Forum Archive Index - September 2000

[Daniel Rollo <danner@ihug.co.nz>]

Reading these views on student loans on the forum and would like to express
my views.

I am 21 years old and started study when I was 18. I did two years of a teaching degree and dropped out. In that time I clocked up a student loan of $15,000. I was young and like most of us with student loans studying did not worry about the debt I was getting myself into, just about the good times I was having with the money. My friends had the same feeling one of them brought a 29" TV, video, stereo and play station on his first payment ($3000!!). But the thing I find about the student loans is that they encourage a lot of people not to work, as you receive $300 a fortnight, and on receiving $300 per fortnight and paying for course fees (3-4000 dollars), your loan can look like a nightmare at the end of your degree.

Why did I drop out of my degree with only one year to go, do you say. Well I got sick of it, teaching was not something I wanted to do and coming to the end of my second year my thoughts about money changed and I just wanted to earn it. So I got offered a job at an electronics firm paying $30,000 a year, went flatting and decided to invest in the share market, which I have been doing so since the start of this year. I find it interesting I have had losses and gains, but the most important thing of all is Im learning, a lot, not just through talking to my broker but through these forums and the many opinions of the people on it. But one thing i've noticed through reading the many posts is that most of you, at a guess are 30-50 years old. There is nothing wrong with that at all but how many young people out there investing their money!!

Here's my view about investing.

Important point: Since leaving study for the first time I have just realized what a lot of young people studying do not.

With a four year degree the average person clocks up a student loan of about $20,000, four years of working would earn you on average about 80-$100,000.

$20,000+$100,000=$120,000

That is how much it costs you now days to get a qualification. That is a house mortgage free, and a good amount of money to do some real quality investing to set you up for the rest of your life.

To many young people today get degrees which are no use to them and clock up massive student loans which puts them years behind in gaining a quality lifestyle.

I would like to here your views!