So I'm going to law school on the VAs dime so I'm thinking of buying a house near the school/where I want to practice.
It looks like we are going to be approved for a smaller mortgage than we had hoped as lenders do not consider the housing allowance from the VA to be income, requiring us to potentially put down a much larger down payment where normally we'd have no requirement for any down payment.
I was wondering if it would be possible to take out a student loan after we get the mortgage, for say 50K dollars, and just keep it in an emergency account as our emergency funds could largely go towards the down payment on the house. In the mean time my wife would build our savings back up over the duration of law school. Once we had that 50K back in the bank I'd just pay the loan back off with itself, but that way we'd have emergency money in the mean time.
Would having a mortgage effect my ability to get a student loan? Are there any loans that if I kept 50K in the bank and paid it off before/within a certain time of graduation that would cost me nothing/no more than the 1% interest they'd accrue sitting in savings?
Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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- Tiago Splitter
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You don't need that much emergency money. If something happens you can always apply for a student loan at that time. A mortgage won't have any impact on that. Generally you can return student loans within I believe 120 days to avoid the associated fees and interest.
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Tiago Splitter wrote:You don't need that much emergency money. If something happens you can always apply for a student loan at that time. A mortgage won't have any impact on that. Generally you can return student loans within I believe 120 days to avoid the associated fees and interest.
Last I checked (early 2014), it's actually 60 days.
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