What to do with extra loan money

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
User avatar
Ded Precedent
Posts: 767
Joined: Thu Mar 08, 2012 11:26 pm

What to do with extra loan money

Postby Ded Precedent » Mon Apr 16, 2012 4:13 pm

I've decided to accept the full amount of my loan just to be on the safe side but between my scholarship and savings I think I'll have an extra 5k to 10k a year. It seems dumb to put that money in a savings account and let the unsubsidized portion whither away to interest and inflation. Any ideas on where to keep it where it's accessible if there's unforeseen expenses I haven't accounted for but won't make me feel like I'm flushing money down the toilet?

Thanks.

User avatar
hichvichwoh
Posts: 442
Joined: Fri Mar 16, 2012 11:21 am

Re: What to do with extra loan money

Postby hichvichwoh » Mon Apr 16, 2012 4:22 pm

don't...take...the full...amount

071816
Posts: 5511
Joined: Thu Mar 31, 2011 8:06 pm

Re: What to do with extra loan money

Postby 071816 » Mon Apr 16, 2012 4:25 pm

You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.

User avatar
Ded Precedent
Posts: 767
Joined: Thu Mar 08, 2012 11:26 pm

Re: What to do with extra loan money

Postby Ded Precedent » Mon Apr 16, 2012 4:25 pm

hichvichwoh wrote:don't...take...the full...amount

I'm not taking out GRAD PLUS loans or anything. So I guess I'm not technically taking out the "full" amount. I'm just taking out 5k-10k more than what I think my expenses will be to be safe.

User avatar
gaud
Posts: 5790
Joined: Sat Feb 05, 2011 2:58 am

Re: What to do with extra loan money

Postby gaud » Mon Apr 16, 2012 4:33 pm

chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.


This and this:

You could always give back what you don't use.

User avatar
Ded Precedent
Posts: 767
Joined: Thu Mar 08, 2012 11:26 pm

Re: What to do with extra loan money

Postby Ded Precedent » Mon Apr 16, 2012 4:35 pm

chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.

I haven't finalized anything yet, I'm still trying to think this through. I didn't know I could request additional funds at any point although the idea of haggling mid semester to get more money kind of scares me.

rad lulz
Posts: 9844
Joined: Sun Feb 19, 2012 10:53 pm

Re: What to do with extra loan money

Postby rad lulz » Mon Apr 16, 2012 4:40 pm

Image

User avatar
gaud
Posts: 5790
Joined: Sat Feb 05, 2011 2:58 am

Re: What to do with extra loan money

Postby gaud » Mon Apr 16, 2012 4:41 pm

^ lulz

071816
Posts: 5511
Joined: Thu Mar 31, 2011 8:06 pm

Re: What to do with extra loan money

Postby 071816 » Mon Apr 16, 2012 4:46 pm

Ded Precedent wrote:
chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.

I haven't finalized anything yet, I'm still trying to think this through. I didn't know I could request additional funds at any point although the idea of haggling mid semester to get more money kind of scares me.

I'm genuinely curious, if you have a well-thought-out budget, what sorts of things would require you to need more emergency loan money mid semester?

User avatar
Tiago Splitter
Posts: 15475
Joined: Tue Jun 28, 2011 1:20 am

Re: What to do with extra loan money

Postby Tiago Splitter » Mon Apr 16, 2012 4:47 pm

Throw it into a Roth and pray you can beat the Stafford/GradPlus rates. I'm assuming the origination fee is a sunk cost.

User avatar
gaud
Posts: 5790
Joined: Sat Feb 05, 2011 2:58 am

Re: What to do with extra loan money

Postby gaud » Mon Apr 16, 2012 4:48 pm

If an emergency comes up you could also just use a credit card

BlueDiamond
Posts: 953
Joined: Wed Sep 29, 2010 12:56 pm

Re: What to do with extra loan money

Postby BlueDiamond » Mon Apr 16, 2012 4:51 pm

I used mine to buy a timeshare in Maui

User avatar
Ded Precedent
Posts: 767
Joined: Thu Mar 08, 2012 11:26 pm

Re: What to do with extra loan money

Postby Ded Precedent » Mon Apr 16, 2012 4:54 pm

chimp wrote:I'm genuinely curious, if you have a well-thought-out budget, what sorts of things would require you to need more emergency loan money mid semester?

