Benefits of taking loans

[pinkhottie]

Hi, everyone.
Im not bragging anything but I have a question..

What is benefits of taking loans??
My parents will take care of my tuition and living expenses but I wonder if it will help my credit when I open my own practice?
I am a permanent resident. My parents are in my native country.
I have credit cards under my name and paying off my car and will buy a house soon.
but I am not sure if that will be enough for a new practice..

So, would it be better to take loans in my situation?

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[Cold Front]

Talk to your parents about lending you money, and try to get better rates than lenders/banks. This route; no credit check, no stupid fees, and if you default and business fails - it won't effect your credit, and parents still love you.

 

[Shunwei]

Talk to your parents about lending you money, and try to get better rates than lenders/banks. This route; no credit check, no stupid fees, and if you default and business fails - it won't effect your credit, and parents still love you.

You got a point, but I am of the belief that people have to grow up and learn how real life works and be able to make it on their own. Yes loans suck, but if you go to a cheap school it can still be managed. Years from how you'd want to stand tall and say that you built your own career and business with your own two hands and didn't owe anyone.

 

[Glimmer1991]

Talk to your parents about lending you money, and try to get better rates than lenders/banks. This route; no credit check, no stupid fees, and if you default and business fails - it won't effect your credit, and parents still love you.

I don't think the OP is considering paying for school instead of her parents doing so.

Instead, I think she's asking if it can improve her credit by taking out loans for dental school (likely smallish ones that her parents will pay off, from what I'm understanding).

Having longstanding credit with a "mixture" of accounts is a good thing. However, if you already make responsible CC payments and have a car loan (and will soon take out a mortgage), I don't think the student loans are going to make much of a difference to your credit score. You already have a good mix. I don't think lenders are going to look at your history and say, "Oh look! Her student loans are paid off. Let's lend her more money." I think the regular payments on the CC/car/mortgage will be good enough proof. However, they'll also look at your income. Even if your student loans are paid off, if they look and see you don't make *that* much money, they aren't going to lend you as much... At least that's how I understand it.

Somebody please correct me if I'm wrong. 😀

 

[oralcare123]

There is nothing shameful in letting your parents pay for your education. In some cultures it is a norm. I will pay for my child education with no strings attached

 

[Doctorman45342]

I don't think the OP is considering paying for school instead of her parents doing so.

Instead, I think she's asking if it can improve her credit by taking out loans for dental school (likely smallish ones that her parents will pay off, from what I'm understanding).

Having longstanding credit with a "mixture" of accounts is a good thing. However, if you already make responsible CC payments and have a car loan (and will soon take out a mortgage), I don't think the student loans are going to make much of a difference to your credit score. You already have a good mix. I don't think lenders are going to look at your history and say, "Oh look! Her student loans are paid off. Let's lend her more money." I think the regular payments on the CC/car/mortgage will be good enough proof. However, they'll also look at your income. Even if your student loans are paid off, if they look and see you don't make *that* much money, they aren't going to lend you as much... At least that's how I understand it.

Somebody please correct me if I'm wrong. 😀

They won't be saying this but they will be looking at her credit score in order to see if they should loan to her or not. If she takes out loan and pays it off on time her credit score will go up thus increasing her chances at getting the loan she wants.

 

[Glimmer1991]

They won't be saying this but they will be looking at her credit score in order to see if they should loan to her or not. If she takes out loan and pays it off on time her credit score will go up thus increasing her chances at getting the loan she wants.

But she already has a car loan, a CC, and will soon have a mortgage. She makes regular payments on those. Do you really think the student loans will make a difference?

I don't think that lenders make it a secret that they look at credit scores when they decide how much to dish out. 🙂 I'm just saying that I don't think the student loans will have much impact, since she already has a good mixture of credit.

 

[Doctorman45342]

But she already has a car loan, a CC, and will soon have a mortgage. She makes regular payments on those. Do you really think the student loans will make a difference?

I don't think that lenders make it a secret that they look at credit scores when they decide how much to dish out. 🙂 I'm just saying that I don't think the student loans will have much impact, since she already has a good mixture of credit.

