How a cali student spent his financial aid

kalimuscle

How a cali student spent his financial aid


http://www.dailymail.co.uk/femail/article-3534301/Who-needs-textbooks-Romantic-college-student-spends-financial-aid-surprise-couples-trip-Thailand-girlfriend-never-left-country.html


Wow what do you all think?

Blucodex

Happens all the time. I've seen it used on a down payment for a home purchase.

NetworkNewb

Yea, the "financial aid" could've just been a loan that he has to pay back anyways. The fact they don't actually say anything more about it I'm going to assume it was just a loan. And was only $2500. No real story here.

Not to mention it said they stayed in over-water bungalows and this trip would've cost wayyyy more than $2500. I'm sure he probably has more than enough money to buy his books.

kalimuscle

He is smart in a way

Youtube pays people for their video views

His video has almost 1 million views

Generally its 1000 dollars per 1 million views

That means he made close to a thousand dollars just from that video as it has 820000 and its growing !


Soon his video should be able to pay off his loan !

DatabaseHead

kalimuscle wrote: »

He is smart in a way

Youtube pays people for their video views

His video has almost 1 million views

Generally its 1000 dollars per 1 million views

That means he made close to a thousand dollars just from that video as it has 820000 and its growing !


Soon his video should be able to pay off his loan !

Brilliant

NetworkNewb

Definitely! lol

joelsfood

DatabaseHead wrote: »

Brilliant

Maybe, though I'd be a bit interested what happens after he gets out of school and tries to apply for any job that requires some level of trust or financial responsibility.

Slowhand

Some people are sticklers for the "this money is explicitly slated for school expenses only" stipulation in the Financial Aid fine print, others look at it as any other loan. The way I see it is this: If you take out that money, you're either in school taking classes or you've been accepted and enrolled at a school to start taking classes. If you choose to throw the money away on something like a vacation, spend it on an emergency, or otherwise use it for non-education-related things, then that's your choice. . . and you also live with the consequence that you might not get through school otherwise. It's a risk you take, even if you were to invest that money and make it back ten-fold and pay for your semester or college all on your own, it's still a risk.

If you're willing to live with that risk, and know that you're only getting so much money for school, then do what you want with the cash once it's in your hot little hand; college isn't just meant to teach you facts and make you memorize knowledge, it's also intended to help you grow as a person, teach you how to live on your own and be an adult. Spend wisely.

kalimuscle

Slowhand wrote: »

Some people are sticklers for the "this money is explicitly slated for school expenses only" stipulation in the Financial Aid fine print, others look at it as any other loan. The way I see it is this: If you take out that money, you're either in school taking classes or you've been accepted and enrolled at a school to start taking classes. If you choose to throw the money away on something like a vacation, spend it on an emergency, or otherwise use it for non-education-related things, then that's your choice. . . and you also live with the consequence that you might not get through school otherwise. It's a risk you take, even if you were to invest that money and make it back ten-fold and pay for your semester or college all on your own, it's still a risk.

If you're willing to live with that risk, and know that you're only getting so much money for school, then do what you want with the cash once it's in your hot little hand; college isn't just meant to teach you facts and make you memorize knowledge, it's also intended to help you grow as a person, teach you how to live on your own and be an adult. Spend wisely.

You dont have to go to college to grow as a person


Just challenge yourself each and everyday

Over 4 years you would be surprised with the results

jamesleecoleman

Shoot, I used the refunds to go and study in Russia.... twice.
It was really really worth it too. I should have did a full year in Russia but I'll do that later.

Slowhand

kalimuscle wrote: »

You dont have to go to college to grow as a person


Just challenge yourself each and everyday

Over 4 years you would be surprised with the results

Funny thing about that, I never said you had to. The larger point of my post was about choice.

thomas_

Three weeks after the trip:

Her: Thanks for the trip to Thailand, but things just aren't working out...bye. Oh by the way, I've been screwing around with your best bud...

