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3 Bumps

Taking out a loan to cover half of rent for 2 years while I am in college....

My SO works and is school PT, I don't work but am in school FT

I am switching schools and the tuition is being bumped 5k
we have help with food stamps, which is a savior
The University I am going to is in a city area, and to be able to live with less worry we will have to move to a better part of town. Rent will be between 1100 and 1300. I was thinking of taking out a loan to cover part of rent, for 2 years so I can just finish school, maybe only 18mos if I can really bust my butt. My tuition will be able to be covered. I will have a degree when done and only decided that I will stay on FS because we really need the help, and yesterday when I asked, ppl said it didn't make much sense to take out a higher loan to cover food too.

So I am thinking, when I add all of the extra expenses, 15k...we will choose to pay interest while I finish out my degree.

Taking out a loan to help with rent...yes? or no? why?


Asked by Anonymous at 4:06 PM on Dec. 11, 2010 in Money & Work

This question is closed.
Answers (9)
  • You're talking about student loans right? So yeah you can easily get $15,000 in student loans. In my opinion, a little bit too easily.

    Seriously if this is your ONLY option and that's the cheapest safest place you can find. Then do it. The problem is that you'll graduate from college- and let's say you do get the job. Then you'll be making more money, but you'll have some massive student loans to pay off. $15,000 is $1000 a month for 15 months plus interest! That's almost as much as your rent is. Or $500 for 30 month plus interest (2 and a half years!!). Really crunch the numbers. If you graduate, if you get the job, will you be able to pay off all those loans in a timely manner?

    Also another thought, when we took out student loans we often took out more than we needed and spent it on stuff we didn't need. Could you find the extra money by cutting lifestyle? Sell a car, stop eating out, cancel cable etc?

    Answer by Erica_Smerica at 5:01 PM on Dec. 11, 2010

  • No! It is such a pain paying back the money and even though you will have a degree that doesn't mean you will get an awesome job! Even with a 4 year degree a lot of people still need to work their way up to get a good job. Honestly, get a job and a cheaper apartment. A lot of people don't live well while in college and most work.

    Answer by Aquarius80 at 4:09 PM on Dec. 11, 2010

  • NO, 1st of all with only 1 person actually working where & who would give you such a large loan without collateral like a home?
    Next the intrest etc.. on a loan makes them not worth getting. Case in point, a friend of mine needed a small loan so she went and applied for a $160 loan. They told her that for this loan she would pay $59.40 per month for 4 months ($236.60 in all) and if she missed a payment they would tack on an extra $22 late fee. She got said loan about 14 months ago but after her 2nd payment she lost her job and couldn't afford the next 2 payments, due to her having a hard time finding work outside of odd jobs here & there she was forced to pay to renew her loan a couple of times which only means she starts paying it from the top again. She finally got it paid off but said it was NOT worth it because in the end she paid them back around $800 for that tiny $160 loan so I would think long and hard about it.

    Answer by Anonymous at 4:18 PM on Dec. 11, 2010

  • Well then I will have to take out a loan for tuition

    Comment by Anonymous (original poster) at 4:22 PM on Dec. 11, 2010

  • I intern currently, they usually hire their interns after they get their degree, since to be on salary you need a degree. I just make menial money from this intern but I need it.

    Comment by Anonymous (original poster) at 4:27 PM on Dec. 11, 2010

  • You can't take out a personal expenses loan that big without proving you can pay it back AND using collateral that they can take to cover it if you don't pay it back.

    Answer by 405mom at 4:45 PM on Dec. 11, 2010

  • school loans have lower interest rates than other types of loans

    Answer by admckenzie at 4:46 PM on Dec. 11, 2010

  • Continue:

    Heck just cleaning a few homes on the weekend and you could probably come up with the money to pay for half the rent. Really though I don't know your situation, but I bet if you looked at your budget, and looked at extra income and/or selling some stuff you could come up with an extra five or six hundred dollars a month. I'm not saying it will be easy- but we both know that student loans add a lot of unnecessary risk!

    Answer by Erica_Smerica at 5:03 PM on Dec. 11, 2010

  • I am going to try and find a part time job right now and see if I can't save, the only problem is I have a lot of school, but maybe I can get a weekend job.

    Comment by Anonymous (original poster) at 5:40 PM on Dec. 11, 2010