Ever since I was a teenager my father, Stephen E. Bonvie, spoke these eloquent words, “The power of disciple the rewards of time.” He spoke these words in context of saving money. Of course I was caught in the age old conundrum of having the knowledge and game plan at age 15, but not having the means by which to execute these words. As you get older you tend to possess the income, but have already let valuable years pass you by. It’s a tough paradox. Honestly, most of us struggle just to keep our heads above water, and loans serve as the perfect bridge to get what we want. We are a buy now pay later society. We take out loans for everything these days. We take out loans for automobiles, homes, computers, and education; just to name a few. The key is to take out loans on assets you forecast will appreciate over time - like education.
When you make the decision to go to school you are making an investment in yourself and your future. You yourself become an appreciating asset. Knowledge after all is power and school is certainly a wise investment. Of course you still need to make the right decision when it comes to taking out loans for school (assuming you don’t have the means by which to pay for tuition up front). It is critical that you make intelligent decisions before you enroll in school or you will be looking at a mountain of debt that would make Mt. Everest look like a leisurely Saturday afternoon climb with the kids.
The first thing you should do is complete your Free Application for Federal Student Aid (FAFSA). Once completed you will be sent an awards letter from your school outlining which federal loans and grants you qualify for. It’s usually best to take out federal loans over private as they provide a more generous fixed interest rate and have better borrower benefits. It’s also important to note that Federal loans, such as the Stafford loan, do have yearly and aggregate maximum allotments. In the event you have met your maximum federal allotments and still need additional funds for school I would then recommend private loans.
I hope these student loan tips will help guide you in the right direction. I think we all need a little direction in this fast pace world from time to time. I have been fortunate to have my Dad guide and teach me many of lives lessons; lessons I will be passing on to my son Barrett, and lessons I will be passing on to you the reader in the coming months. Just think of me as your student loan father. I will not steer you wrong. After all, father knows best.
Great topic to address David. It has been my observation that this is something that has fallen out of the curriculum in our public schools. There should be some sort of civics class where kids are taught the basics at least. Like balancing a check book, how to use credit, etc.
November 5th, 2007 | #