What to do with extra loan money Forum

[Ded Precedent]

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.

[hichvichwoh]

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

[071816]

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

[Ded Precedent]

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.

[gaud]

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.

[Ded Precedent]

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]

[gaud]

^ lulz

[071816]

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?

[Tiago Splitter]

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

[gaud]

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

[BlueDiamond]

I used mine to buy a timeshare in Maui

[Ded Precedent]

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.

[MrPapagiorgio]

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]

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?

[dingbat]

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]

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.

[dingbat]

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.

[laxbrah420]

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.

[dingbat]

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

[lifestooquick]

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

[Tiago Splitter]

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?

[lifestooquick]

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.

[dingbat]

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

[Ded Precedent]

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