Serving Bread

For those of you who have school loans know about ACS (Affiliated Computer Services, Inc.). They service education loans. They are an unimpressive company (last year, they lost one of their laptops with my wife’s social security number on it), and (excuse me for the slang) very shady! We have now received three letters from them letting us know that they have decided to defer Rhoda’s education loan. A deferment allows us to not make payments for the next 8 years. That’s right, ACS likes us so much that they want us to keep our money and not make the payments until 2014. What’s the catch? The catch is that the interest will continue to accrue and will be capitalized. That means that in eight years, we will have to make interest payments on the interest.

For those of you who get these offers, kindly trash them. This is not a wise way of managing your finances.