Student loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
chocho
Posts: 86
Joined: Tue Feb 23, 2010 11:39 pm

Student loans

Postby chocho » Tue Aug 03, 2010 1:59 pm

So, real fast, if I have undergrad debt with a higher interest rate than my law school debt would be, would it make sense to take out the max for law school (full ride so that is only about 20k) and take the extra money to repay my undergrad debt?

jaydizzle
Posts: 714
Joined: Sat Jan 17, 2009 6:28 pm

Re: Student loans

Postby jaydizzle » Tue Aug 03, 2010 2:01 pm

Hmm good question. I think I may do this.

chocho
Posts: 86
Joined: Tue Feb 23, 2010 11:39 pm

Re: Student loans

Postby chocho » Tue Aug 03, 2010 2:03 pm

Anyone have a legitimate reason why one shouldnt do this?

thechee
Posts: 174
Joined: Tue Oct 06, 2009 8:42 am

Re: Student loans

Postby thechee » Tue Aug 03, 2010 2:07 pm

I did something similar a couple of years ago. My wife was offered really low interest grad school loans, so we took out the max amount and paid off a bunch of our undergrad loans. Never had any problems. They offer you the loans to cover your basic expenses. Rapidly accruing student loan interest is definitely a basic expense.

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blurbz
Posts: 1229
Joined: Mon Jun 29, 2009 10:43 pm

Re: Student loans

Postby blurbz » Tue Aug 03, 2010 2:08 pm

I think it is illegal/not allowed by the terms of gradplus/stafford loans. I'm not absolutely positive, though, but I'd look into it if I were you.

Edit: thechee is probably right on this. I'd take his experience over my conjecture any day.

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swc65
Posts: 1003
Joined: Wed Jul 22, 2009 11:27 am

Re: Student loans

Postby swc65 » Tue Aug 03, 2010 2:10 pm

Why are your UG interest rates higher? Are they private loans?

If you're paying off private UG loans with gubment Law Loans, I think that would be a great idea.

chocho
Posts: 86
Joined: Tue Feb 23, 2010 11:39 pm

Re: Student loans

Postby chocho » Tue Aug 03, 2010 2:16 pm

swc65 wrote:Why are your UG interest rates higher? Are they private loans?

If you're paying off private UG loans with gubment Law Loans, I think that would be a great idea.


government loans (stafford ones at least) change depending on when you take them, so I have 3 loans remaining from undergrad, soph jr and sr years, and they are three different rates, even though they are all fixed.

JJWAL
Posts: 35
Joined: Mon Aug 10, 2009 3:43 pm

Re: Student loans

Postby JJWAL » Tue Aug 03, 2010 2:27 pm

.




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