When you apply you have to be prepared for two things - being denied or prepared to pay it back.
School loan debt - it's a huge controversy. I understand that many young people are drowning in paying back what they felt was an investment in their own future and I hate to see people struggle doing what they believed was right. I wonder if they were misguided from the beginning by being told they had to go to college or by believing they had to go to a school they couldn't afford when there are less expensive schools to attend that will yield you the same degree - albeit, possibly not the same advantages. But, knowing what you're going to pay in the end, having done the research and the due diligence accounting, who is really to blame for the financial burden? I've wanted things my entire life and I've even sacrificed to get some of them - buying a Rolex when I graduated from college was dumb but I worked for the jewelry store I bought it from and he let me pay it out on lay-a-way for over a year with no interest. Still, sorta dumb but I still wear it with pride.
I went to a local college, Southern Arkansas University in Magnolia, AR, and received a BBA in marketing. I worked four jobs during college and also took out student loans for my sophomore through senior years. The cost per semester was around $3,000. My grandmother died when I was 15 and she left me enough money for me to go to school for the four years it took me to earn my degree but after my freshman year, my family's accountant suggested to take out student loans so the withdrawal every semester wouldn't count as income and then draft the sum from that one account to the lending institution when my degree was completed. So, I followed this advice. After graduation I talked with my mother and asked her to take care of the details of the transactions necessary and she said she'd take care of it. I felt pretty lucky to have been blessed with the ability to basically go to school for free.
About two years after I graduated, I was living in Dallas by then, and I'd been promoted to an area sales manager position at Dillard's. Going from $12 per hour to $33,000 per year was a HUGE jump. I was already making more money than most of the people in my family retired making. I thought I had arrived. On a trip back home to south Arkansas I decided I was going to trade the new Silverado I got (though the situation of my grandmother passing away) when I was 16 in on a new Chevy truck at the local dealership. Trying to stay "local" I walked in with my downpayment and the title to my 6 year old truck (that still looked brand new) and forged ahead on the first big purchase of my life. They took my personal information, we talked about my family and my new life in Dallas, then the finance guy came back with my credit report and he and the salesman both looked at me like I was trying to pull a fast one. My credit report showed that I was a year delinquent on payments on my student loans and my credit score was somewhere below 500. I was in shock. I was also so embarrassed that I wanted to crawl under the desk and disappear. I'd never missed a payment on anything in my life. There was a phone number on the credit report for the bank I'd borrowed the money from and I called them and they reported "your loan payments were to start over a year ago and there were two payments made but the rest is delinquent". They'd sent the statements to my mother's address all this time because that was my permanent address until I moved to Dallas. Defeated, I drove back to my mother's house and sat down in the living room with her and tried to calmly understand what happened. When I started out with "I was denied a loan for the new truck" she replied "I was afraid of that".
As it turned out, the money I'd been left to pay for school, my mother spent. I don't know on what and she wouldn't be able to tell anyone either because I now know how horrible she was with personal finances. She made two payments on the student loan and just stopped paying it but didn't tell me about it because if she were to then I would have found out that the money I thought was there to cover my expenses was actually spent by her so if we never talked about it - in her mind - it never happened. This was around 3pm on a Saturday and I was so angry and hurt and betrayed that I just got my overnight bag and got in my truck and headed back to Dallas. I cried some on the way home and also thought of how I was going to fix this. The next week I called the bank fixed the mailing address and made a verbal promise that as soon as the payment slips came in I'd pay the delinquent amount and start making the payments. This took all of my downpayment money and they explained to me that this would not fix my credit for years to come. It was actually another five years before I was able to finance a vehicle on my own. Of course it never dawned on me to ask someone to co-sign for me but I think we can see that would have been a another disaster in itself.
I think the biggest disappointment, other than the fact that my mother blatantly stole thousands of dollars from me, was that I hand't made it my priority to take care of my own affairs. I learned a tremendous lesson. Not to say I've never lived over my means in all this time but I haven't let things go so far that I couldn't reel it all back into place.
So, to all the people potentially wanting to commit themselves to a life of "living on time", come talk to me. I've run the gamut - but, I'm still here!