Emergency types of stuff. Like if my car breaks down or if I land a sweet summer gig that requires me to move (lol) and make two rent payments. Bail money or gambling binges. Just stuff like that.

User avatar
MrPapagiorgio
Posts: 1747
Joined: Sat Feb 13, 2010 2:36 am

Re: What to do with extra loan money

Postby MrPapagiorgio » Mon Apr 16, 2012 4:58 pm

Hookers and blow brah. Get accustomed to that biglawl lifestyle from the get go so when you graduate, you can act like you've been there before.

iowalum
Posts: 326
Joined: Mon Oct 25, 2010 5:15 pm

Re: What to do with extra loan money

Postby iowalum » Mon Apr 16, 2012 5:01 pm

chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.


If anyone actually has experience with this - what kind of paperwork is needed/how long does it take?

User avatar
dingbat
Posts: 4976
Joined: Wed Jan 11, 2012 9:12 pm

Re: What to do with extra loan money

Postby dingbat » Mon Apr 16, 2012 10:45 pm

Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.

Or, if you want, I know some prime real estate for you to invest in....

iowalum
Posts: 326
Joined: Mon Oct 25, 2010 5:15 pm

Re: What to do with extra loan money

Postby iowalum » Mon Apr 16, 2012 11:00 pm

dingbat wrote:Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.

Or, if you want, I know some prime real estate for you to invest in....


I may be wrong, but isn't this illegal? If not I would consider an IRA, but I'm pretty sure I was told that you can't/shouldn't invest with your loan money.

User avatar
dingbat
Posts: 4976
Joined: Wed Jan 11, 2012 9:12 pm

Re: What to do with extra loan money

Postby dingbat » Mon Apr 16, 2012 11:07 pm

iowalum wrote:
dingbat wrote:Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.

Or, if you want, I know some prime real estate for you to invest in....


I may be wrong, but isn't this illegal? If not I would consider an IRA, but I'm pretty sure I was told that you can't/shouldn't invest with your loan money.

The real estate thing was a joke.
Investing student loan money isn't illegal, just stupid
As for sticking it into an IRA, there was a whole thread on paying down loans vs investing in an IRA explaining why it's a dumb move.

User avatar
laxbrah420
Posts: 2748
Joined: Fri Aug 12, 2011 1:53 am

Re: What to do with extra loan money

Postby laxbrah420 » Tue Apr 17, 2012 1:47 pm

fixed cd isn't so good for emergencies...
just put it in a broad exposure etf. the stock market has historically gone up, you know.

User avatar
dingbat
Posts: 4976
Joined: Wed Jan 11, 2012 9:12 pm

Re: What to do with extra loan money

Postby dingbat » Tue Apr 17, 2012 1:59 pm

laxbrah420 wrote:fixed cd isn't so good for emergencies...
just put it in a broad exposure etf. the stock market has historically gone up, you know.

I sincerely hope you're joking

User avatar
lifestooquick
Posts: 1200
Joined: Wed Feb 17, 2010 3:13 pm

Re: What to do with extra loan money

Postby lifestooquick » Tue Apr 17, 2012 2:19 pm

At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back

User avatar
Tiago Splitter
Posts: 15475
Joined: Tue Jun 28, 2011 1:20 am

Re: What to do with extra loan money

Postby Tiago Splitter » Tue Apr 17, 2012 2:27 pm

lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back


You don't get the origination fee back right?

User avatar
lifestooquick
Posts: 1200
Joined: Wed Feb 17, 2010 3:13 pm

Re: What to do with extra loan money

Postby lifestooquick » Tue Apr 17, 2012 2:39 pm

Tiago Splitter wrote:
lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back


You don't get the origination fee back right?

Doubtful. I didn't do this so I don't know how it works for sure, just sharing what our Financial Aid office said about this.

User avatar
dingbat
Posts: 4976
Joined: Wed Jan 11, 2012 9:12 pm

Re: What to do with extra loan money

Postby dingbat » Tue Apr 17, 2012 3:08 pm

lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back

Rather than that, reduce the amount you borrow the following year

User avatar
Ded Precedent
Posts: 767
Joined: Thu Mar 08, 2012 11:26 pm

Re: What to do with extra loan money

Postby Ded Precedent » Tue Apr 17, 2012 11:50 pm

I'll probably just put it in an index fund.




Return to “Financial Aid”

Who is online

Users browsing this forum: No registered users and 2 guests