DS ( a youngster) has mentioned something to the effect that firsties and juniors are eligible for some type of loan that can be used to buy a car in the spring semester of those academic years??? Is that the ACE loan or something else?
That is why you see a lot of Corvettes, Mustangs and big pickups in the 1st/c parking along the seawall. Marine Uniforms cost big bucks out of USNA.
My brother-in-law graduated from USNA in the '80's and told DS he used his loan to buy a new Mustang! Fortunately DS is sensible and bought a used car.
Stupid, yes. But at the same time, also kind of awesome and epic.
He thought he was making progress on his spending habits when he told me he had found a club in DC that had a 1-drink minimum and not a 2-drink
Financial literacy begins at home, when kids get that first dime.On a more serious note, does USNA have some form of financial literacy program now ? I seem to recall that we had a handful of briefings late First Class year, trying to prepare us for the real world. That would probably be more effective earlier in the game, before the Midshipmen go out and do stupid things with the money they have.
If managed wisely, it also helps establish a good credit rating - useful down the road when looking for competitive mortgage rates.
In a rational society that would be true. However, interest rates vary based on an applicant's credit rating, and credit rating is not calculated on assets or job history. It is solely based on a demonstrated history of an applicant borrowing money and making repayments.If managed wisely, it also helps establish a good credit rating - useful down the road when looking for competitive mortgage rates.
This is a fallacy and the credit card companies have marketed to my Mid (as they do all college kids) that she needs to 'establish' credit now so she will have a good credit rating later. If you show up at a bank/credit union with $ in the bank and a good job with a solid work history - like being a Naval/Marine Officer with 0 debt - you will have no as in absolute zero issue in obtaining a mortgage/car loan at attractive rates.
There are pro's and con's to the loan program being discussed, but using it to establish a credit history for later is not one of them