Showing that you can pay a 250k+ loan back on time would do wonders for a credit score more so than a car payment and whatever else would. Think about it, 250k loan vs 30k car. Just saying 🙂

 

[Ferneezy]

Showing that you can pay a 250k+ loan back on time would do wonders for a credit score more so than a car payment and whatever else would. Think about it, 250k loan vs 30k car. Just saying 🙂

not really. the main factor is being able to meet your responsibilities in a timely manner. OP (and anyone else) has plenty of chances to do that regardless of the amount of money borrowed and the purpose toward which it serves.

 

[DrJeff]

If you don't have to, then DON'T!!

End of story!

 

[Doctorman45342]

If you don't have to, then DON'T!!

End of story!

Not the end of the story...
Building your credit is key in our modern economy.

 

[Glimmer1991]

Not the end of the story...
Building your credit is key in our modern economy.

But we have explained that she already is building her credit!

LOL, okay. We're just going to have to agree to disagree. 🙂 I sure as heck wouldn't be taking out any loans if my parents were offering to pay, regardless of whether or not they would be the ones actually paying those loans. I just have no need for that. I have a good credit score from my CCs alone, as I suspect the OP has. She has a car payment and a soon-to-be mortgage to throw into the mix, too.

 

[oralcare123]

There are less painful ways to do that

 

[Doctorman45342]

How is this going to hurt at all? She takes out the loan, pays it back on time with her parents help and she builds credit. Win win

Also, having an extra 100-200k laying around isn't so bad

 

[Glimmer1991]

How is this going to hurt at all? She takes out the loan, pays it back on time with her parents help and she builds credit. Win win

It hurts because her parents would pay unnecessary interest and origination fees. It's also just sort of a hassle.

 

[Shunwei]

There is nothing shameful in letting your parents pay for your education. In some cultures it is a norm. I will pay for my child education with no strings attached

This is america, where the self made folks are more respected. It also doesn't make me feel any better if I take away money from my parents retirement if they are not wealthy folks. It does teach someone a lot about money when you have them realize how hard it is to earn it and how difficult it is to pay back loans.

 

[oralcare123]

Life is hard enough without creating extra hardships. If parents are paying - this is their decision. Some buy their children cars and houses, some just give birth. It is still America, so people are free to choose. No need to shame them for it

 

[Shunwei]

Life is hard enough without creating extra hardships. If parents are paying - this is their decision. Some buy their children cars and houses, some just give birth. It is still America, so people are free to choose. No need to shame them for it

That's your viewpoint, but I would certainly respect someone more for building their career on their own. People who are given things tend to be the spoiled and immature ones. I wouldn't give my kids a free ed, that's for sure. Time to wean off the milk and learn to walk on your own.

 

[amali]

That's your viewpoint, but I would certainly respect someone more for building their career on their own. People who are given things tend to be the spoiled and immature ones. I wouldn't give my kids a free ed, that's for sure. Time to wean off the milk and learn to walk on your own.

This person is building a career on their own. They're not sitting around at home not doing anything…they're going to dental school. It is normal in a lot of cultures for parents to pay for their tuition, especially when they happen to be successful physicians or CEOs. Your opinion might be valid in that it is important to "wean off the milk," but when this person is an established dentist, they will obviously be supporting themselves. They will also be able to do so at a much faster rate than someone on max loans!

 

[Shunwei]

This person is building a career on their own. They're not sitting around at home not doing anything…they're going to dental school. It is normal in a lot of cultures for parents to pay for their tuition, especially when they happen to be successful physicians or CEOs. Your opinion might be valid in that it is important to "wean off the milk," but when this person is an established dentist, they will obviously be supporting themselves. They will also be able to do so at a much faster rate than someone on max loans!

It's much different, when you have to pay for your own way than having it handed to you like that. Going to school is actually the easy part, it's the career building afterwards that is the challenge. You don't think there is a big difference between someone who graduates and slowly pays it off with his own hard work, versus someone who gets a free ride and don't have to manage his finances carefully?

Hey, if some people think that getting a free ride from their parents is good, good for them. I would, however, always have more respect for someone who takes it upon himself to pay his own way through and be independent.

When I bought my practice, my parents offered to pay for some of it, but I flatly declined them. I declined because they don't have much money to begin with, and I always feel that a real man should build his career with his own two hands. The actual process of the journey itself often times is the most satisfying part in your accomplishment. But I guess I don't blame some people for wanting the easy way out.

