Author Topic: Hello! Should I be afraid of loans?  (Read 3437 times)

Tacosrocket

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Hello! Should I be afraid of loans?
« on: November 08, 2015, 10:19:36 PM »
Hello Mustachians,

I am 23 and for many years have been scared of going to college. I really don't know if I would do well (I tried taking a community college remedial math class over the last summer and failed spectacularly) but I also don't want to end up living pay check to pay check some day, but college loans scare the ever living fuck-paste out of me, especially if I don't end up with top grades. I'm very scared of debt.

But if I could borrow as much money as I needed without having to worry about how I'm going to pay it back even if I don't do well in college because mustachionism is magical like that, then it would almost seem like a nothing to lose situation.

Can following the principles of mustachionism erase at least some of the life crushing danger of student loans?

Thanks in advance for reading!

Jouer

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Re: Hello! Should I be afraid of loans?
« Reply #1 on: November 09, 2015, 08:16:57 AM »
I had $30k in student loans when I graduated, mostly because I was an idiot. I could have probably gotten out with $20k, if I played it smarter.

anyways....fast forward 15 years and I do math in my pajamas at home for a 6-figure salary. I'd say the loans were worth it.

gillstone

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Re: Hello! Should I be afraid of loans?
« Reply #2 on: November 09, 2015, 08:21:58 AM »
You don't need to go to a 4-year college.  You can do a vocational program and learn to be a plumber or welder or electrician or mechanic or any number of skilled trades.  Vocational programs tend to cost much les than a year of college tuition so loan will be smaller.  A final consideration is that a vocational degree will get you much better pay than a Bachelors in "General Studies".

Goldielocks

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Re: Hello! Should I be afraid of loans?
« Reply #3 on: November 09, 2015, 08:42:51 AM »
If you become very good at where you are working now, usually the employer will pay for the courses to help you advance ( I am thinking warehouse work here, migrating to supervisor and up).

Many good paying jobs in direct operational lines have advancenent potential, although some will require night school.

Not everyone needs a degree.  Many with degrees are stuck at $40k per year. 

Would you prefer an office job or an 'action' job?
What side business would you start if you used that $20 k there instead of a degree or student loan?

Playing with Fire UK

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Re: Hello! Should I be afraid of loans?
« Reply #4 on: November 09, 2015, 08:52:47 AM »
Did you fail the remedial math class because you didn't do the work, because you find math more difficult than other subjects or because you find school difficult in general? There is no point doing a course that you can't pass, and little point starting until you are ready to work hard on it.

You avoid living paycheck to paycheck by not spending it all and saving the difference. It is the same mmm magic whether you get a degree or not. You get a bigger paycheck by working hard at something that you are good at. You don't need a degree to do this. Taking out a loan now without a plan to pay it back is not mmm magic at all.

Vocational courses that have a clear job at the end and a supply of jobs in your area (or the place you want to move to) could be a great balance.

Axecleaver

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Re: Hello! Should I be afraid of loans?
« Reply #5 on: November 09, 2015, 10:22:57 AM »
Quote
But if I could borrow as much money as I needed without having to worry about how I'm going to pay it back even if I don't do well in college because mustachionism is magical like that, then it would almost seem like a nothing to lose situation.

You need a better plan, because you do have to worry about how you're going to pay it back. First, figure out what you want to do for a living. Your post reads like you may not have that figured out, yet. Take some time to decide how you want to earn a living. If the job you want doesn't require college, then don't go! There are many, many jobs that do not require a college education. For trade school suggestions, check out www.mikeroweworks.com.

If you do decide that the job you want requires college, then look into state schools that offer good value for your investment. Avoid for-profit schools and private schools, which tend to be higher cost and lower value. If you take that route, spend your student loan dollars intelligently. Pay for tuition and basic living expenses. Work your way through school and borrow less. Apply for scholarships. Even a small amount is worth the application time - a $200 award that took you an hour to apply is a pretty good return on your time investment.

Once you've graduated, find a well-paying job and keep living like a student until your loans are completely paid off.

