditional four year university route is in the US and is doing interesting things to help students figure out where their strengths and interests lie before just diving into an expensive four year school where the experience might not be the right fit for them. One example is encouraging kids to do two years of community college, which is an inexpensive way to get a lot of required coursework out of the way, before finishing up their degree at a 4-year school. For someone who may not have the grades or finances to get in right out of high school, I think it’s a great option. I also like the idea of a gap year and wish it were more common here. I also think trade schools might experience a bit of a resurgence as more people realize the traditional college route might not be for them.
That sounds like a really good idea. I knew the field I wanted to go into and it required 5 full years (yup, 5, lucky me) in that major, but if a student isn’t quite sure what they want to study or can get some basic credits out of the way first, community college is an excellent choice. I’d think it would also be good for those who aren’t fully ready for college. I know 2 different guys who started at PRICEY private colleges and ended up dropping out within a year or two because it “wasn’t for them”. Tens of thousands down the drain.
I graduated from a huge university 15 years ago. My out of state tuition was $16K/year. It’s now $32K. It’s insane.
…That number is beautiful. Damn. Tuition, housing, books? I wish we went back to that.
@Kitten: count me as #4. I’m actually quite surprised at the reaction folks at having to this, because it’s sound advice. Word to the wise: either get comfortable with Finance, or find a good advisor and then tale their advice.
@Kitten and @Bridget – I’m #5! And +1 to the trade school idea. My cousin and I were the first in our family to graduate from 4-year universities (yay us!). One of my other cousins went to a trade school and now, with overtime, he sometimes makes more than both of his college-educated cousins combined.
This pisses me off. I spent 15 years paying off my student loans and this rich asshole can’t be bothered? Give me a break. How out of touch can you be.
$54,000 for me and counting! I graduated in 08…you know, when the market exploded. That was fun. Haven’t had kids yet because of the debt and think I’ll be in my mid thirties before it even happens. All for a piece of paper and a job not in the field of studied I entered, yay!
I’ve been the Dream Crusher/Reality Check for all the cousins behind me any time they ask for advice. My aunts are saying I’m mean. I say I’m just being honest. This crap is no joke. My credit was screwed up before I even started.
Okay–I finally figured out who he looks like…Ben Savage (Cory, from Boy Meets World) but with his face more smushed (like a book hit him in the face).
Shame on me for saying this, but, he’s not that cute however I feel like he’s great in bed. Ugh.
Dani, I agree! He’s a douchebro but I get the feeling that the sex would be crazy hot. Probably because you would have to gag him to keep him from opening his stupid mouth.
Hahahahaha if you put a bag over his head/gag him it’ll probably even better than I imagined. He just has this like weird bro effect where you wanna choke him and bang him at the same time.
@ dani, lol! He reminds me of the guy at your job or school who is completely arrogant and acts contrary to everything you say, but then you find yourself banging him on the DL after a few cocktails.
I don’t think I’d need a few drinks. Ugh the shame!! At least I’m not alone.
Maybe it’s good financial advice but if I had his money, I wouldn’t be bragging about not paying my student loans. He sounds like a jerk.
Sorry to be gross and a bit off topic (barely above water with student loans here) but…in that picture, it looks like she has a stain on her dress, and his fly is open?
Sara, Excellent detective work! Did we hire you already for fashion CSI? If not, come and pick up your badge and gloves.
Ugh, I can’t unsee that! Probably banging in the limo. Which is fine, we’re all adults here, but check your clothes before you get out of the car !
Some of us have immature humor, speak for yourself!
I had friends who decided to attend NYU despite getting not-great financial aid packages. They have massive student loan debt. Their own fault of course, but it seems like everyone who goes to school there graduates with a lot of debt. Hardly seems worth it to me. I mean, …it’s NYU. Good school but it ain’t Harvard.
I had this person on FB who posted this letter that this chick had sent into the president of NYU. It was all about how her parents and grandparents had worked hard and she had a decent sized trust fund going into NYU and she got loans and everything, but after 2 years she was in debt and couldn’t afford to finish out her schooling unless they agreed to loan her more money. It was this massive boo hoo about how people should be able to go wherever they wanted regardless of $$ and how dare NYU not agree to loan her massive amounts of money.
Look, our system is far from perfect. But it it what it is, and if you can’t afford to go to NYU (or don’t want to get a job to help pay for it) THEN DONT GO TO NYU!!!!
I think I read that too. If it’s the same person, her math was WAY off to begin with, and looking at what had been saved, she never should have thought she could attend such an expensive school. I remember all the comments I saw where pretty much the same “…then go to a different school.”
Along the same lines, I have some friends whose son they have saved enough money for four years at most colleges, but they refuse to give it to him for certain majors where your odds of getting a decent paying job are not very high. Not sure I like the idea, but I can understand the sentiment.
Well, it is their money, they get to make the rules. I guess he could always minor in what he really wants to do if he doesn’t want to finance it himself.
Those sound like good parents with some common sense. They want their son to be prepared to support himself and provide for himself in life, as we all should. Pursuing other passions is a luxury that he can provide for himself later, when he can afford to.
Ugh he is so unlikeable. Every word out of his mouth matches his insufferable, smug face.
I agree Irene. I just do not like this guy. However, you can also claim student loan interest on your taxes and that might be another reason why his financial advisor has it at a low priority to pay off.
I’d love to be debt free and one of the things I want to see gone is my student loan.
You can only do that if you make under a certain amount. If you make more than 200K (don’t remember the exact figure) then no you can’t claim that deduction. Which I highly doubt he does make less than 200K.
@Korra, I did not know that. I am sure he does make over 200K. Thanks for the info!