 

[amali]

It's much different, when you have to pay for your own way than having it handed to you like that. Going to school is actually the easy part, it's the career building afterwards that is the challenge. You don't think there is a big difference between someone who graduates and slowly pays it off with his own hard work, versus someone who gets a free ride and don't have to manage his finances carefully?

Hey, if some people think that getting a free ride from their parents is good, good for them. I would, however, always have more respect for someone who takes it upon himself to pay his own way through and be independent.

When I bought my practice, my parents offered to pay for some of it, but I flatly declined them. I declined because they don't have much money to begin with, and I always feel that a real man should build his career with his own two hands. The actual process of the journey itself often times is the most satisfying part in your accomplishment. But I guess I don't blame some people for wanting the easy way out.

I definitely see your side of the argument. I just don't think its wrong for financially successful parents to pay for their children's' dental school. It's not a burden on them and its obviously great for the kid. As far as purchasing a practice, if the parents are buying that too, then your just completely coasting off your parents and not really doing anything for yourself.

My question for you is just how much was your dental school? If its something around 150k, then I think this is very feasible for someone to get loans and and pay them off and build their career with their own two hands. You then purchase a practice and look back and realize you made everything by yourself and for yourself, which is very commendable.
The graduates from my dental school go into debt between 400 and 500k. A lot of the kids enter at the age of 22 and have no idea about debt and interest accumulation. They will not be in ideal situations after dental school. If they have parents that can pay off this burdensome tuition, or at least chip in, I would say its almost a must.

 

[DrJeff]

The reality is, and i'm sure that about 99.9% of folks who graduated dental school with student loans will tell you, that the sooner they pay them off, the better they feel, as then they get to "see" more of what they're working for in their practice coming home to them/their family. Plus. the reality is as a dentist, a bank/lending institution is going to view your credit risk is a favorable situation when you go for a business loan/mortgage, etc.

So I then go back to my original statement, where if you don't need to go into student loan debt, then why would you want to? Especially in this particular situation where some good credit history is already in place

 

[Shunwei]

I definitely see your side of the argument. I just don't think its wrong for financially successful parents to pay for their children's' dental school. It's not a burden on them and its obviously great for the kid. As far as purchasing a practice, if the parents are buying that too, then your just completely coasting off your parents and not really doing anything for yourself.

My question for you is just how much was your dental school? If its something around 150k, then I think this is very feasible for someone to get loans and and pay them off and build their career with their own two hands. You then purchase a practice and look back and realize you made everything by yourself and for yourself, which is very commendable.
The graduates from my dental school go into debt between 400 and 500k. A lot of the kids enter at the age of 22 and have no idea about debt and interest accumulation. They will not be in ideal situations after dental school. If they have parents that can pay off this burdensome tuition, or at least chip in, I would say its almost a must.

I am not saying its wrong, I am just saying that people who don't go through certain experiences won't appreciate the value of the end result. No one likes debt, it's not like I am advocating getting debt for no reason. But for those who have it, we know the value of money and I believe more fiscal responsibility. It's like the kid who delivers papers on hot summer days and gets a bike with his earnings, versus some other kid who just gets it out of the blue from his parents. Who do you think will value his possession more and be proud of what he's got?

Life experiences have a lot to do with how you conduct yourself and your attitude towards life. I was paid peanuts when I was a scientist working 80-100 hours a week so working as a dentist 4 days a week and getting paid well for it is a boon. It's stressful sometimes but because of what I have been through I take it in stride. On the other hand, I have mentioned in my previous posts how some of of my dentist friends tell me how they hate being dentists despite the nice houses and cars they have and rather be either commercial fishermen,bodyguards, or insurance agents. Yet they don't seem to stop and wonder if they were really in those positions, whether they would be living the same lifestyle or living more hand to mouth? So you tell me, if they experienced life a bit more differently, would they cease their pointless whining and man up? I certainly think so.