Iristheangel

When I was going to WGU, I had tuition reimbursement from work and also using federal school loans. The federal school loans went right to tuition but when I would get my tuition reimbursement from work, I *gasp* didn't always spend it on paying back the loans. I actually paid off the world's crappiest car loan which was at 29.99% at the time (that finance company was all but missing knee breakers) and I used a bit more to pay for my CISSP bootcamp and travel for it. Way I saw it, I got to clear an high interest loan that I didn't qualify for refinancing for and I bettered myself by getting my CISSP out of the deal.

*shrug* I still had to pay back the school loan out of my own pocket but 6% was still better than 29.99% or any interest rate I qualified for at the time. I was stuck at a ~500 credit score years ago so it helped.

dave330i

So why should student loans be forgiven?

jamesleecoleman

dave330i wrote: »

So why should student loans be forgiven?

I don't think they should except for certain situations. But we have people taking student loans, getting degree's and then running away to a different country. Really.... a different country???? People ducking and dodging like they're paying child support...
It would be awesome if the interest was way lower though but I don't see that happening though. People just need to know how hard it can be after they graduate and not be able to have a job that pays enough and expect to have a job right out of school that doesn't pay enough. Even look at picking up a second part time job just to help provide financial stability. It's hard out out here for some and harder out here for others, wish they would show us that in high school and/or in college for the people that don't know.

Iristheangel

dave330i wrote: »

So why should student loans be forgiven?

I don't think they should always be forgiven. IMHO I think there's an argument to be made about public vs private universities in terms of debt forgiveness. Overall though, I think this general list is a pretty good blueprint on some good reasons why certain situations should have some judgement applied: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation#unpaid-refund

I think if someone goes to a private institution or for-profit school, there's probably a bit more skepticism that should be put on any sort of debt forgiveness because generally speaking, public communities colleges and universities are more directly funded by taxes and therefore in some way, shape, or form, even if there is some sort of debt forgiveness, that student is still continuing to put some money back into that university system by way of their taxes. I don't mention this to start a political debate. I don't want to snowball this into a conversation about whether or not there should be public universities, whether the government should give out school loans, or question the whole existence of colleges. I simply want to make the point that as the system stands now, private universities rely on tuition, endowments and donations to stay open and public universities rely on state taxes paid by the residents of the state. Private universities typically have higher tuition rates vs state and community colleges for this reason. For a mathematical standpoint as the system stands now, forgiveness on a private university's loans tends to cost more for the average tax payer than granting forgiveness on a loan to the public school.

paul78

Iristheangel wrote: »

world's crappiest car loan which was at 29.99% at the time

Geesh - did you get that loan in a back alley? That's more than the max usury rate in any state afaik.

Iristheangel

@Paul - Crappy financial issues years ago. My credit score was ~550 and it was a used car I didn't really have a lot of choices and I had to get to work somehow. Kinda sucked to be paying $550/month on like a 7-8K loan. They also told me I couldn't take a longer loan. If I recall, it was something like 3 years max for a used Hyundai Accent. Opposite of fun.

mbarrett

This is the kind of stuff that really grinds the gears of those working class Trump voters, working their asses off to pay the bills. They see the pure flagrant abuse of the social system designed to give some young person a way to avoid the struggle - instead they piss it away on a trip out of the country. So they don't care when some politician gets in there and basically slashes all the nice programs that are actually helping a lot of young people get past the real struggle in their lives so they can focus on what really matters in their lives.
If you're going to take the money, you owe it to society to use it in the way it was intended for. It's there for a reason. If you want to take a trip to Thailand, there are plenty of other ways to pay for it. Save for it or just put it on a credit card. If you can't save for it or you can't handle the credit payments, try winning the lottery - or don't go in the first place.

kalimuscle

mbarrett wrote: »

