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May 25, 2012 10:00 AM Paying Off Student Loans, One Duffel Bag at a Time

By Daniel Luzer

One Canadian venture capitalist apparently decided to pay off his students loans all at once, much to the annoyance of the bank where he owed money. According to an article in the National Post:

To close his $114,000 University of Toronto student loan last week, Alex Kenjeev opted to pay by duffel bag full of cash. Mr. Kenjeev graduated from the university’s law school in 2009 and now works for Kevin O’Leary, a prominent venture capitalist best known for his appearances on CBC’s Dragon’s Den and The Lang And O’Leary Exchange.
Saying he thought it would be funny to pay in cash, Mr. Kenjeev’s withdrawal request at Downtown Toronto RBC branch was delayed for three days as bank staff collected and counted the cash.

After withdrawing the money he walked two blocks away to Scotiabank, which held the loan.
The staff was not exactly happy to deal with his request. Kenjeev apparently had to get the approval of management in order to pay off his loan in cash. “Some people have taken it pretty offensively,” Kenjeev said. “I actually think they have a point. It hadn’t really occurred to me.

No, they really don’t have a point. Banks, and their employees, exist to handle money. Customers are under no obligation, moral or otherwise, to deposit cash in a manner that’s convenient for the banks.

Scotiabank has collected interest rate fees from Kenjeev for years. This is just the cost of doing business.

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer

Comments

  • boatboy_srq on May 25, 2012 11:27 AM:

    Imagine, if the bank were this upset at actually having to handle paper currency, how all those poor put-upon financial industry folks would feel if Paulbots actually succeed in making gold an official medium of exchange.

  • Snarki, child of Loki on May 25, 2012 12:12 PM:

    Legal tender laws. They exist for a reason.

    Still, this is Canada. So no Ron Paulish goldbugs. Still, the debt *could* be paid off with Loonies.

    "I'm paying off my student loan" (shouts out the door to a large dumptruck filled with coins: BACK 'ER UP!) Chaos ensues.