Law School Graduate Pays $114K Student Loan in Cash
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By Kathryn Knight Randolph
June 01, 2012
What would you give to pay off your student loan debt in one, sweeping payment? Better yet: what would you give to see the look on the bankers’ faces when you did so?
Alex Kenjeev, a graduate student from the University of Toronto and venture capitalist for O’Leary Ventures, did just that, according to Business Insider. The former law student had been making the bare minimum payment on a $190,000 loan bill since he graduated in 2009.
But when he finally had $114,460 in cash, he decided it would be “funny” to pay the full balance on his student loan bill all at once, as reported by Business Insider.
Apparently, though, the banks didn’t think it was very funny. Business Insider reports that “when Kenjeev showed up at the Royal Bank of Canada to withdraw the cash, the management initially refused him. Then they told him he’d have to pay a transport fee to have it delivered by armored truck.”
After three days, however, he was able to pick up the cash, which he immediately took to Scotiabank, who held his student loan, according to Business Insider. It took the tellers there over two hours to count the cash, but when Kenjeev walked out, he was student loan debt free.
Looking back at it, Kenjeev told Business Insider, “I was pretty naïve. I didn’t really realize how much of a hassle I’d cause for everybody. You just look at things and you figure cash is simpler than anything else.”
While Kenjeev’s situation is ideal for most students with student loan debt, it’s not realistic. But there are ways for graduates to get ahead on their student loan payments. Mark Kantrowtiz, national financial aid expert, highlights various ways to pay off your debt quicker.
What do you think of Kenjeev paying his student loan in cash? Was it brilliant or “naive?”