Should I take out loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.

Should I Take Out Loans

No
2
25%
Yes, and invest in a CD
3
38%
Yes, and invest in a conservative mutual fund strategy
0
No votes
Yes, and invest in high yield/high risk stocks
2
25%
Yes, and invest it on black on the roulette wheel
1
13%
 
Total votes: 8

flyingfish
Posts: 7
Joined: Wed Mar 16, 2011 1:44 am

Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 1:53 am

A little background. I'm getting a special scholarship that will cover my tuition and living expenses at one of HYS. I have no need to take out loans or any other financial aid. But I was told by the schools Financial aid office that I could still apply for loan only grants up to the COA. So if tuition is say 50k and COA is 75K I can take out 25k in loans. I was wondering would it be wise to take out this 25k every year and put it into some type of interest bearing account or low risk mutual fund and then pay it back after graduation (keeping the interest for my self of course). Is this rational? Would it work? Is it illegal? Unethical? Please help.

Edit: I just ran the numbers and I would make approximately 3K by the time I graduate if I went the CD route.
Last edited by flyingfish on Wed Mar 16, 2011 3:03 am, edited 2 times in total.

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MrPapagiorgio
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Re: Should I take out loans

Postby MrPapagiorgio » Wed Mar 16, 2011 1:58 am

Hmm. Interested to see what the responses are.

spets
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Joined: Thu Sep 03, 2009 1:44 pm

Re: Should I take out loans

Postby spets » Wed Mar 16, 2011 1:59 am

Wow, congrats :shock:

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fatduck
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Re: Should I take out loans

Postby fatduck » Wed Mar 16, 2011 2:01 am

stake me at 2/4 and 3/6 NL, 50/50 with makeup

flyingfish
Posts: 7
Joined: Wed Mar 16, 2011 1:44 am

Re: Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 2:05 am

spets wrote:Wow, congrats :shock:


lol thanks. so what do you guys think I need responses? should I start a poll?

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nshapkar
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Re: Should I take out loans

Postby nshapkar » Wed Mar 16, 2011 2:08 am

flame.

flyingfish
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Joined: Wed Mar 16, 2011 1:44 am

Re: Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 2:09 am

nshapkar wrote:flame.


why?

flyingfish
Posts: 7
Joined: Wed Mar 16, 2011 1:44 am

Re: Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 2:16 am

ok someone said no, can you give me your reasons. I think I'm actually looking for a reason not to do this. It seems like it could be wrong but I don't know what laws or moral code I would actually be breaking.

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DMBFan
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Re: Should I take out loans

Postby DMBFan » Wed Mar 16, 2011 2:25 am

IMO: Take out all subsidized loans that you are eligible for. These do not accrue interest while you are in school. But unsubsidized and private loans do accrue interest while you are in school and I doubt they have an interest rate much lower than you could possibly get on a CD. Mutual funds maybe...but that's more like gambling than investing w/ just a 3 year time frame.

Moral/ethical issue.....I don't see one. If you're eligible for the loans, you have the right to use them as you see fit.

flyingfish
Posts: 7
Joined: Wed Mar 16, 2011 1:44 am

Re: Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 2:41 am

DMBFan wrote:IMO: Take out all subsidized loans that you are eligible for. These do not accrue interest while you are in school. But unsubsidized and private loans do accrue interest while you are in school and I doubt they have an interest rate much lower than you could possibly get on a CD. Mutual funds maybe...but that's more like gambling than investing w/ just a 3 year time frame.

Moral/ethical issue.....I don't see one. If you're eligible for the loans, you have the right to use them as you see fit.


Thanks man for some reason I was thinking loans are supposed to only be used because you need them, oh and thanks for the info about the difference in loans. I hadn't researched it so well because I knew I wouldn't have to take any out. Are Direct Graduate plus loans subsidized. I know I"m being lazy and I should look it up my self. which I will.

edit: found my answer thanks again man.
Last edited by flyingfish on Wed Mar 16, 2011 2:48 am, edited 1 time in total.

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fatduck
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Re: Should I take out loans

Postby fatduck » Wed Mar 16, 2011 2:45 am

is your "special scholarship" of the special olympics variety?

flyingfish
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Joined: Wed Mar 16, 2011 1:44 am

Re: Should I take out loans

Postby flyingfish » Wed Mar 16, 2011 2:50 am

fatduck wrote:is your "special scholarship" of the special olympics variety?


Actually the reason I made this name is because I wasn't sure if it was something I should be doing so I didn't want to be outed if it was unethical. Sorry I don't know as much as you, that's why I'm asking in this forum. There is no reason for name calling.

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enron123
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Re: Should I take out loans

Postby enron123 » Wed Mar 16, 2011 11:38 am

I don't believe

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thecilent
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Re: Should I take out loans

Postby thecilent » Wed Mar 16, 2011 11:53 am

Obvious flame guys. Come on now

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incase2011
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Re: Should I take out loans

Postby incase2011 » Wed Mar 16, 2011 12:05 pm

It seems to me - as best it could seem to any 0L - that this amounts to fraud. Certainly, it's a misappropriation of funds. There should be stipulations inherent in any loan detailing the allotment of funds contingent upon their use for necessary educational expenses. Sounds like this fin. aid. person doesn't know what they're talking about. Although you could use the loans to pay for COA, and the special scholarships for special peoples money for investing, right? I would think that'd be safer - most scholarships don't have any stipulations, once granted.

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fatduck
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Re: Should I take out loans

Postby fatduck » Wed Mar 16, 2011 12:08 pm

thecilent wrote:Obvious flame guys. Come on now

you realize only two people took this thread seriously




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