 

[oralcare123]

Hardship changes personality and not in a good way. Helping children to get a good education is a part of responsible parenting. In my opinion more parents should put money aside for that
It is a myth that people who did not earn do not appreciate things. If I have money, I would buy my child a bike just to make him happy

 

[InspiredDDS]

If you have no students debt you will be able to open your own practice sooner. Loans will hinder your ability to get a big loan because they decrease the amount of available money you have every month. Also I believe debts directly affect your actual credit score. I checked my credit report today and amounts owed counts 10 or 20% toward your score.

 

[wb1]

I wouldn't ask your parents to take out student loan. The student loan follow you to heaven. Who knows what's going to happen? From reading your post, it doesn't seem like shelling out dental school tuitions nor buying a practice for you would even make a dent in their bank 🙂

Ask you parents to invest in your start up. I wouldn't worry about building up credit history through carrying student loan. Your FICO scores should be excellent from credit card history.

 

[wb1]

Hardship changes personality and not in a good way. Helping children to get a good education is a part of responsible parenting. In my opinion more parents should put money aside for that
It is a myth that people who did not earn do not appreciate things. If I have money, I would buy my child a bike just to make him happy

Buying a bike or a BMW to go with Starbucks Latte wont' make your kid happy. There are more to parenting like teaching responsibilities than handing out free educations and ATM cards.

 

[oralcare123]

What I wrote is that I would not make my child deliver newspapers for God knows how long for a bike - I would just buy one. What lesson the child can learn if rich father dentist is making him deliver newspaper for a bike - that father is greedy and does not love him?
There are less extreme ways to teach fiscal responcibility

 

[baktar]

You got a degree, however i'm of the idea that folks got to develop and find out how world works and be able to build it on their own. affirmative loans suck, however if you attend an inexpensive faculty it will still be managed. Years from however you'd wish to face tall and say that you simply designed your own career and business along with your own 2 hands and did not owe anyone.

 

[Glimmer1991]

...But if your parents pay for your school, why should you feel like you "owe them?"

Eh, I get the basis behind a lot of these viewpoints, but I'm going to have to disagree. I'll probably get lambasted for this post, but oh well.

Having parents who pay doesn't necessarily make a person any less motivated, hard-working, mature, or grateful. For goodness sake, the OP has gotten into dental school--she obviously isn't any kind of a slacker, and she obviously wants to do well for herself in life.

If my parents paid for my dental school (they aren't), there's no way in heck I'd look back and think, "Man. I wish I had built this. It's hard to respect myself in this career because I didn't do it all on my own." No way. Instead, I'd think, "Wow! My parents are awesome for setting me up in life and allowing me to begin without any debt. I am going to do my best to make them proud and not squander what they've given me."

I had parents who paid for my undergrad. I still worked HARD during high school. I am incredibly thankful for what they gave me, but I don't feel like I "owe them" or that I "took the easy way out."

There is talk about having greater respect for those who "built their own" careers... Well, how do you know who took out their own loans or had their parents pay? Do most people just offer that up?

Somehow, even with parents who paid for my undergrad, I think I've come out okay.From what I've gathered on SDN, there are plenty of others in my position. I don't see too many people on here who claim to have undergrad loans (though I'd say fewer get their DS paid for by their parents). It's hard to act like these people need to "wean off" their parents or get a taste of the real world, as if they're immature or spoiled. I mean, c'mon--how many spoiled, immature people put in the years of sweat and stress to get into dental school? This is no easy path, and simply having parents with money won't get you here. An intense worth ethic is obviously involved, as is a keen understanding of what one is willing to sacrifice in order to get to where they want to be in life.

Though I never went without, I think my parents were able to teach me fiscal responsibility in other ways. They have set an incredible example. I actually think they might save too much money.

If my parents offered to pay for my dental school, I'd take them up on it in a heartbeat. (I suppose a lot of my reasoning behind this is that I know they could pretty easily--I wouldn't do it if I thought it would genuinely cause financial stress.) I'd just do my best to make them proud--which is the same thing I'll be doing anyways.

In the future, I will be 100% willing to pay for my child's (or children's) school expenses. However, my stipulation will always be that I'll put in what they put in. If they work hard, I'm going to match that monetarily. However, if they slack and aren't performing like they should be, that money stream is going to be cut off. I think I'll know my children's abilities well enough to gauge this. I think this is a better way to teach work ethic than just saying, "You're on your own!"