This is the kind of stuff that really grinds the gears of those working class Trump voters, working their asses off to pay the bills. They see the pure flagrant abuse of the social system designed to give some young person a way to avoid the struggle - instead they piss it away on a trip out of the country. So they don't care when some politician gets in there and basically slashes all the nice programs that are actually helping a lot of young people get past the real struggle in their lives so they can focus on what really matters in their lives.
If you're going to take the money, you owe it to society to use it in the way it was intended for. It's there for a reason. If you want to take a trip to Thailand, there are plenty of other ways to pay for it. Save for it or just put it on a credit card. If you can't save for it or you can't handle the credit payments, try winning the lottery - or don't go in the first place.

The dude in the video looks like a stoner.

I hope his gf is loyal

Lol

mbarrett

On the other hand, if you give that much money to a college kid with few strings attached, what do you think will happen?

Slowhand wrote: »

If you're willing to live with that risk, and know that you're only getting so much money for school, then do what you want with the cash once it's in your hot little hand; college isn't just meant to teach you facts and make you memorize knowledge, it's also intended to help you grow as a person, teach you how to live on your own and be an adult. Spend wisely.

Exactly - the only problem is, some kids are immature about money matters. Just because you got into college doesn't exempt you from being stupid.

JockVSJock

Iristheangel wrote: »

the world's crappiest car loan which was at 29.99% at the time .

Dear Lord...say it ain't so. Reckless with credit cards? I would have walked, rode the bus, hitched hiked or lived under my desk at work to prevent becoming a debt slave.

I knew a guy in undergrad who used his student load to open a music club. At the time, seemed like a good idea, however knowing what I know now, the whole the college industrial complex is corrupt, and there is no reforming it.

paul78

Iristheangel wrote: »

@Paul - Crappy financial issues years ago. My credit score was ~550 and it was a used car I didn't really have a lot of choices and I had to get to work somehow. Kinda sucked to be paying $550/month on like a 7-8K loan. They also told me I couldn't take a longer loan. If I recall, it was something like 3 years max for a used Hyundai Accent. Opposite of fun.

I realize it's offtopic - but I've reading up on the usury laws in some states. It's really kinda pathetic that there are so many loopholes. In California, the usury limit is supposed to be 10% but with certain loans and depending on the lender - usury laws appear to be entirely toothless.

Iristheangel

JockVSJock wrote: »

Dear Lord...say it ain't so. Reckless with credit cards? I would have walked, rode the bus, hitched hiked or lived under my desk at work to prevent becoming a debt slave.

I knew a guy in undergrad who used his student load to open a music club. At the time, seemed like a good idea, however knowing what I know now, the whole the college industrial complex is corrupt, and there is no reforming it.

No. I was not reckless with credit cards. Couldn't not have a car either or else I would have had to commute 3 hours each way to work with buses instead of having a 30 minute direct drive. I also would not have been able to have a second job which gave me time to study (couldnt deal with the car sickness if I tried to study on public transportation) and money for certs.

As far as getting a crappy loan to get ahead and becoming a "debt slave," well... Short term sacrifice so you can succeed long term. You got to do what's right for you. It turned out well in my case and i made some lemonade


Edit: Looks on the Metro Trip Planner at various addresses for old apartments to old jobs from those years. This is what it would have looking like to commute:

Here's from the general area of my apartment to my first IT job to get there by 8AM in the morning:

So as long as I'm awake, showered, made up and at the bus stop by 4:53AM, I'd be arriving at work by 8AM on the dot every day (unless a bus was late or I missed a connection)

Here's what another IT job would have looked like around that time:


Same thing: As long as I was in front of the bus stop by 4:45AM every day and nothing at all goes wrong, I would have the pleasure of being late to work every day by only 5 minutes.

I guess moving closer was also an option but the housing prices skyrocket the closer you get which is harder for someone just trying to get by.

