Saturday, May 31, 2008

Student Line of Credit

After getting my student fees invoice yesterday, I decided to go to the bank and apply for a student line of credit. A student line of credit is different from a regular line of credit in that you only have to pay interest, while you are a full time student. With a student line of credit, you don't actually have to pay back any borrowed money until six months after finishing school. I already have a line of credit that I could use for school, but I would have to pay back principle in addition to interest if I used it.

The person at the bank had a hell of a time trying to put my application into the computer. At one point she actually said, "you don't fit into any of the boxes". Apparently most people who apply for a student line of credit still live with their parents, have their parents cosign, don't have a mortgage, haven't been working for 12 years and don't have any retirement savings...

I used to think that I would borrow some money from my retirement savings plan to pay for school. Now I'm thinking that borrowing money from the bank is a better way to go. I already borrowed money from my retirement savings plan for the down payment on my condo.

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