My parents have done an exceptional job of taking care of me. Though I doubt it will happen because they are such savers, I'd be more than willing to do that for them in the future if I need to. I think that's just love, not me feeling like I owe them.

 

[MatthewLeeDDS]

What I wrote is that I would not make my child deliver newspapers for God knows how long for a bike - I would just buy one. What lesson the child can learn if rich father dentist is making him deliver newspaper for a bike - that father is greedy and does not love him?
There are less extreme ways to teach fiscal responcibility

My dad made me get a job at a fast food restaurant when I was 15 and he certainly didn't have to. I can't tell you how that 2 months of experience changed my view of money, hard work, sacrifice, opportunity, etc. forever. It definitely matters.

I've been around enough people that had things handed to them and they tend to - generally speaking - have their head in the sand when it comes to finances and understanding personal sacrifice and time to make something work.

I certainly don't consider helping a child to understand that work = results "extreme".

 

[oralcare123]

I was talking about extremes in both ways. Working at 15 is very different from working as a child for a bike

 

[Shunwei]

Hardship changes personality and not in a good way. Helping children to get a good education is a part of responsible parenting. In my opinion more parents should put money aside for that
It is a myth that people who did not earn do not appreciate things. If I have money, I would buy my child a bike just to make him happy

The more you reply the more foolish you sound. You are splitting hairs trying to justify yourself, and if that's your comeback then you are just making yourself look bad. At 15 most people would call that a 'kid.' You are almost trying to twist this as if people are talking about that of a slave, child labor where people force children into asbestos factories for profit. Where did anyone ever say that? We are talking about having youngsters voluntarily take a job at the urging of their parents, say, to flip burgers, deliver papers, do a normal job as part of their upbringing. If you can't see the value of that then we don't know what to tell you.

Even at a young age, there are plenty of true, young children who do the same, for fun and for education. Ever see kids run a lemonade stand? Mow a neighbors lawn for some cash? Run an errand for some change? Those people don't do it because someone forced them to, but they do it to earn--with their own labor and hands--some money. Along the way the also learn the value for hard work and appreciate what $$$ entails.

If all you can think is to pay for everything for your child, honestly, maybe you shouldn't have any, because all you'd be giving the world is a spoiled brat who feels entitled to everything. No one needs that kind of human being.

 

[sgv]

The more you reply the more foolish you sound. You are splitting hairs trying to justify yourself, and if that's your comeback then you are just making yourself look bad. At 15 most people would call that a 'kid.' You are almost trying to twist this as if people are talking about that of a slave, child labor where people force children into asbestos factories for profit. Where did anyone ever say that? We are talking about having youngsters voluntarily take a job at the urging of their parents, say, to flip burgers, deliver papers, do a normal job as part of their upbringing. If you can't see the value of that then we don't know what to tell you.

Even at a young age, there are plenty of true, young children who do the same, for fun and for education. Ever see kids run a lemonade stand? Mow a neighbors lawn for some cash? Run an errand for some change? Those people don't do it because someone forced them to, but they do it to earn--with their own labor and hands--some money. Along the way the also learn the value for hard work and appreciate what $$$ entails.

If all you can think is to pay for everything for your child, honestly, maybe you shouldn't have any, because all you'd be giving the world is a spoiled brat who feels entitled to everything. No one needs that kind of human being.

I worked at banana stand after my family's construction company went bankrupt and my grandfather had to go to jail for fraud. It was a hard time for my family but I came out of it and learned that family is the most important thing.

 

[pinkhottie]

Wow, I was just taking my vacation and this blew up!

Glimmer1991 is understading me correctly. I am building a good credit score so I don't need to get student loans. SO I AM NOT.
Yes, my parents paid all of my education. I have no debt. But that doesn't make me a slacker. I am for sure I am more mature than Shunwei think I am.
I came to America at 15 by myself, living with host families for 4 years then College. I will say I am very disciplined, well educated to not fool myself when it comes to education.

Not having student loans under my name doesnt make me "IMMATURE"

I work hard. I am currently working and make $200 a day. Its a lot of money but I WORK FOR IT.
Yes, my parents are paying my tuition, but I WORKED FOR IT

My parents are very happy and proud that they can invest money on their daughter's future.
and they can do this because I got into dental school.
I think I deserve it.

