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Old 03-07-2011, 02:27 PM
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DavidBibby DavidBibby is offline
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Join Date: Jun 2010
Location: Palm Bay, FL
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Default Re: First credit card- good for credit rating??

Originally Posted by KatherineLee88 View Post
Sorry to get a little off topic... but...DavidBiddy, how are you suggesting people finance their college educations without taking out loans?

I wish I could say I have never paid a penny in interest... and I can for credit cards. But I pay $40/mo in interest on a student loan. I wouldn't have been able to go to college without it. I wouldn't be able to get my current job without my bachelors. I wouldn't be able to be in graduate school working towards a PhD without these loans.

Not everyone has the bank of Mom and Dad saving for their college educations with 529 plans. My parents didn't give me a penny.
Avoiding credit is impossible for most college students. College degrees are becoming a necessity in this society. What's the no-credit solution to this dilemma?

If a student has to take student loans, they've already enter into the credit-usage world. Bankruptcy eliminates credit card debt, but doesn't eliminate student loans (they cannot be discharged in bankruptcy, they follow you for LIFE). It seems that just trying to get a job in this world requires credit and college students already start out their credit debut into society with a loan that follows them for life.

I suggest we assume everyone can be taught personal finances and credit usage - and how to use self-control to maintain them. This is a better solution then the assumption that all should avoid credit because they lack self-control.
Please check the spelling of my name. It's David Bibby, not Biddy.

Without the help of parents college should be paid for by grants, scholarships, and WORK.

I'm not going to fault someone for getting a student loan, but I know of far too many people who are in TROUBLE with student loans.

The thinking that student loans will get you ahead is very naive. Students assume that when they get their degree, that they'll make more than enough money to start paying back their student loans.

That's not the real world. The reality is.. even after they get a degree.. they will start work with a new company (depending on the field) at or near the bottom. Many of these students will go BACK to school and pursue a higher degree, not for educations sake, but to hold off on paying back the student loans because they don't make enough.

Student loans, just like any other type of loans, can get people in trouble if misused. The thing about student loans though.. is that even though you get them for the right reasons, there is NO guarantee that you will get your desired salary when you leave school.

In the company I work for.. I work with people who have their degrees, certifications, and student loan debt too. They all make less than I do and I actually burned out of college. It seems bit unfair. The thing is.. experience and specialized knowledge is what companies are looking for, not a newbie with a degree.

So for me... I'd prefer to work my way through school and have NO debt while I build and add to my marketable skills (work experience), rather than have no work experience and a degree.

There are people I work with, making less than I do, but have $100k in student loan debt. I can't help but wonder... "how is THIS winning?"

My kids are 10 and 8 right now. I plan to fully pay for their college expenses. If for some reason I am unable to, they will find a way to pay for it. Between Grants, Scholarships, and good old fashioned work, I don't see the need for them to get student loans.
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