Bad Economic Advice

Wednesday, Dec 19 in Student loan | Comments (3)

Question: Brett is a college senior who just got a $2,300 refund on his $7,000 loan from his university. His economics teacher told him to invest it and let it grow. Does Dave agree? Dave absolutely does not.

Dave Ramsey's advice: That's stupid advice. Unless you leave the invested money alone at least five years, then you shouldn't put the money in the stock market. It's too volatile for a five-year period. Apply this money directly to the student loan now. Send it back to the student loan people and tell them to apply it to the principal balance.

Hear Dave tell it like it is

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Could you tell me what kind of Student Loan gives you a refund?

# Posted by Michelle | 1/18/08 7:59 AM

1) Probably borrowed more than necessary and got some of it back after tuition was paid.

2) Could have received a last-minute scholarship that reduced the amount needed, so the money wasn't tied up with school expenses.

# Posted by Ben E. | 3/20/08 2:26 PM

I get the GA Hope Scholarship which pays for all my tuition and $150 in books. I also get Financial Aid up to a certain amount every semester. I always get back a refund becuase my tuition never exceeds the amount that I qualify for - I use that money to live on!

# Posted by Brandi | 4/5/08 7:51 PM

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