Wednesday, August 31, 2005

Back to School

While the seminary in which I work does not start its Fall Quarter until the end of September, many schools are starting already. For those of you starting classes, let me take a quick moment to say something about finances. I know money's tight. Especially for students. And I likewise understand not wanting to take out a lot of loan money to finance your education. However, I see way too many students that rack up tons of credit card debt just for normal expenses like eating and rent. (I know, I did this very thing. My wife used to work in Financial Aid, and I learned the error of my ways.) PLEASE take out enough money in Stafford and similar education loans to handle these basic expenses! Stafford loans are at a pretty low interest rate (currently 4.70%), compared to credit card rates, which are seldom lower than 10%, and are generally more like 15%. If you take out $5000 (for example) this year in a Stafford loan, you will have SAVED yourself about $500 over one year alone compared to the cost of credit card interest rates! And over time, that adds up even further. Obviously, you can't use Stafford loan money to pay for non-education expenses, like a new Transformer for your collection. But with some wisdom, you can still buy the Transformer using money from your job (assuming you have one), and use the loan money to pay your rent (a totally legitimate expense, especially if you're living in a particular area specifically to go to school there).

Anyway, unsolicited advice over. I'm sure I'll have something more pertinent to talk about later, like maybe some appropriate reflection on the hurricane damage that's happening in the Southeast. For now, I'm pretty tongue-tied on that one. Needless to say, prayers are a good thing....

1 comment:

  1. What, you've actually learned something about finances over the years? I'm shocked! ;)

    ReplyDelete

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