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Ask Dave

The teacher was wrong

Allison's daughter was given some inaccurate financial information by a college instructor. When Allison asks how to handle the situation, Dave gives her some practical advice and an amusing story regarding one of his own daughters.

QUESTION: Allison’s daughter is a college freshman. Her daughter got some bad information from an instructor recently, and Allison wants to know how she should explain to her the professor was wrong. The instructor told the class the only way to buy a home without a high credit rating is by having a huge amount of assets or savings. Dave gives his take and recalls an interesting situation from a few years ago.

ANSWER: Well, the first thing you explain to an 18-year-old is that tenured college professors have the right to be absolute morons and keep their jobs. There’s no sense in arguing with them, because many times they’re some of the most arrogant human beings on the planet.

A few years ago my daughter took a personal finance class in college, and on the first day the instructor went on a rant saying Dave Ramsey is stupid. She went through the entire class and never said a word. When she called home and asked what she should do, I said take the tests and answer the questions the way he wants them answered. You’re just taking a class — that doesn’t mean you have to form your opinions around it.

Anyway, what I would do here is just explain to her the college professor doesn’t know what he or she is talking about. You can get a home loan with no credit score. People do it all the time. You can call Churchill Mortgage if you want and have one of them give you an example of it. All you need is a reasonable down payment, have two years at the same job, and provide two years of tax returns.