I dont see anything here I would disagree with. So how is trying to avoid federal student loans poor advice? Especially if there are better options out there.
I took economics in HS. My classmates were mostly college bound students. Small class.
I am not suggesting there is a universal "best", and my "kids" post a bit later shows clearly the "most money" is not my definition of a good and worthy life. But there are choices that can make achieving our self defined "good life" easier and choices that can make it harder. My replies on this thread were largely in response to the premise that avoiding govt programs is universally good, or that avoiding debt is universally good, or in response to what considerations would I suggest if someone was trying to map out this complex problem set. No advice can be universal, and my definition of a good life is not universal. But it is fair to say, some rigorous thinking about the choices in front of us is beneficial and that a fairly large portion of society can benefit from some fairly simple guidance. (such as, complete high school and do not have a child before marriage dramatically improves your chances of not living in poverty)
I read those sentiments to suggest that federal loans are somehow worse than non-federal loans which is simply not what the market and data show. I also read between the lines to suggest generically that any debt is bad -- which is not at all true in any economic discussion.
I agree - if folks just aren't up all that kids entail then so be it -- I was reacting to the premise that NPV or early retirement are particularly compelling reasons for that decision. But as you also pointed out - it may be self fulfilling for the good.
Where are you finding private loans? I’m curious.
I agree it should be offered/encouraged, just not mandatory.
I am not aware of many classes that teach practical and effective understanding of money in a "household" sense. Econ 101 is about the premise of capitalism, not how to consider how big a mortgage one can carry. It's a real bummer.
I know of a number of banks that still provide student loans. HOWEVER, you are right in that banks are backing away from it. The problem mostly is with people that dont pay them back. Most that I'm seeing that still offer a student loan are graduates going to Grad school. But even that is scaled back.
Excess frugality and lifestyle extravagance both leave a lot to be desired when it comes to financial knowledge. Life is balance. I grew up with poor kids, kids from frugal families, well off kids and a few rich kids, few of them knew anything about actual money management or life - money was either something they didn't have or did have through no account of their own.
Not that everyone agrees on the practicality of it or Dave’s way of handling money but I know this is offered in a lot of high schools across the country. It is in our local schools but as people have said above only the kids who want to take something from it are going to
I couldn't agree more.
If I remember correctly (it's been a minute). That class we had fictional bills and a check book to balance etc and I think we only touched on that for like a week or two. All seemed pretty basic and to be honest at that point (freshman or sophomore in HS) I already had a checking account of my own prior to that class. But hey, choir or band was mandatory for 4 years of high-school and 3 years of Junior High.
And boy was I good at $&@ing trombone…. Does wonders for me in the auto industry…If I remember correctly (it's been a minute). That class we had fictional bills and a check book to balance etc and i think we only touched on that for like a week or two. All seemed pretty basic and to be honest at that point (freshman or sophomore in HS) I already had a checking account of my own prior to that class. But hey, choir or band was mandatory for 4 years of high-school and 3 years of Junior High.
I think we should really have some basic life skills in there somewhere. I can balance the hell of out a check book but basic carpentry, plumbing or electrical would’ve been really handy too…
A thought banks will still loan with a co-signor? not exactly up to speed on it lately and over the last 10yrs things might have changed. Sallie Mae is still around and a google search for student loans has a lot of ads.
www.salliemae.com
250,000 financial advisors would probably be against that idea. But let's be honest and say people understand the decisions they are making. They just minimize the consequences in their minds. There are a lot of people that have figured out how to navigate the various federal and state bureaucracy and minimize the reportable income so they can get on Medicaid.
That triggers a whole other lawyer rant - folks who somehow after they hear about the risk and make the choice to proceed anyway somehow seem to think the risk went away and behave consistent with their clueless re-write of reality.
