22 year old college student blows $90K, cant pay for tuition

[AZDude]

http://finance.yahoo.com/news/a-college-student-blows-inheritance-bert-show-205833329.html

Interesting read. Hope her degree is in something useful...

[klystomane]

Good read. I often wonder to myself, what would I do as a parent if my kid ever got herself into a similar situation? Ideally, I will raise her properly and therefore she will never end up in a hole like this, but obviously anything can happen.

If I bail her out, then I might end up in a financial mess myself, with no guarantee that my child has learned her lesson or will become a better person.

If I don't help her out, she could either continue sink into oblivion, or she may figure things out, bounce back, but become resentful and become estranged from me in the later years of my life.

Kind of a tough spot either way I think.

[Alabaster]

Wow, that passes for journalism?

[sheepstache]

HA HA HA, the interview quotes from her are great. But to be fair, it sounds like she didn't "blow" 90k. She had 90k and paid tuition out of it for 3 years at $20k a year. So 60k of it went to tuition and 30k to living expenses, or 10k a year, which is not crazy.  Or am I missing something?

I mean, yes, if she understood that the 90k was all she was getting, she should have realized it was unlikely to cover everything and gotten a job. Though there's a small chance that, since as far as we know her parents haven't paid anything at all up to this point, there was a misunderstanding and she honestly thought they were going to chip in once the grandparent money ran out.

[zephyr911]

HA HA HA, the interview quotes from her are great. But to be fair, it sounds like she didn't "blow" 90k. She had 90k and paid tuition out of it for 3 years at $20k a year. So 60k of it went to tuition and 30k to living expenses, or 10k a year, which is not crazy.  Or am I missing something?

I mean, yes, if she understood that the 90k was all she was getting, she should have realized it was unlikely to cover everything and gotten a job. Though there's a small chance that, since as far as we know her parents haven't paid anything at all up to this point, there was a misunderstanding and she honestly thought they were going to chip in once the grandparent money ran out.

In fairness, while I may have learned the concept of extrapolation in high school, I understand that that is no longer the norm.

[sheepstache]

HA HA HA, the interview quotes from her are great. But to be fair, it sounds like she didn't "blow" 90k. She had 90k and paid tuition out of it for 3 years at $20k a year. So 60k of it went to tuition and 30k to living expenses, or 10k a year, which is not crazy.  Or am I missing something?

I mean, yes, if she understood that the 90k was all she was getting, she should have realized it was unlikely to cover everything and gotten a job. Though there's a small chance that, since as far as we know her parents haven't paid anything at all up to this point, there was a misunderstanding and she honestly thought they were going to chip in once the grandparent money ran out.

In fairness, while I may have learned the concept of extrapolation in high school, I understand that that is no longer the norm.

Sure, I'm just talking about the use of the term "blow." If your grandparents gave you money for college and you spent it on tuition, I don't see how that can be called "blowing it." It sounds like at the very least she only blew 30k. I was expecting a fun story about how she bet all of it on black before starting freshman year.

[Ryo]

For those of us who weren't taught money management skills growing up, there comes a point where those lessons need to be learned out of experience.  She sounds she's getting this valuable lesson at the relatively early age of 22.  Also, kudos to her parents, who are dealing with it in exactly the way they should.

[Taran Wanderer]

This girl is being ridiculous.  She got a free three years of college, including a trip to Europe, and now she might have to work or take out a loan for the final year?  What?  Tragedy of all tragedies!

And for those who take offense to her being called a girl, I'll change it to woman when she steps up and decides to be an adult. 

[Zamboni]

That article was worth it for her quotes and the little movies they inserted in between each one.

Here is my favorite bit of her self-entitled whining:
“[My parents] said there was nothing they could do for me. They’re not being honest with me saying they don't have [money] because my dad has worked for like a million years and they have a retirement account.”

Wow. Just wow. I would hope any slight chance of getting some help from her parents got squashed when her dad heard that comment.

Over 4000 comments posted after that article!

Amended to add that I did learn something from this article: I learned that I need to start doing some banking in person and taking my children with me! Because when I was a kid my parents went to the bank in person and took me along, the tellers were always nice and gave me a lolly pop, so going to the bank was always a normal or even pleasant thing to me. Apparently Kim's parents didn't do that, and so she thinks having to go to a bank to do something is unreasonable. So now it has occurred to me that I do almost all of my banking online or at an ATM, so my children don't really understand the process and forms there. I'm going to have to manufacture some reasons to go there in person and have them help me fill out the forms!

[clifp]

I actually listened to the whole interview.  I was a really entertaining.  My favorite part was where she was protesting that she had to actually go inside the bank to apply a loan.

