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

Re: What to do with extra loan money

Postby dingbat » Mon Apr 23, 2012 8:50 pm

luuma wrote:
dingbat 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

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



Interest %

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.

You can:
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?

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bmore_md
Posts: 185
Joined: Tue Jul 05, 2011 9:52 pm

Re: What to do with extra loan money

Postby bmore_md » Wed Apr 25, 2012 2:57 am

laxbrah420 wrote:you could also place a bridge jumper type bet --NFL home fav ML @ ~-1000 to cover the interest


This is TCR. Go to Vegas and throw money on some all-or-nothing sports bets.




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