Another little personal tidbit: I didn't drive until I was 22 years old. There were plenty of times where I had to do the above monster commute and where you're sitting at a bus stop at 4:30AM or 5AM, the bus drivers don't always see you and just keep driving by or you run the risk of having to switch buses in some very very very scary areas for a 110 pound woman to be stopping in. For anyone who lives in the Los Angeles area, if you want to see "fun," try taking the blue line from Pasadena to Long Beach around 11PM at night. The Compton stops are particularly "fun" at those times.

chrisone

starting to sound like cnn vs foxnews up in here hahahaha

Iristheangel

chrisone wrote: »

starting to sound like cnn vs foxnews up in here hahahaha

Ewww. I don't think I want to be compared to either of those.

This whole thread is a reaction to how someone else spends their loans. Honestly, I don't care much what this kid did with his student loan money. He has to pay it back eventually.

Re: my situation, I took school loans and they went directly to school. I got tuition reimbursement from work and instead of paying off school loans, I paid off higher interest rate loans because it was the smarter thing to do in the long run. *shrug* If someone would have done something different in my shoes, good for them.

kalimuscle

Iristheangel wrote: »

No. I was not reckless with credit cards. Couldn't not have a car either or else I would have had to commute 3 hours each way to work with buses instead of having a 30 minute direct drive. I also would not have been able to have a second job which gave me time to study (couldnt deal with the car sickness if I tried to study on public transportation) and money for certs.

As far as getting a crappy loan to get ahead and becoming a "debt slave," well... Short term sacrifice so you can succeed long term. You got to do what's right for you. It turned out well in my case and i made some lemonade

Nice work Iris !

Looks like your hard work and the hustle paid off

Much respect

kalimuscle

Isnt higher education a business?

Iristheangel

heh. To some degree it is, kali. If it's a public institution, it *shouldn't* be but some people suck

aspiringsoul

dave330i wrote: »

So why should student loans be forgiven?

How about if your school is sued for Predatory Lending and the CEO and CFO have fraud charges filed against them?

https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-for-profit-college-chain-itt-for-predatory-lending/

ITT Tech Students Should Take Their Money And Run, Experts Say - NBC News

https://www.sec.gov/news/pressrelease/2015-86.html

Of course, ITT wasn't the only one...Corinthian Colleges faced a lawsuit for Predatory lending.

https://www.consumerfinance.gov/about-us/newsroom/cfpb-wins-default-judgment-against-corinthian-colleges-for-engaging-in-a-predatory-lending-scheme/

let's not forget EDMC:

https://www.justice.gov/opa/pr/profit-college-company-pay-955-million-settle-claims-illegal-recruiting-consumer-fraud-and

There are actually too many lawsuits for me even bother including in this post. If you really want to take a look at the hundreds of lawsuits pertaining to the abuse of taxpayer money, look no further than here.

https://www.republicreport.org/2014/law-enforcement-for-profit-colleges/

David Halperin wrote a book called Stealing America's Future: How For-Profit Colleges Scam Taxpayers and Ruin Students Lives (Free E-book, short read):

https://www.republicreport.org/wp-content/uploads/2016/01/D-Halperin-Stealing-Americas-Future-ebook.pdf

I hear people complain all the time about the extravagant Salaries of College Presidents. They're no where near as High as the Salaries of For-Profit College CEOs:

Take for example Strayer University's CEO, who received a 41 million payout:

Strayer Education CEO made $41.9 million last year Industries | Virginia Business

The five highest paid CEOs of for-profit higher education companies received an average of $7.3 million in compensation in 2009.


$2,500 is chump change...especially if we're talking about taxpayer $

On average, 86% of all funding at for-profit colleges are from federal tax-payer dollars. 25% of all Department of Education student aid funds, totaling $32 billion Education department grants and loans in 2009-10

Fact Sheet | For Profit U

soletek

When I went to orientation it was made clear its my money to do whatever I wish to do with it. Use it for school, additional classes or whatever but it must be paid back.