Thursday, October 3, 2013

College Loans Are Not For Children!


I am not the only one with things to say.  

Suze Orman has many things to say. 

I often agree with her. I recommend her books and show to anyone interested in personal finance.  But occasionally, we don't see eye to eye.  That is ok, as we each have functioning brains and the right to form our own opinions.  She has a head start on her personal fortune, but check back in 20 years, and I should be well on my way.    

The following news article in which Suze Orman discusses student loan debt made me a bit nutty:

I started watching The Suze Orman Show a few years ago, and generally like it, although I do occasionally whine that she beat me to it.  Much of her strategy for financial security has been in my head for years.  But she wrote the books and got the shows, so she earned the fame and fortune.  My turn will come.  ;-)

The biggest problem I have with the current student loan debate is the fact that we are extending childhood well past the teen years. Yes, Suze Orman refers to college students as children. (Is she kidding me?)  She does not seem to hold students accountable for their actions.  It seems strange, coming from her.     

College is a product/commodity.  If you want it, you buy it.  If you borrow to pay for it, you pay interest and you PAY IT BACK.  Just like a house or car.  If you become financially destitute, there should be ways to get some leniency, so you don't pay the loan instead of pay for food and medicine, but really, why shouldn't federal student loans have interest?  

Why is college a product we feel entitled to?  Should we just convert high school into a longer term institution?  As it stands, high school is often undermined by the need for college.  It no longer seems to have value of its own.  Many college students feel that their Bachelor's degree is just a passport to a Master's program.  When are they supposed to be considered adults and competent to live life independently?  Or at least, responsibly?

Really, high schoolers preparing for college should be mortified when they are credited with the financial abilities of fleas.  They are CHILDREN??  What self respecting 18 year old wants to be considered a child? (Do we expect them to have self respect?)  High schools and elementary schools are failing miserably if students cannot graduate without understanding that if you want something, you need to know what it costs, and decide Can You Afford It?  The elementary math curriculum nationwide introduces addition and subtraction.  If you cannot balance a checkbook and don't know that loans are money borrowed from someone else, you have no business applying to college.  You don't really belong in high school.  

There are scholarships, grants, loans, and savings programs.  The economy stinks right now, and college costs (especially on campus living) are high, but if you want it, you work for it.  How did Suze Orman feel about her education?  She is a self proclaimed late bloomer in her profession, but she has always worked.  And is hopefully free of student loan debt.  Is she really the lone superhero of college students, able to crush her student loans with a single pound?    

I take many of Suze Orman's strategies to heart, and have since before I knew of her.  Lots of common sense, but she does add technical skills to finance that I didn't have at my fingertips (although I disagree with "laddering" CDs-- but read the fine print, crunch the numbers, and come to your own conclusion).  I finished my BA in 1993 with no debt.  I finished my MBA last year with no debt.  My son just got his Associates with no debt.  My second son just started college and knows I won't co-sign loans.  He, like his elder brother, will use a scholarship and grant and hopefully get a job or two. I fully fund my Roth as a Christmas gift to myself every year.  

Has Suze Orman considered that the push for college now may be a strategy to decrease job demand?  There's a conspiracy theory for you!  Occupy a potential workforce and allow more Boomers to retire (if possible) and clear the way!   

At least Suze isn't telling us that student loan debt is "good" debt!  

(Don't get me started. . . )