Do you HAVE to give back unused loans at end of semester?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
NYU1L2012
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Joined: Fri Dec 23, 2011 7:32 pm

Do you HAVE to give back unused loans at end of semester?

Postby NYU1L2012 » Sat Jan 07, 2012 4:36 pm

Say I take out up to the full student budget via Stafford and Grad Plus. But I live on less than that amount. Can I choose to keep the difference in savings or spend it? Or, do I have to give the unused portion back?

bruss
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Joined: Tue May 24, 2011 3:58 am

Re: Do you HAVE to give back unused loans at end of semester?

Postby bruss » Sat Jan 07, 2012 5:04 pm

Once you take out a loan its ur money. Do what ever you want with it.

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5ky
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Re: Do you HAVE to give back unused loans at end of semester?

Postby 5ky » Sat Jan 07, 2012 5:07 pm

But really what you should do if that happens is take that excess and pay it back immediately, so that you aren't paying interest on loans you don't even need.

merc280
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Re: Do you HAVE to give back unused loans at end of semester?

Postby merc280 » Sat Jan 07, 2012 5:12 pm

Is it also fine if you never cash the excess checks they give?

chrisokc
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Re: Do you HAVE to give back unused loans at end of semester?

Postby chrisokc » Sat Jan 07, 2012 5:19 pm

merc280 wrote:Is it also fine if you never cash the excess checks they give?

One check per semester, but most people use direct deposit now that we're in the modern era.

Jante05
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Re: Do you HAVE to give back unused loans at end of semester?

Postby Jante05 » Wed Jan 11, 2012 12:00 am

5ky wrote:But really what you should do if that happens is take that excess and pay it back immediately, so that you aren't paying interest on loans you don't even need.
+1 I would think so

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cinephile
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Re: Do you HAVE to give back unused loans at end of semester?

Postby cinephile » Wed Jan 11, 2012 12:06 am

If you're doing unpaid work this summer, the excess loans can help with your living expenses. At least, that's what I hope to do, if I can learn to be frugal.

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fashiongirl
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Re: Do you HAVE to give back unused loans at end of semester?

Postby fashiongirl » Wed Jan 18, 2012 11:30 pm

You don't have to give it back, it's your money but you will have to pay it back sooner or later.

What I would do is I would pay off any other debt I have such as if I had a car payment or mortgage. Otherwise I'd put it in my roth IRA or stocks or 401k. The interest on the loan should be low enough that you could afford to pay it off later. Besides, I would want my money to work best for me. The greatest return will likely come from investing it earlier rather than paying the loan back immediately. After I get a higher-paying job I would start paying off the loans aggressively if I had no other debt.

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IAFG
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Re: Do you HAVE to give back unused loans at end of semester?

Postby IAFG » Wed Jan 18, 2012 11:33 pm

If you're getting firm work, you should save it and take out less next time to avoid the fat origination fee/accumulating interest.

If you're doing PI and have good LRAP, I would take every fucking penny plus some and sock it away.

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YourCaptain
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Re: Do you HAVE to give back unused loans at end of semester?

Postby YourCaptain » Thu Jan 19, 2012 12:16 am

is the interest accumulating on it?

if youre investment savvy at all you could try to turn a profit. definitely did this one semester.




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