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Student loans

So if you KNOW you already have to take a student loan to cover tuition, and you're approved for WELL over what tuition will cost. If you know that your overall budget is expected to be "ok" for the next 5 months, would you take extra to have on hand in case "something happens"? Or would you just take the minimum you know you need NOW?

 
Anonymous

Asked by Anonymous at 11:56 AM on Sep. 10, 2010 in Money & Work

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Answers (9)
  • Right - what's a little more? But if you do this enough times, the debt is more than your mortgage, which is the situation we are in NOW.

    If you can get by just taking the amount you need for tuition, do it. But if you need more for books, gas to get there, etc - do it... but remember it all has to be paid back, with interest... the government will not let you off the hook :(
    science_spot

    Answer by science_spot at 12:33 PM on Sep. 10, 2010

  • Oh, and how much do you try to keep on hand in savings for "just in case"?
    Anonymous

    Comment by Anonymous (original poster) at 11:56 AM on Sep. 10, 2010

  • I usually take the bare minimum. I don't want to have to payback extra b/c I wanted to make sure that I had cash on hand.
    coala

    Answer by coala at 11:57 AM on Sep. 10, 2010

  • never hurts to have a little money in case something happens. i mean if you dont need it , dont use it..but it will be there just in case you need it :)
    Brittney20

    Answer by Brittney20 at 11:59 AM on Sep. 10, 2010

  • I'm not sure, but I'll tell you this. That's what my DH did to cover school and living expenses 18yrs ago, and we're still paying it back! It's a huge payment that we'll be making for a long time.
    toobigfrogs

    Answer by toobigfrogs at 11:59 AM on Sep. 10, 2010

  • Extra. With the economy and changes in our system. Save it for a rainy day.
    JOCKEYP2PMOM

    Answer by JOCKEYP2PMOM at 12:00 PM on Sep. 10, 2010

  • Take only what you need! I know from first hand experience. I took everything they would give and now I have $50THOUSAND dollars in student loan debt. Be smart about it. If there is an emergency later on you can always contact the financial aid office and get more.
    Anonymous

    Answer by Anonymous at 12:01 PM on Sep. 10, 2010

  • Well, let me just say that my BIL takes out everything he possibly can for his loans, he is working on his master's degree. Since he doesn't work, he uses his loan money to pay his mortgage/bills. By the time he is done, he will owe almost $150,000. Personally I think it's the dumbest thing ever.

    I made a similar mistake when I first started. As a single mom of one, I qualified for full financial aid, all of my books and tuition were covered. But my dumbass decided to take out loans anyway to help me out. Now I'm 17,000 in debt that I didn't NEED to be in, and I'm only halfway through an associates degree. The ONLY upside is that it has helped build my credit.

    Personally, I wouldn't do it again.
    zoeysmom331

    Answer by zoeysmom331 at 12:04 PM on Sep. 10, 2010

  • Oh, he's already got $30k in student loans... will have to take at least $4k for THIS semester.... so when you're already $35k in the hole ... what's a little more? At least student loan interest rates are nowhere near as bad as credit card rates.

    Oh, plus there's the $40k that we're already paying on MY student loans. But we have zero other debt. No credit cards, no car payments, no mortgage (though we are paying rent). Mine is all locked in at a fixed 1.25% interest, and most of his are older so they're at about 2.5%.
    Anonymous

    Comment by Anonymous (original poster) at 12:19 PM on Sep. 10, 2010

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