 

[Shunwei]

Wow, I was just taking my vacation and this blew up!

Glimmer1991 is understading me correctly. I am building a good credit score so I don't need to get student loans. SO I AM NOT.
Yes, my parents paid all of my education. I have no debt. But that doesn't make me a slacker. I am for sure I am more mature than Shunwei think I am.
I came to America at 15 by myself, living with host families for 4 years then College. I will say I am very disciplined, well educated to not fool myself when it comes to education.

Not having student loans under my name doesnt make me "IMMATURE"

I work hard. I am currently working and make $200 a day. Its a lot of money but I WORK FOR IT.
Yes, my parents are paying my tuition, but I WORKED FOR IT

My parents are very happy and proud that they can invest money on their daughter's future.
and they can do this because I got into dental school.
I think I deserve it.

I never said that you were immature, in fact I never even addressed you in my posts. If you think you deserve it, you don't need to justify it to me or anyone. I frankly can't care less.

Those who use credit history as an excuse for avoiding loans is wrong. I have my student loans and purchase acquisition borrowing and my credit score stands at 810. They real key is a long, reliable credit history with no defaults, not avoidance of loans.

I would, however, always have more respect for self-made individuals. Always.

 

[Shunwei]

.

 

[oralcare123]

The more you reply the more foolish you sound. You are splitting hairs trying to justify yourself, and if that's your comeback then you are just making yourself look bad. At 15 most people would call that a 'kid.' You are almost trying to twist this as if people are talking about that of a slave, child labor where people force children into asbestos factories for profit. Where did anyone ever say that? We are talking about having youngsters voluntarily take a job at the urging of their parents, say, to flip burgers, deliver papers, do a normal job as part of their upbringing. If you can't see the value of that then we don't know what to tell you.

Even at a young age, there are plenty of true, young children who do the same, for fun and for education. Ever see kids run a lemonade stand? Mow a neighbors lawn for some cash? Run an errand for some change? Those people don't do it because someone forced them to, but they do it to earn--with their own labor and hands--some money. Along the way the also learn the value for hard work and appreciate what $$$ entails.

If all you can think is to pay for everything for your child, honestly, maybe you shouldn't have any, because all you'd be giving the world is a spoiled brat who feels entitled to everything. No one needs that kind of human being.

You are definitely an dingus and a jealous one. Your answers confirm what I said.
I agree with the importance of fiscal responsibility, but sit on a bag of cash and watch your child suffer? Hope you save enough money for a good nursing home.
Since you are so smart, think about potential of a serious injury for a child operating a loan mower, same applies for "flipping burgers"
Your last sentence is so idiotic, it made me change my mind - you are not smart. You are really really stupid and good education has nothing to do with it

 

[wb1]

 

[Ferneezy]

I worked at banana stand after my family's construction company went bankrupt and my grandfather had to go to jail for fraud. It was a hard time for my family but I came out of it and learned that family is the most important thing.

hmm. sounds like that part of your life really blue. did you ever see a therapist for your troubles? or perhaps an analyst?

You are definitely an dingus and a jealous one. Your answers confirm what I said.
I agree with the importance of fiscal responsibility, but sit on a bag of cash and watch your child suffer? Hope you save enough money for a good nursing home.
Since you are so smart, think about potential of a serious injury for a child operating a loan mower, same applies for "flipping burgers"
Your last sentence is so idiotic, it made me change my mind - you are not smart. You are really really stupid and good education has nothing to do with it

children are tougher than you think.

 

[Mattthias]

lol you earned your parents paying for your tuition? Pray tell how?

 

[CleverThought]

This thread has gone downhill fast!

For what my meager opinion is worth, I don't think a parent financing an education for their child will necessarily make that child spoiled and less willing to put effort in the "real world". It is the parents decision on what they spend their money on, and if getting their child a degree with no or minimal debt gives them satisfaction, then why the hell not. Believe me, there are a lot easier ways for a child of a middle to upper class family to make a decent living that doesn't involve 8+ years of school and stressful application processes. For heaven's sake, I could have taken over my father's company and made just as good of a living - or better. Some people are programmed to put in the work, others aren't. I don't think a person's financial situation is indicative of the effort they will put in to their work/business down the line.

