I have given this advice to college students who have asked me for college/graduate school advice: please be prudent about taking out student loans (less is better). The loans must be repaid with interest.
It is not easy to borrow little given the increases in tuition costs. I want the students to owe as little as possible to
the gluttonous Sallie Mae.
Regarding Sallie Mae, the large educational loan
monster company, I have no respect for this organization. Sallie Mae’s business practices are often in direct conflict with the borrower’s interest.
For example, the rule making it illegal to refinance Sallie Mae’s consolidation loans is nothing less than
a demonstration of naked avarice despicable. Sallie Mae’s lobbying for the measure is all the more galling. (Google: Alan Collinge, Student Loans: A Cash Cow for Industry, Ball and Chain for Students).
If interest rates on a home mortgage go down, the borrower can refinance the mortgage to take advantage of the lower interest rate.