[shelivesthedream]

Hah! I'll take the point made earlier about 90k not being that much if you have to spend 20k/year on tuition, but surely even she could have said "Hm... 90k and a four year college. 90k/4 is 22.5k/year. Minus 20k on tuition that's 2.5k/year to live on. Not enough!" It's the attitude that shocks me more than not having done the simple maths. The fact that she though that her parents should spend their retirement money on her degree. That getting a job would be embarrassing! "I should et everything paid for because I deserve it just for existing!"

(I speak as someone whose undergrad was paid for by family, although I did get a loan for tuition and invest the money instead. I didn't work for money during term or holidays, but did several unpaid internships. But you know what? I was so fucking GRATEFUL for it, and I view it as the lucky privilege that it is.)

[Abe]

My parents paid for my college, but I worked part time all three years out of principle and to learn what the real world is like. While I obviously got a huge amount of support from my parents, I never "expected" it and always saw it as the gift it is. If it would've been a financial burden I would have not taken anything from them. Someone with this lady's attitude will not get far in life.

[onehair]

I was struck by the facts she spent money on clothes and her European trip.  No thoughts of the future whatsoever...Blowing 90k?  Wow doesn't begin to cover it....

[KodeBlue]

Life is so unfair. Why doesn't the world recognize her uniqueness and just hand her everything?

[MgoSam]

Yeah her quotes sounded entitled and spoiled, but I think that this could be the first time in her life that she may not have had something handed to her. It may be the first situation she has where she actually has to do something for herself, and in this case, I hope that it is a good learning experience. I don't see any use in being harsh on her.

When I was 21, I had lived solely off my parents' money. It wasn't until I had to struggle to find a job after college that I learned how to budget, how to cook, how to plan, and how to do many more things. This was completely my fault, I cannot blame anyone else, and right now, I am thankful I learned how to do this then and was able to learn fast.

I hope she gets it and becomes stronger and more independent as a result.

[KCM5]

Entitled and spoiled is right - but hopefully she filled out the FAFSA rather than going to a bank to get a loan. I remember trying to figure out getting a loan outside of federal student loans and it was 1) really confusing 2) when I finally did get the loan, the rates were ridiculous (12%!). Also, for the record, I never had to walk into a bank to do it ;)

My parents didn't pay for my college (although they did give me a cheap car and gas to get home) but when I explained to them the process of getting this loan and the rates I was being offered they paid it off for me. I always worked at least two jobs so its not like I was irresponsible. Just young and confused.

Anyway, I don't know what my point was, but in general, becoming an adult doesn't just happen and good on her (and her parents) for slowly getting there.

[LiveLean]

Plus, she's from Georgia, which has the very attractive Hope scholarship that's easily attainable by many kids, keeping expenses way down if they stay in state. The same is true here in Florida, where we have the Bright Futures scholarship program and a very attractive college prepaid program -- where grandma's money should have been placed.

I never understand the stress about college expenses. Tell your kids they're staying in state and going to a public school. Do the college prepaid as early as possible and, if you live in state like GA or FL, raise your kids to be academic achievers so they nail that funding, too. That goes for any other state, too.

Our guys are 12 and 10. We don't spend a minute worrying about college expenses.

[KCM5]

Plus, she's from Georgia, which has the very attractive Hope scholarship that's easily attainable by many kids, keeping expenses way down if they stay in state. The same is true here in Florida, where we have the Bright Futures scholarship program and a very attractive college prepaid program -- where grandma's money should have been placed.

I never understand the stress about college expenses. Tell your kids they're staying in state and going to a public school. Do the college prepaid as early as possible and, if you live in state like GA or FL, raise your kids to be academic achievers so they nail that funding, too. That goes for any other state, too.

Our guys are 12 and 10. We don't spend a minute worrying about college expenses.

This girl was somewhat put in a very different position from where you'll put your children. She was given $90k and it doesn't seem like she was given much guidance. She knew she was to use if for college expenses and apparently won't get help from her parents. It seems like with a bit of guidance it could have been a great lesson on how to manage money. She's getting that lesson now, of course, but perhaps it could have happened sooner.

[SwordGuy]

She was spoiled rotten and I doubt she would have listened to any guidance until the gravy train of free money ran out.

[bennycx]

My parents paid for my college >$100k in total, however my Mustachian ways have built me a stache almost 3x the amount within 3 years of working after graduating (job would be much more difficult to obtain without this college degree) so I guess it was a good "investment" afterall

[Merrie]

It's almost... un-American to NOT blow college money on beer and hookers. Where have our standards gone?

Makes me think of my ex-boyfriend who used to reminisce fondly about how freely the booze had flowed at the parties in college because "we were incurring debt, not paying it off".