Jack

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Re: Hello! Should I be afraid of loans?
« Reply #6 on: November 09, 2015, 11:23:44 AM »
Quote
But if I could borrow as much money as I needed without having to worry about how I'm going to pay it back even if I don't do well in college because mustachionism is magical like that, then it would almost seem like a nothing to lose situation.

You need a better plan, because you do have to worry about how you're going to pay it back.

Exactly. In fact, mustachianism is quite literally the opposite of the statement above: we don't have to worry about money precisely because we did plan, very carefully and judiciously, how to use it to our best advantage. There's nothing even slightly magical about it -- it's about doing the work.

In addition to the skilled trades, as others have already suggested (which are an excellent option), another route you could take would be entrepreneurship (including real-estate).

ShoulderThingThatGoesUp

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Re: Hello! Should I be afraid of loans?
« Reply #7 on: November 09, 2015, 11:31:43 AM »
Why did you fail the math class?

lbmustache

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Re: Hello! Should I be afraid of loans?
« Reply #8 on: November 09, 2015, 11:31:54 AM »
Well, you would probably have to get an AA first and the cost of classes should be relatively low (expensive: books).

Have you looked into financial aid? You may qualify to receive money that you don't have to pay back.

To me, an AA is a minimal investment and from there you can see if you would like to continue without getting massively into debt at a traditional university. It will also allow you to explore various fields and see if there is a career path you'd like to take.

Grades really have nothing to do with the degree ("Cs get degrees"), unless you're doing nursing, medicine, etc. I don't see how grades determine future employment.




lbmustache

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Re: Hello! Should I be afraid of loans?
« Reply #9 on: November 09, 2015, 11:33:27 AM »
Why did you fail the math class?

This is a valid question.

Did you:
Stop showing up to class?
Stop doing the work?
Ask the professor or students or anyone on campus for help?

Or was it:
A crappy professor?
A class where you did not understand the material no matter what?
A combination of things?

Left

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Re: Hello! Should I be afraid of loans?
« Reply #10 on: November 09, 2015, 11:40:24 AM »
Being mustache doesn't mean we get "free" money... if so, where's my pot? I worked hard to get and then keep my money...

Anyways, what are you doing in life now? Can you get employer to pay for it? Or if you are willing, even move to areas with student loan forgiveness?
http://www.thesimpledollar.com/student-loan-forgiveness-move-to-a-place-that-pays-your-loans/

Some jobs forgive student loans too $X/year worked... generally healthcare. Outside of the armed forces, a popular one is IHS. They aren't in urban areas so you do give up "some" earning potential (but weigh it against repayment, it is pretty good) and the pay is on "par" for it anyways. Or public service loan forgiveness, no clue on how to work that system though.

but I get the opposite impression that people are "afraid" of loans here... seems like a lot here "use" debt, just not consumer debt, to their advantage. Mortgage debt for rentals, college loans for higher paying jobs, or just loaning money to people and profiting off "their" debt...
« Last Edit: November 09, 2015, 11:43:08 AM by eyem »

MrsPete

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Re: Hello! Should I be afraid of loans?
« Reply #11 on: November 09, 2015, 03:16:49 PM »
I understand from where you're coming:  I was also afraid of debt in college.  So I didn't borrow.  I worked more than was healthy and wise, and I didn't graduate in four years -- but I never borrowed.  I was never sure that I wouldn't be forced to take a break from college (because of finances), and I wasn't sure about my ability to pay back a loan if I had to take a break ... so I didn't borrow.  I spent every minute of college worried about money. 

If I were suddenly 18 years old again in the same financial situation, I would join the military.  I would live cheaply and save every penny, and then I'd be ready for college four years later.  I never even considered this option when I was 18 because it wasn't something that smart girls did in the 1980s. 

If not military, I would take the same path I took:  Hard work and stress.  It is far superior to dragging out the pain in the form of student loans later. 

Having said that, I'll ask the same question other people are asking:  Why did you fail the math class?  Analyzing this is important because you don't want to repeat the same mistakes. 

And the next important question:  What do you want to study /what do you want to do with that degree?  If you don't have an answer, it's not time for you to go to college. 

arebelspy

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Re: Hello! Should I be afraid of loans?
« Reply #12 on: November 15, 2015, 09:52:24 AM »
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If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.