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
Let's see. You have $10,000 left at the start of summer (3 months before next disbursement). You originally planned on taking out $70k next year.
A) Pay $10,000 back, and save $197.50 in accrued interest. Then take out the full $70k and pay $1750 in origination fees (2.5%)
B) not pay it back and only take out an additional $60k, paying $1500 in origination fees
Which strategy is most economical?