I don’t see how young people can avoid making bad credit decisions. It seems everywhere my brother, who is 18 and starting university next week, turns there are companies offering him credit. He has received no fewer than ten different communications, mostly e-mail, from his school’s financial aid office imploring him to sign a master promissory note. He was all ready to sign it until I told him he doesn’t need to. He’s not getting student loans.
He tried to decline the student loan offers via the school’s self-service Web site, but every time he cleared the check marks and clicked submit, the check marks re-appeared next to the student loans. He telephoned and e-mailed his financial aid office and told them he wished to decline the loans. Yesterday he received an onimously worded letter in the mail from his financial aid office warning him that his tuition may not be covered if he doesn’t sign his master promissory note.
Uh, excuse me, for whom do these people work? It’s obviously not the student.
We stopped at Chase yesterday so Eric could deposit the refund check he received from the bursar. Before we could approach the teller, a lady at a desk (who wasn’t much older than Eric) summoned him over. She told him she would gladly take care of him. And, boy, did she. First, she completed the deposit slip for him. All he had to do was sign his name. Hmm, I’m starting to see a pattern here.
In the process of depositing his check, she tried to sell him three products: a) student loans (!), b) savings account, c) auto loan. While he could use a savings account, I doubt that she had his best interests at heart.
It’s little wonder we’re a nation of debtors.