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Tuition Reimbursement – Save, Spend, or Repay?

This article was written by in Debt Reduction. 6 comments.

I received my latest tuition reimbursement check in the mail. Actually, I received the check some time in the past two weeks, and somehow I missed it. While my girlfriend and I were tidying up my apartment, she stumbled across the envelope in a pile of pre-approved credit card offers — all junk-mail — that I was preparing to throw away.

The check is for about $1,500. Every time I receive one, I’m tempted to leave it in my savings rather than apply it to my outstanding student loan. The loan’s interest rate is pretty low — I could get a higher return from some online savings accounts.

It just doesn’t strike me as the right thing to do at this point. Most of the time, I’m spending less than I’m earning. I might be tempted to use the money to purchase something I really don’t need yet, like the new computer a co-worker is trying to convince me to get. It’s better to apply to check to what it is destined, my education-related debt.

Updated September 28, 2007 and originally published April 2, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar Russell

I’d say your best bet is to pay it off! Being in any sort of debt can really hinder your abilities to maximize your prosperity. Don’t let the Dark Side of the Force.. wait, what?! If you want that laptop, write it down on a piece of paper and let it sit for a good month. Come back it to, then see if you really want it.

Ok, enough from a random teen you don’t know. :)

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avatar Amanda

Pay it off. It’s a great feeling to not have any student loans!

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avatar ib

wow. that reminds me of a few months ago when i was digging through our living room trash looking for something and i found an unopened envelope addressed to my boyfriend which clearly had a card in it (he had thrown it away with a load of junk mail flyers, etc.). it turned out to be his new driver’s license. :P he says he is going through the daily mail more carefully now.

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