Source for Online RA Credit?(Outlier.org)

[dfrecore]

dfrecore:

We have some differences of opinions about debt.  I do have a question, though.  Do you invest at all?  My wife and I invest in stock market index funds.  We don't want to pick any individual stocks because of the risk involved.  I find it very interesting that there are people who will avoid debt like the plague and then invest in the stock market.  To me, it seems very strange to avoid debt with such low interest rates in the current situation, but also invest in anything other than government-secured bonds.

I also find it strange that anyone would avoid debt, but own a home at all.  As you said, housing markets crash.  A much more secure position would be to simply rent.  Buying a house with cash is only slightly less risky than buying with a couple of percent mortgage.

I actually don't think that there is much risk in a young, single and healthy person taking on $10,000 or $20,000 in student loan debt as long as it is in a practical and employable field.  Teaching and nursing are two good examples.  People will be able to pay that money back in reasonably quick fashion.  Just rent an apartment, tape up all the windows to avoid heat loss and work as many hours as possible at work.

I do invest in the stock market - because if you diversify, you are fairly safe.  I have never lost money in the stock market because I have never cashed out (especially when it was low).  If I was to cash out, it would be when it was up.

I do not own a house now, but that's because we're building one.  We will put down a substantial amount, and pay it off as quickly as possible.  That being said, if I hadn't already put money down on it, I would find a nice house to rent and stay in place for a while.  We sold a house in '06 at the height and rented for 6 years, and then bought a short sale in 2012.  While I do agree that it would be nice to pay cash for a house, it's not always feasible, and renting (and having to move multiple times because landlords do sell houses) is not always a great (or cheap) option.  So we do risk buying houses.

But I still won't take out a student loan and would never advise it - simply because it's just too great a risk for my taste.  You start taking on risk immediately, but you don't actually get the degree for a long time after that (assuming you start with debt your first freshman semester and continue on for 4 years minimum).  There is just no guarantee you will get your degree during that time (and with a 60% dropout rate, it's safe to say that most won't).  At least when you buy a house, you get the asset immediately.  Not so when you finance a degree.  And, when you buy a house you can afford, then conceivably you will be able to continue to afford it over the life of the loan.  Again, when you start to finance your degree, there is not always a good outlook for the job market when you get out.  And let's not forget, most people aren't getting nursing or teaching degrees (and I've been around long enough to remember when teaching was over-supplied and it was next to impossible to get a job there after graduating).  Let's also not forget that just because you get a degree in something, does not mean that you will actually like doing it.  I know former teachers and nurses who hated every minute of their jobs.