Stafford Loans or Pay From Savings?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
Necho2

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Joined: Mon Mar 09, 2015 11:28 pm

Stafford Loans or Pay From Savings?

Postby Necho2 » Tue Jun 28, 2016 11:23 am

So I'm a 0L lucky enough to be going into law school with a full ride and a 15k living stipend. I'm allowed to take out about 12k in Stafford loans (and I assume roughly the same for 2L and 3L), and I also have roughly 20k in savings and investments right now.

Ideally I'd like to work in a regulatory agency for the government after school, and while I know that's not the most likely outcome, I'm at a school (CCN) where I think I have an excellent shot at working in the same area at large corporate firm assuming the government stuff doesn't pan out. Given those two outcomes, and the relative advantages of Stafford loans over Grad Plus, I should probably opt to borrow the full amount, and even if I make money in the summers, throw that into investments instead, right? Not sure if I'm missing anything about outcomes, but it feels like given low origination and interest rates for Stafford, not much of a cost to it, and if I do end up in an LRAP job I can keep that money and not even worry about that small debt burden afterwards.

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Tiago Splitter

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Joined: Tue Jun 28, 2011 1:20 am

Re: Stafford Loans or Pay From Savings?

Postby Tiago Splitter » Tue Jun 28, 2016 1:59 pm

Yeah I'd take Staffords. If you work in government for ten years you may not have to pay much if anything back. If not, you can pay the debt off pretty quickly.

I would also post in the NBA thread.

Necho2

Bronze
Posts: 187
Joined: Mon Mar 09, 2015 11:28 pm

Re: Stafford Loans or Pay From Savings?

Postby Necho2 » Tue Jun 28, 2016 2:14 pm

Thanks! And yeah, gotta shake off the post-Finals loss malaise and get back into the fray...



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