Federal Stafford Loans

[Zilong]

So I'm eligible for the stafford loans. At the moment I don't really need them for tuition since I got grants covering it, though I was wondering if I can just take some loans to eliminate my credit card balance since the rate for the loans is obviously lower.

Is this possible?

[MF Perm tha Fineass]

So I'm eligible for the stafford loans. At the moment I don't really need them for tuition since I got grants covering it, though I was wondering if I can just take some loans to eliminate my credit card balance since the rate for the loans is obviously lower.

Is this possible?

My wife used most of the balance from her loans and grants leftover to pay rent and bills and tucked the rest of it away. As far as I understood at the time as long as it in some part pays for your living expenses for college as well you can apply for however much you're willing to pay back.

[nitsuj]

You can use them for whatever, usually living expenses. But don't be stupid. It's way easy to get more than a new car's worth of loans and they will take a *very* long time to pay back.

(Speaking from experience)

[Darus Grey]

Assuming you aren't a total loser who has no responsibility what-so-ever.

Take out the maximum allowed subsadized loans EVERY SEMESTER.

Put them into a CD(or an Index fund if you want to be riskier, though this isn't statistically risky).

Absolutely do not touch this money for any non-life-threatening reason.

Soon as it's about to start incurring interest after graduation, pay it all back(you're just paying back the principle you borrowed anyways).

Enjoy the thousands of dollars of interest you have left over.

I've made over 6 figures in 12~ years of school doing nothing but incurring interest on low-rate/subsadized student loans.

[Jimothy]

Wow, I wish I would have known that 6 years ago. That's brilliant.

[Mojo]

Pretty much what Darus said. Take out all of the subsidized loans that you can. You always have the option to pay them back (as long as you're not irresponsible and spend the money on stupid shit) and the government will pay for the interest until you graudate. There really is no reason you shouldn't be doing this.

[Julian]

kinda bump. I remember reading this topic a while back, and then hoped more people would post but no one did, so here I go.

Assuming you aren't a total loser who has no responsibility what-so-ever.

Take out the maximum allowed subsadized loans EVERY SEMESTER.

Put them into a CD(or an Index fund if you want to be riskier, though this isn't statistically risky).

Absolutely do not touch this money for any non-life-threatening reason.

Soon as it's about to start incurring interest after graduation, pay it all back(you're just paying back the principle you borrowed anyways).

Enjoy the thousands of dollars of interest you have left over.

I've made over 6 figures in 12~ years of school doing nothing but incurring interest on low-rate/subsadized student loans.

Any way you (or anyone else) could give a little more info/detail on this? I still got 2 (maybe 3) years left of school, never taken any loans because I don't need to, as grants pay for everything and still end up giving me a nice amount of leftover spending money.

I'm not irresponsible with my money, and I don't have a car or a house or anything so I know I wont have to touched any of the loaned money, so as someone else said, no reason to not do this. Problem is, I'm clueless and have no idea how to go about it or whatever.

Thanks /bg/!

[Dense]

http://ponderingsfrompluto.files.wor...tafford-22.jpg

[wagon]

Assuming you aren't a total loser who has no responsibility what-so-ever.

Take out the maximum allowed subsadized loans EVERY SEMESTER.

Put them into a CD(or an Index fund if you want to be riskier, though this isn't statistically risky).

Absolutely do not touch this money for any non-life-threatening reason.

Soon as it's about to start incurring interest after graduation, pay it all back(you're just paying back the principle you borrowed anyways).

Enjoy the thousands of dollars of interest you have left over.

I've made over 6 figures in 12~ years of school doing nothing but incurring interest on low-rate/subsadized student loans.

One of my finance professor did something similar and he bragged about it in class saying how he used the money he made and bought his first car.

[Meresgi]

Darus has an awesome plan, I never thought about that, but since im still in college and 1/2 way through I think i'll start doing it lol.

Also wasnt a law passed recently that you'll only have to pay back a certain % of your yearly salary for federal loans and after like 20yrs or so they will be negated? Granted that's a shit load of money you'd have to borrow, unless you're going for a doctorate or something.

[Seanr]

pretty sure he's talking about this. http://studentaid.ed.gov/PORTALSWebA...tes2008-09.jsp

I wshi would've known this, along with a bunch of other financial stuff that no one ever sat down and talked to me about.