I take personal offense so someone saying they will respect me less because I didn't have to take out loans for dental school. I work my butt off, both academically and financially and it is grossly stereotyping to say that someone like me has no financial knowledge and won't appreciate my degree. I've been investing in my retirement since the age of 18, have $15,000 saved for a house, and bought a $16,000 car in cash (my own). While holding down 2-3 jobs during college and graduating summa cum laude - so to say that you don't respect me is personal. I work my tail off learning the ins and outs of the business side of dentistry, and writing a business plan, and all the laws that go with small business ownership. Because of the wonderful gift my parents afforded me, I am able to take on more risk and buy a practice after graduation, if I want. I won't have to go to a corporate chain to just pay my student loan bill each month. Yes I am fortunate, but I don't deserve less respect. I know and comprehend the gift my parents gave me. It is those who say such ignorant things I don't have respect for.

To the OP. Don't take out the loans for sake of credit. It will mess with your debt:income ratio for getting a mortgage and isn't worth the fees associated with it. Continue responsibly using a CC and your FICO score won't suffer.

 

[amali]

^ Very well said.

 

[Shunwei]

This thread has gone downhill fast!

For what my meager opinion is worth, I don't think a parent financing an education for their child will necessarily make that child spoiled and less willing to put effort in the "real world". It is the parents decision on what they spend their money on, and if getting their child a degree with no or minimal debt gives them satisfaction, then why the hell not. Believe me, there are a lot easier ways for a child of a middle to upper class family to make a decent living that doesn't involve 8+ years of school and stressful application processes. For heaven's sake, I could have taken over my father's company and made just as good of a living - or better. Some people are programmed to put in the work, others aren't. I don't think a person's financial situation is indicative of the effort they will put in to their work/business down the line.

I take personal offense so someone saying they will respect me less because I didn't have to take out loans for dental school. I work my butt off, both academically and financially and it is grossly stereotyping to say that someone like me has no financial knowledge and won't appreciate my degree. I've been investing in my retirement since the age of 18, have $15,000 saved for a house, and bought a $16,000 car in cash (my own). While holding down 2-3 jobs during college and graduating summa cum laude - so to say that you don't respect me is personal. I work my tail off learning the ins and outs of the business side of dentistry, and writing a business plan, and all the laws that go with small business ownership. Because of the wonderful gift my parents afforded me, I am able to take on more risk and buy a practice after graduation, if I want. I won't have to go to a corporate chain to just pay my student loan bill each month. Yes I am fortunate, but I don't deserve less respect. I know and comprehend the gift my parents gave me. It is those who say such ignorant things I don't have respect for.

To the OP. Don't take out the loans for sake of credit. It will mess with your debt:income ratio for getting a mortgage and isn't worth the fees associated with it. Continue responsibly using a CC and your FICO score won't suffer.

Buddy, face it, relying on your parents IS taking the easy way out, and for me, that deserves far less respect that someone who has the balls to do it themselves. Not happy with what I am saying? Tough. You went through a whole essay but in the end, you are still taking your parents money. I don't need your respect but I certainly don't give a rats ass about whether you take what I say personal.

So let me repeat it again straight and simple: You can say all you want, but by taking your parents money you are taking the easy way out, and in my book, that deserves far less respect than those who work for it themselves. Comprende?

 

[InspiredDDS]

I worked at banana stand after my family's construction company went bankrupt and my grandfather had to go to jail for fraud. It was a hard time for my family but I came out of it and learned that family is the most important thing.

There's always money in the banana stand.

 

[MatthewLeeDDS]

You are definitely an dingus and a jealous one. Your answers confirm what I said.
I agree with the importance of fiscal responsibility, but sit on a bag of cash and watch your child suffer? Hope you save enough money for a good nursing home.
Since you are so smart, think about potential of a serious injury for a child operating a loan mower, same applies for "flipping burgers"
Your last sentence is so idiotic, it made me change my mind - you are not smart. You are really really stupid and good education has nothing to do with it

You can't be serious! The fear of a child mowing their fingers off or losing and eyeball working a normal job is greater than the lessons learned from having to work and earn something? How about anyone who has a job doing anything at all, is that worth the "risk"? Maybe we should all sit in the corner and suck our thumbs until the cavalry comes to save us from our own collective stupidity.

