Maybe I misconstrued your words when you said, “DON’T BORROW FOR COLLEGE”.
I assumed you meant it in absolute terms, which as mentioned I don’t agree with.
Yes, I was responsible but so are millions of other students over the past few decades. So it wouldn’t be fair to lump everyone in the same category as it pertains to student loans.
To me, it’s akin to telling someone they should never get a mortgage just because many were using them irresponsibly.
The truth is, any type of credit needs to be used responsibly. Whether it’s a mortgage, credit card debt, car loans, personal loans, home equity loan, student loans, etc.
Student loans are so vital and necessary for many people out there. And it is important to note that many are using them perfectly responsibly. Many people are very conscious about their field of study, etc. Sure, many aren’t but I don’t think it would be safe to lump everyone in the same category.
I always like to use real life examples and also see people that I personally know and their situations. Most of my very close friends in life all got student loans. And some younger friends as well. Not too many of my friends had wealthy parents that saved up and paid for their college education.
There WERE a few where their parents saved up a bit of college funds but it wasn’t nearly enough for what it actually cost so they still had to get student loans.
Sure, there are financial aid packages out there or grants, work study, etc. I got a few of those but it still wasn’t nearly enough to pay for everything. It was just the sad reality. Sure, I probably shouldn’t have joined a fraternity and had that type of expense but I wouldn’t have changed things for a second and had a wonderful college life.
I’m not sure if there are any studies or formal statistics to say what the actual percentages are of total number of people that get student loans and default on them or can’t quality to purchase a home due to it.
But I feel very comfortable in saying that people like me, the responsible ones that pay it back and are more responsible aren’t in the minority. I have plenty of friends that did the same thing.
My best friend and lawyer went to Harvard. His family was very poor. He did quality for some financial aid but he still had massive student loans. Then he had to put himself through law school with yet more loans. He was like me and paid them all back on an accelerated schedule.
All my old college buddies that did get student loans. I don’t know a single one that defaulted on their loans. I believe some did defer some when times were tough but the truth is they would have never gotten to where they are now without student loans.
So I AM a big proponent for student loans and using them intelligently and responsibly. But I actually truly believe that the vast majority of kids use them responsibly.
I absolute agree with the others it’s pure stupidity for some of these people out there to go into horrible majors. And I also think it’s highly questionable for older people to go back to school (if it’s expensive) later in life.
A woman that I knew that used to work for my company was making GREAT money for her position. She was an executive assistant and making darn good money (around $75,000) and keep in mind this was the late 1990’s so $75,000 was more back then. I can’t remember how old exactly she was but I’d say 50ish.
My company was really generous and took good care of people that stayed with the company and were loyal. So she would have kept getting raises and we gave bonuses too. Well, one day she says she is quitting as she is just not content with her career. I was really puzzled because she was already in her 50’s. I can’t even remember what she was studying but I believe it was law.
Well, by the time she finished no one would hire her. So it was money down the drain.
There are plenty of examples on both sides of the issue but definitely student loans are very important when used responsibly and intelligently, IMHO.
Sure, it does make sense to go to community college or other State schools, etc. But in life in many fields it DOES matter where you went to school or at least you will have a big leg up vs. other peers with the same degree from worthless schools. It’s sad but just life.
