Two Different Views – First the Positive Mortgage View

I have owned a mortgage. I have also owned a student loan. There is a big difference. When I got the mortgage, it included the house. When I got the student loan, it only came with a high interest rate.

The house is guaranteed, the job isn’t. There are so many people that have invested time and money into an education, later to deal with the disappointment of no available positions. Or even worse, moving back home which can become a reality.

Many have become rich investing in real estate. The house can be flipped to make a profit, the education cannot.

We all need a good education, I cannot argue with that. But in my case, experience was the best teacher.

Next, The Positive Student Loan View

In today’s fast paced society where many determine their self-worth and judge others by the size of their bank account, the kind of possessions they have and of course, their home (or mortgage), the more and larger the better!

Those that subscribe to that belief must have been the same individuals in college just to get a piece of paper that they thought would give them a huge paycheck. Fast-forward 20 years of so and these are the same individual drowning in credit card debt and wondering what went wrong.

While many fools rush out to get student loans, those who invest in an education will not only gain something far more valuable than a home or car, but will ironically make more in a lifetime than the fools who only see dollar signs.

Now of course many people who take out a mortgage happen to have student loans, so what do those individuals do when comparing which was more valuable as an investment? Student loans are by far a most worthwhile investment when compared to other debts people are willing to incur.

Again, the student loan not only enabled them to gain knowledge, critical thinking skills, and an education but also enabled them to get a career that may very well got them the house they live in.

Then there are those who pursue an academic field that leaves others wide eyed and confused. They are individuals who see value in learning and not a paycheck. Their passion is in their field and may end up giving them more satisfaction than any money or mortgage. Their treasures are not those of the world.

In reality it appears that higher education is filling up with more and more people who only take on an area of study because it provides a job with a higher salary in the end. In actuality, this seems to be true. Yet, there is so much more that goes along with it.

A mortgage is a good financial investment, but without an education not only will a mortgage seem to cost more, but the individual without an education won’t possess many of the things that are truly important.

Material possessions are to be shown and make you and others feel good at times. However, an education is something that will always serve you well and never be lost. Student loans are part of an investment in you, an investment that will always keep paying off for you.

Yes, you can use your student loans for anything you want related to college. Grants have to be used for tuition or for books, but loans can be used for anything. I used mine to pay off credit cards that I had used to pay for school for previous years.

I have been told many times that whatever is left over from a grant and/or a loan after it has been applied to your tuition is yours to spend as your desire. They have no way of knowing what you spend it on.

Student loans are to be used for cost of attendance, which can include off-campus housing and living expenses. However, your financial aid office at your school is the ultimate arbiter of what is legit, although most would agree that off-campus housing is on the up and up.

Now, I have heard of many not so legit things that student loan money gets used for. Sure, they cut you a check for the extra excess money and how can they really know? But be warned, that if they find out that you are doing something illegal with loan funds, you might find yourself with your loans “decertified” and unable to get more.

There are loans that are called “Direct Student Loans” These student loans can be found in almost all kinds of the media. Today there are plenty of these types of direct student loans, for school tuition, off- campus living, even direct student loans to buy your first car. Such is the host of many options that are more than willing to take your money. Remember that choosing one of these types of loans becomes a difficult task and necessary to research and to read and reread all of the fine print.

Student loans can be used for things such as an apartment, (off-campus), transportation needs, food, books, supplies, etc. if it is necessary to complete your education. Remember, your student loans are yours and they are also yours to be repaid. No matter what you choose to use them for they will not go away until they are repaid in full by you. They are loaned to you for your educational needs and can be around for a very long time if you do not use the loan or loans wisely.

Some students are going to school while raising children only on their student loans. However, on the opposite end they can be squandered and bring many regrets and sorrows, along with a lifetime of bad credit.

A friend of mine had taken out three loans for school and made small payments here and there when he could, often times forgetting about them altogether. He then started to receive many letters requesting payment, which he also ignored. Finally, to his surprise his entire check was garnished. He had not been attending college for the past six and had another two years to go before he completed his college education.