Your definition of the word "suffer" sound a lot like my definition of "work" and I wonder if you've ever done either.

To the OP, since this is their thread after all! If your parents want to pay for school, thank them endlessly. You'll never "feel" the weight of that debt but you can intellectually understand it. There are more ways to build character than putting yourself through school and it's unbelievably generous of your parents to do that for you. The lifelong impact of being able to have money available the day you graduate to invest thousands in an IRA in your mid-20s and save for your own future, instead of shelling out $100s of thousands to the government, is almost beyond comprehension.

The swing there is literally millions of dollars if you do this correctly.

As for loans, just let them pay the tuition directly and be done with it. If they take out a loan in your name and suddenly some catastrophe happens, guess who has student loans now? Glimmer1991 is right, having loans on top of the small credit lines you already have aren't worth the added risk. Debt = risk, so avoid it if you can.

 

[oralcare123]

I think it is cruel to make a small child work for a bike or clothes or food. There are definitely plenty of other ways to make a child deserve something which does not involve dangerous activities listed. I am a mother and a doctor so I know all the risks and I do not have ten children to spare.
No one was saying anything about children not doing anything at all, but if parents have plenty of money, there is no need to take loans and make banks rich. It is just plain stupid
In regards to the person I have answered above, he is just jealous, because he did not have the same opportunity as an author of the thread. That is why he was so harsh

 

[MatthewLeeDDS]

I think it is cruel to make a small child work for a bike or clothes or food. There are definitely plenty of other ways to make a child deserve something which does not involve dangerous activities listed. I am a mother and a doctor so I know all the risks and I do not have ten children to spare.
No one was saying anything about children not doing anything at all, but if parents have plenty of money, there is no need to take loans and make banks rich. It is just plain stupid
In regards to the person I have answered above, he is just jealous, because he did not have the same opportunity as an author of the thread. That is why he was so harsh

I agree there are lots of ways to teach a child responsibility so we agree there.

No one so far here has advocated making a child work for their own clothes or food (since doing so would get the child taken by child services, come on!), nor has anyone advocated any dangerous work of any kind so I'm not sure what you're getting at with either of those statements. You're addressing comments that don't exist.

My parents had very little when I was growing up and with my medical situation, they sacrificed a lot to keep me healthy. My dad's business suddenly did very well when I was in high school and he totally covered my undergraduate education so I have been on both sides of the fence. Once I got to college, though, I can say I was far more thankful for my dad financing my education than many of my classmates who drove luxury cars and never had a job in their life growing up because I knew what it meant to be poor and work for the fun things I wanted when I was younger. Many of them had entitlement attitudes and expected their parents to pay for everything.

I absolutely don't think the OP somehow doesn't deserve to have their dental school tuition covered and of course I wish I was in their situation, who wouldn't! Besides, I was awarded an HPSP scholarship so guess what, I also have $0 debt! Why would I be jealous? I had the same opportunity in undergrad and through the military in dental school.

Despite our disagreements, we can both agree that the OP's parent's shouldn't fool with loans and just pay it outright and that's where I'll leave it.

 

[oralcare123]

I was not talking about you. I was referring to dingus. He wanted to make child deliver newspapers for a bike, mowing loan and flipping burgers - all of which I consider dangerous activities. I might have misunderstood the age at which a child might want a bike - in my experience it is younger then 10 years old.
I was also on both sides, so I also know. What I also know that it is unfair for someone, who was unfortunate enough to meet a lot of bad people to tell another person, that they do not deserve respect only because their parents payed for school. Have some flexibility - in some cultures it is normal, as normal as not to kick your children out of the house at 17 or leave your parents in a nursing home. Does not mean that it is not normal for some other people

 

[r2thekesh]

The problem with all of this is you as a future dentist will have the opportunity to pay regular taxes or pay less taxes and give your children more money. Which would you do? There are like 5 different college funds that will lower your taxes. If you want to work hard for everything that's fine but I'd rather out think everyone and use my energy more efficiently for both me and my family.