Comments on: How I Plan To Help My Children Avoid The Credit Trap (Part 1) http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 05:27:53 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Livingalmostlarge http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-12163 Livingalmostlarge Sun, 13 May 2007 05:37:14 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-12163 I honestly believe it's easy to teach avoiding CC debt, it's much harder to teach to avoid student loan debt. Especially if you don't plan or can't help with college, which I think takes a back seat to retirement savings. I honestly believe it’s easy to teach avoiding CC debt, it’s much harder to teach to avoid student loan debt. Especially if you don’t plan or can’t help with college, which I think takes a back seat to retirement savings.

]]> By: No Credit Needed » Blog Archive » How I Plan To Help My Children Avoid The Credit Trap (Part 2) http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11649 No Credit Needed » Blog Archive » How I Plan To Help My Children Avoid The Credit Trap (Part 2) Wed, 09 May 2007 01:36:18 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11649 [...] (This is part 2 of a 2 part series. Click here to read part 1) [...] [...] (This is part 2 of a 2 part series. Click here to read part 1) [...]

]]> By: NCN http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11646 NCN Wed, 09 May 2007 00:23:40 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11646 Thanks for all of the comments! As someone who never had to "worry about paying for college" because "I did not go to college"... It's not my "place" to make definitive statements about what OTHERS should do... I'm just stating what I would have done, at age 19, if I had the mindset that I have now, at age 32, and I wanted to go to college. Does that make any sense? In a bit (maybe tonight or tomorrow) I'll write a post about what I plan to do so that my kids don't have to "worry" so much about this dilemma... Two more quick points... There are some jobs that can be done w/ or w/out a degree, and I think that people should consider their actual "goal in life' before spending thousands of dollars on an unnecessary (or unused) education... Emily, I think that their are plenty of parents who are not "wealthy" (in terms of the salaries that they earn), who plan and are able to send their kids to school... that's what my wife and I are planning to do! Thanks for all of the comments! As someone who never had to “worry about paying for college” because “I did not go to college”… It’s not my “place” to make definitive statements about what OTHERS should do… I’m just stating what I would have done, at age 19, if I had the mindset that I have now, at age 32, and I wanted to go to college. Does that make any sense? In a bit (maybe tonight or tomorrow) I’ll write a post about what I plan to do so that my kids don’t have to “worry” so much about this dilemma…

Two more quick points…
There are some jobs that can be done w/ or w/out a degree, and I think that people should consider their actual “goal in life’ before spending thousands of dollars on an unnecessary (or unused) education…

Emily, I think that their are plenty of parents who are not “wealthy” (in terms of the salaries that they earn), who plan and are able to send their kids to school… that’s what my wife and I are planning to do!

]]> By: Jill http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11629 Jill Tue, 08 May 2007 19:58:16 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11629 I agree with all of this to a point. I went to a private 4-year college and graduated with about $30,000 in student loan debt. The rest was taken care of by parental help, good planning and tuition payments. I think it's the best investment I ever made. Yes, I make payments every month but I didn't sell my education to the lowest bidder and was able to have experiences that I NEVER could've had at a huge state university or starting at a community college. I now work for a small, private college and I talk with students every day who are terrified of taking out student loans. And I really don't get what the big deal is. They're so scared to take out loans that they'd rather work Full Time at McDonald's for the next five years of their lives? That's just insane to me. I had some less than glamorous jobs after graduation just to pay my loans, but I'd rather have them than no degree. Or, even worse, taking 10 years to earn my bachelor's because I can only take one class at a time. I agree with all of this to a point. I went to a private 4-year college and graduated with about $30,000 in student loan debt. The rest was taken care of by parental help, good planning and tuition payments. I think it’s the best investment I ever made. Yes, I make payments every month but I didn’t sell my education to the lowest bidder and was able to have experiences that I NEVER could’ve had at a huge state university or starting at a community college.

I now work for a small, private college and I talk with students every day who are terrified of taking out student loans. And I really don’t get what the big deal is. They’re so scared to take out loans that they’d rather work Full Time at McDonald’s for the next five years of their lives? That’s just insane to me.

I had some less than glamorous jobs after graduation just to pay my loans, but I’d rather have them than no degree. Or, even worse, taking 10 years to earn my bachelor’s because I can only take one class at a time.

