Americorp award- pay for law school directly or pay interest

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
anchris
Posts: 1
Joined: Wed Apr 17, 2013 12:39 am

Americorp award- pay for law school directly or pay interest

Postby anchris » Fri May 24, 2013 7:45 am

I have an americorp award of roughly 11,000 to use for educational purposes (however I have to pay taxes on this money). Should I use the money to directly pay for law school in small increments or should I use it to pay the interest on my loans while in school? Which seems like the better option? Thanks.

User avatar
jkpolk
Posts: 895
Joined: Thu Nov 10, 2011 10:44 am

Re: Americorp award- pay for law school directly or pay interest

Postby jkpolk » Fri May 24, 2013 9:13 am

anchris wrote:I have an americorp award of roughly 11,000 to use for educational purposes (however I have to pay taxes on this money). Should I use the money to directly pay for law school in small increments or should I use it to pay the interest on my loans while in school? Which seems like the better option? Thanks.


you should spend it on first semester tuition

User avatar
francesfarmer
Posts: 1409
Joined: Mon Sep 10, 2012 11:52 am

Re: Americorp award- pay for law school directly or pay interest

Postby francesfarmer » Fri May 24, 2013 9:42 am

polkij333 wrote:
anchris wrote:I have an americorp award of roughly 11,000 to use for educational purposes (however I have to pay taxes on this money). Should I use the money to directly pay for law school in small increments or should I use it to pay the interest on my loans while in school? Which seems like the better option? Thanks.


you should spend it on first semester tuition

+1. You will pay less in origination fees AND interest if you take out less money in loans to begin with. As far as taxes are concerned, since you are in Americorps I assume you won't make very much money this year so the tax consequences should be pretty negligible.




Return to “Financial Aid”

Who is online

Users browsing this forum: No registered users and 1 guest