$20k a year could be in-state tuition in this day and age. (or was it tuition, room, and board, and she blew $30k on other stuff?) I think it's important to live frugally in college, but I did go to a small private college where I had scholarships and work-study, and I have some loans still but my parents paid a lot as well. I really value my college experience and I think a big state school would have not been a good experience for me, at all. But at the same time I would like my children to have a good college experience rather than taking classes and working their tails off as a means to an end, I'd rather not shell out $50k a year or whatever college costs by the time they're the right age. I think there are several different ways we can approach this--scholarships, exploring ways to make a big school 'smaller' or more personal, community college credits in high school, attempting to socialize our kids properly which was something my parents really sucked at... the list goes on.

[Tabaxus]

One of my parents (the one that actually raised me) passed away when I was 17.  I received a $100k life insurance check as a result.  It was all gone by the time I hit my last year of undergrad and I ended up with about $15k in loans.  And I went to a shitty state undergrad school.  I had grown up in a lower middle-class household, had very little guidance, and it all just kind of bled away.

So, I'm not surprised by this story.  That said, the person's attitude is appalling.  Once I kind of came out of my haze and realized what I had done, I buckled down.  I certainly never blamed anyone, though I didn't have an easy target to blame/think that they should give me money.  This ended up being an expensive, but very valuable lesson, and I've managed not to go down the same path now that I'm making my own money.

[LeRainDrop]

Plus, she's from Georgia, which has the very attractive Hope scholarship that's easily attainable by many kids, keeping expenses way down if they stay in state. The same is true here in Florida, where we have the Bright Futures scholarship program and a very attractive college prepaid program -- where grandma's money should have been placed.

I never understand the stress about college expenses. Tell your kids they're staying in state and going to a public school. Do the college prepaid as early as possible and, if you live in state like GA or FL, raise your kids to be academic achievers so they nail that funding, too. That goes for any other state, too.

Cheers to this!  It seems to me like knowledge of the Hope scholarship in Georgia is extremely widespread here.  Unless the girl had been hiding under a rock, she should have known to keep her grades up in high school and then go to UGA.  $90k at that point would have been gravy.

[MrsPete]

I don't get it. 

She knew she would have 90K to put herself through college.  Wouldn't an average person be smart enough to divide by 4 years and figure, I can afford to spend 22.5K each year ... what can I afford for that price?  Actually, a one-step-up-from-smart person would've said, 20K per school year, reserve 10K for start-up costs in case I need to move to new city for my first job, need work clothes, etc. 

She really does come across as stupid, entitled and spoiled. 

[MgoSam]

I don't get it. 

She knew she would have 90K to put herself through college.  Wouldn't an average person be smart enough to divide by 4 years and figure, I can afford to spend 22.5K each year ... what can I afford for that price?  Actually, a one-step-up-from-smart person would've said, 20K per school year, reserve 10K for start-up costs in case I need to move to new city for my first job, need work clothes, etc. 

She really does come across as stupid, entitled and spoiled.

I think she figured that things would work out for her. This can explain her shock that her parents aren't going to bail her out, or co-sign a loan. This may well be the first time that she's dug herself a hole that she needs to get out of by herself.

That said, there are so many college students that would love to be done with 3 years and been debt-free. My guess is that she'll finish with around 20-25k in debt, which assuming she gets a job and started paying it down aggressively, isn't too bad in the scheme of things. She's lucky to have grandparents that put money towards her college education.

[EricP]

I don't get it. 

She knew she would have 90K to put herself through college.  Wouldn't an average person be smart enough to divide by 4 years and figure, I can afford to spend 22.5K each year ... what can I afford for that price?  Actually, a one-step-up-from-smart person would've said, 20K per school year, reserve 10K for start-up costs in case I need to move to new city for my first job, need work clothes, etc. 

She really does come across as stupid, entitled and spoiled.

I think she figured that things would work out for her. This can explain her shock that her parents aren't going to bail her out, or co-sign a loan. This may well be the first time that she's dug herself a hole that she needs to get out of by herself.

That said, there are so many college students that would love to be done with 3 years and been debt-free. My guess is that she'll finish with around 20-25k in debt, which assuming she gets a job and started paying it down aggressively, isn't too bad in the scheme of things. She's lucky to have grandparents that put money towards her college education.

Based on what we have seen from her, I think it is unlikely that she will start paying it down aggressively.  A 0 down mortgage, car payment, some CC debt, and some financed furniture seem much more likely.

[expectopatronum]

I know they’re trying to teach me a lesson and blah blah blah and character building but, like, I hope they realize [working part-time] could have such a negative effect on my grades and as a person.

Because part-time work has such a negative effect on you as a person...

The quote about her parents "not being honest" with her because they have a retirement fund they could pull from takes the cake though.