]]> By: Moneymonk http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11628 Moneymonk Tue, 08 May 2007 19:55:47 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11628 Your words sound good. But not too many 18 year old will follow it. Because of their peers might influence them. Sometimes it's good to let them make mistakes to learn on their own. Your words sound good. But not too many 18 year old will follow it. Because of their peers might influence them.

Sometimes it’s good to let them make mistakes to learn on their own.

]]> By: Emily http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11618 Emily Tue, 08 May 2007 18:18:57 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11618 While it may be possible to get a college degree without going into debt, it is very difficult to get a top-quality college education without either student loans or wealthy parents. The top schools in the country don't give "scholarships," only need-based financial aid, which will include some loans. For instance, the school I went to, being one of said top schools, did not give any scholarships for anything. Not for top students, not for athletes. Financial aid was based solely on your parents' income. First they determine what your parents "can" pay, then they give you $4,000 in loans per year on top of that, and whatever is left, they give you a grant. So I graduated with $16,000 of debt ($4,000 for each of four years). I also had part-time jobs during the school year and full-time jobs during the summer. There was no way around that either. Sure, I probably could have gotten a scholarship at a lesser institution, but I wanted that top-quality education. And it paid off in a big way when I applied to grad school: I got a full ride for a Ph.D. program, PLUS $30,000 each year to live on. Granted, I'm still repaying my undergrad loans, but I think it was worthwhile. While it may be possible to get a college degree without going into debt, it is very difficult to get a top-quality college education without either student loans or wealthy parents. The top schools in the country don’t give “scholarships,” only need-based financial aid, which will include some loans. For instance, the school I went to, being one of said top schools, did not give any scholarships for anything. Not for top students, not for athletes. Financial aid was based solely on your parents’ income. First they determine what your parents “can” pay, then they give you $4,000 in loans per year on top of that, and whatever is left, they give you a grant. So I graduated with $16,000 of debt ($4,000 for each of four years). I also had part-time jobs during the school year and full-time jobs during the summer. There was no way around that either. Sure, I probably could have gotten a scholarship at a lesser institution, but I wanted that top-quality education. And it paid off in a big way when I applied to grad school: I got a full ride for a Ph.D. program, PLUS $30,000 each year to live on. Granted, I’m still repaying my undergrad loans, but I think it was worthwhile.

]]> By: Beth http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11608 Beth Tue, 08 May 2007 16:30:55 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11608 I took out a few loans (I had some grants and scholarships) and went the 3 3/4 year plan--I didn't want to pay all the annual expenses of college any longer than I had to. I went to a college in a very small town, so jobs were nearly impossible to get. I didn't enjoy the high life in college--no new clothes unless absolutely necessary, no parties, etc., so I didn't have any credit card debt. I did pay off my loans within a year or so of graduating by moving back in with my parents after college. Fun? No. But I didn't want to start out my life worrying about how I was going to pay all my bills. My older brother graduated in five years, but ended up with no student loans at the end (he worked more or less full time at an internship that hired him after he graduated). If you take out loans, you need to live like you're poor and avoid spending more than you have to, in order to reduce the debt you need to incur. And have a plan in place to how you're going to pay it back. Moving back with my parents (thus cheaply) was an option I knew was available. I took out a few loans (I had some grants and scholarships) and went the 3 3/4 year plan–I didn’t want to pay all the annual expenses of college any longer than I had to. I went to a college in a very small town, so jobs were nearly impossible to get. I didn’t enjoy the high life in college–no new clothes unless absolutely necessary, no parties, etc., so I didn’t have any credit card debt. I did pay off my loans within a year or so of graduating by moving back in with my parents after college. Fun? No. But I didn’t want to start out my life worrying about how I was going to pay all my bills.

My older brother graduated in five years, but ended up with no student loans at the end (he worked more or less full time at an internship that hired him after he graduated).

If you take out loans, you need to live like you’re poor and avoid spending more than you have to, in order to reduce the debt you need to incur. And have a plan in place to how you’re going to pay it back. Moving back with my parents (thus cheaply) was an option I knew was available.

