Top Law Schools

This is probably really dumb but I just want to make sure I have this straight. At the beginning of each semester we'll be given $X amount in loans to cover that semester's COL and tuition. Plus we have to make sure that amount lasts us the full year, not just academic year, in case we don't get paid jobs our 1L summer. But if after all that we have loan money left over... can we just give it back? Return it/pay it off immediately so we don't accrue more interest on it? Or do most people wait until the three years are up and they have a full-time job lined up before taking any extra loan money and paying it back right away? Hopefully this makes sense/isn't too silly of a question. I didn't really have COL loans for undergrad so I'm not sure how it works!

You pay an origination fee, so I have to imagine that you'd often be better advised to hold onto extra money to reduce what you have to take out next year (assuming that the two loans are otherwise the same). Not sure, though.

mjb447 wrote:You pay an origination fee, so I have to imagine that you'd often be better advised to hold onto extra money to reduce what you have to take out next year (assuming that the two loans are otherwise the same). Not sure, though.

This is the right way to handle it. You'll accrue the same amount of interest no matter what, but you'll save on the origination fees by taking out less in loans.