I looked it up. Apparently the rules are much more stringent than I thought.
https://ttlc.intuit.com/questions/1901536-can-i-claim-the-student-loan-interest-deduction
I went to a financial adviser not too long ago and he rated my student loan debt as lowest priority, even though I have a *lot* of student loan debt. I asked him why and he said it’s partly because my interest rate is low and locked, so the payments won’t ever go up, but also because there’s no benefit to paying ahead of schedule. He wants me paying more on my mortgage because it increases my equity which will help me if/when I sell my place. As long as I am able to afford my student loan payments, which I am, he said to let it ride and focus on building equity in my home, contributing more to retirement planning, and socking away cash for a rainy day fund. It sounds counter-intuitive but once he explained it to me, I saw my adviser’s point about focusing on equity instead of the student loan stuff.
“But I’m the kind of person tempted to pay off her credit card bill in full every time. Just sitting here, knowing that I have an outstanding $250 on my Discover card is making me feel itchy.”
No the feelings you have are good. You need to pay off the balance in full every time you receive your statement. And you should never charge more than you have in the bank. Carrying a balance does nothing for your credit score but make you pay interest. You can improve your credit score with just a credit card and never having to pay a single dime of interest.
Student loan wise. I can see why it’s more financially prudent for some people to just pay the minimum on their student loans if it’s less than a 4% interest rate. Anything higher you need to get rid of. The idea is you get a better rate of return on other investments so it’s not worth it to pay off a student loan quickly. It is also dependant on the mindset of the individual. Some people don’t like debt hanging over their heads so they accelerate. Some people don’t mind some debt so they pay off slowly over time. Some people any debt is bad so they avoid a student loan debt or a car loan debt altogether. I’m a mix. I paid off a HUGE chunk of my student loans. I had 28 K starting in September when I got that scary letter and have now 24 K. My goal is to have the higher than %4 interest ones paid off in 1-2 years if everything goes according to plan. I’ll only be able to accomplish this because of Obama’s payment plan. Thanks Obama!!! (possibly the first sincere thanks obama in existence).
I’m one who hates to have debt…it makes me crazy, even though I have a good income (as a financial aid advisor for a university, actually!). My student loans were also 28K. I paid them off in 4 years because knowing I was paying interest made me crazy. Paying interest is like just setting money on fire; it’s a waste. I work for what I have and if I’m going to give money away I am going to choose who gets it, and it’s not going to be some finance company.
honestly, i’ve heard the same thing in regards to the low interest rate. i’m very much the person who likes paying off my debts, but husband has the miles teller frame of mind.
i kinda feel if i pay of my student loans within a time-frame i should get a hand-written letter from at least the secretary of education thanking me. because i know so many people who don’t consider this debt a priority or even plan on paying it off.
There is so much about the student debt mess that could be revised/improved, and one think I think they should do is some kind of reward for paying off your debt. Perhaps as a tax credit or something. Not anything too huge, but just like a little bonus to encourage more repayment. One reason the interest rates on student loans can get out of hand is because so many people default on them, the banks get whatever they can while they can.
He gives off such a smug vibe, like a young John Cusack … a**hole.
It does not make sense to not pay off debt if you have the money to do stuff.
The arguments about low interest rates and tax credits, etc work if you legitimately cannot afford to pay it off or if you need to focus on high interest debt. But if you are not in the poor house and can afford to pay off your debt (which I’m sure Teller can) it makes no sense to keep in around.
It’s like people I know who could pay off their homes but don’t because they get a deduction for the interest. Not realizing that if you didn’t have a mortgage in the first place, deducting your interest would be a non issue, because you’d have whatever money you are spending on your mortgage each month in your pocket!! And that is going to be more money than what you are getting as a tax deduction.
Actually it does. I know it sounds counterintuitive, but your money if you invest it properly can return much more than the interest you end up paying. That’s why you invest a certain amount earlier on than later. The power of compounding interest.
You have to assess whether that works for you situation or not. How debt/risk averse you are. And then you have to put a smart plan in motion that accounts for your needs and for how you feel about debt but still makes your money work for you.
For miles it probably doesn’t even matter. The interest he pays is a drop in the bucket compared to what he’s making and what he could make investing it. It’s a non issue. He can pay it off if he wants or he can just invest that money and take his time. I’m sure he’s financially secure (esp if he’s got an advisor) to be able to afford the moment he stops getting offers.
The other problem is if you pay it off in its entirety, but have no rainy day fund, and you still have a car loan and a mortgage, you are assuming you may never need the money you paid on the student loan. What if you have an illness that requires money you gave to your student loan. If you at least paid off the car or more on the mortgage and you had a problem you could sell the car, home, or get a home equity loan. Also, there are some breaks with a student loan, where you can renegotiate the loan term or defer monthly payments, very hard to do with a mortgage or car loan. Both paying or not paying can be a risk, it is personal how much risk a person is willing to take and how they view it.
I live in ireland but grew up in america. We have ‘fees’ for university education of about 1500 bucks all in. It used to be totally free. People here still complain its too much. Healthcare is basically free too although busting at the seems.
and taxes aren’t that bad if you and/or your partner make less than100k a year each. Its great! Yeah except it rains 362 days of the year
Unrelated comment — that woman with him is wearing a seriously tacky dress.
It’s great advice for high earners. I haven’t paid off my (very large) student loans either, even though I could afford to, because I earn far more in interest than I’m paying in interest. By paying the minimum and investing/saving the rest of the money, I’ll end up about 100k better off than if I had just paid them off when I first could have. That pretty much covers the loans, so this way I’m basically getting my money back as I slowly pay them off.
Wow, that last picture. She’s only with you because you’re a famous actor.
My hubby said the same thing to me when I still had my school loans at .5%. And yes, this helps your credit and possible tax write-offs blah blah. I finally paid off the last thousand b/c I wanted to be gone!
BTW – That dress…fugly!