]]> By: Livingalmostlarge http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11607 Livingalmostlarge Tue, 08 May 2007 16:09:18 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11607 What I really believe from our experiences is that we did do college reasonably, not cheap, but moderate. DH worked and lived at home, I had scholarships and loans, worked 3 jobs, I started at 14 working, college at 16 and done by 20, so I was not out there partying. DH also took 5 years to work one year in a paid internship in his career field to be sure about his future career and make money for his move to the US, which he solely funded himself. I don't know if it's really feasible to finish college by one's self without help. I also don't know if it's wise, certainly not in our fields of science/engineering to take 6 years to finish while working menial jobs instead of getting out faster to a career paying better. I guess it depends. Would I change things? Nah, the student loans were tough but paid back in about 10 month after graduation. But we're back in student loan hell again, but if we don't invest in ourselves no one else will. FWIW, nearly 10 years after college DH works full time and goes to school nights for another graduate degree and where we live we couldn't go to a public university or else we would have (undergrads both were public). We've made it our goal to pay it off in a year if not with the signing bonus he'll get with finishing his degree. I've pondered college for my kids and decided if they choose to go I'm making it loan based. I'll pay for all grades above a B, but anything less they need to pay for it. Sure not ideal, and yes I'm dragging them into debt, but I worry that if I pay for everything they could party and flunk out. This way yes it's debt based but it's also tied to performance like a job. So they don't have to work, we'll pay for everything but only if they work hard and really appreciate it. What I really believe from our experiences is that we did do college reasonably, not cheap, but moderate. DH worked and lived at home, I had scholarships and loans, worked 3 jobs, I started at 14 working, college at 16 and done by 20, so I was not out there partying. DH also took 5 years to work one year in a paid internship in his career field to be sure about his future career and make money for his move to the US, which he solely funded himself.

I don’t know if it’s really feasible to finish college by one’s self without help. I also don’t know if it’s wise, certainly not in our fields of science/engineering to take 6 years to finish while working menial jobs instead of getting out faster to a career paying better.

I guess it depends. Would I change things? Nah, the student loans were tough but paid back in about 10 month after graduation. But we’re back in student loan hell again, but if we don’t invest in ourselves no one else will. FWIW, nearly 10 years after college DH works full time and goes to school nights for another graduate degree and where we live we couldn’t go to a public university or else we would have (undergrads both were public). We’ve made it our goal to pay it off in a year if not with the signing bonus he’ll get with finishing his degree.

I’ve pondered college for my kids and decided if they choose to go I’m making it loan based. I’ll pay for all grades above a B, but anything less they need to pay for it. Sure not ideal, and yes I’m dragging them into debt, but I worry that if I pay for everything they could party and flunk out. This way yes it’s debt based but it’s also tied to performance like a job. So they don’t have to work, we’ll pay for everything but only if they work hard and really appreciate it.

]]> By: Chris http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11568 Chris Tue, 08 May 2007 06:32:09 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11568 Good article. Like most people, I funded my education with student loans. To make matters worse, I never had a budget. I graduated from college at the age of 22 with over $19,000 in debt and it took me five years to pay it all back to Sallie Mae. At least I never had the credit card debt. If anyone reading this is considering a student loan: DON'T DO IT!! There are other (better) ways. NCN has listed some great suggestions. I now have a daughter and I will do my best to make sure that she does not repeat my mistakes. To help get her started, I just opened an Education Savings Account for her. Good article. Like most people, I funded my education with student loans. To make matters worse, I never had a budget. I graduated from college at the age of 22 with over $19,000 in debt and it took me five years to pay it all back to Sallie Mae. At least I never had the credit card debt. If anyone reading this is considering a student loan: DON’T DO IT!! There are other (better) ways. NCN has listed some great suggestions. I now have a daughter and I will do my best to make sure that she does not repeat my mistakes. To help get her started, I just opened an Education Savings Account for her.

]]> By: NCN http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/comment-page-1/#comment-11537 NCN Mon, 07 May 2007 20:56:21 +0000 http://www.ncnblog.com/2007/05/07/how-i-plan-to-help-my-children-avoid-the-credit-trap-part-1/#comment-11537 Sam, Well said! Thanks for the input! NCN Sam, Well said! Thanks for the input!
NCN

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