Borrowing SO's Stafford Loans

(housing, friendships, future exams, all things 2012)
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Artvark1
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Borrowing SO's Stafford Loans

Postby Artvark1 » Wed Apr 29, 2009 9:54 am

I was thinking about this in the shower this morning and thought I would run it by you guys to judge the morality/risk involved:

1) I will be attending NYU Law and will need to borrow the entire cost of attendance
2) My girlfriend will be attending Seton Hall and her parents will be paying her tuition, but she will be paying her room and board.
3) She is eligible to take out stafford loans to pay her cost of attendence, but because her parents are paying the tuition she is not in need of the entirety of the loans.
4) The relationship is serious, and engagement is most likely around the corner

Would it be acceptable for her to accept the loans that she does not really need, assuming that we will soon be married, and lend me the low-interest money she is receiving so that I don't have to take out as large of a GradPLUS (high-interest) loan. Is it legal/possible? Advisable? Thanks!

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Artvark1
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Re: Borrowing SO's Stafford Loans

Postby Artvark1 » Wed Apr 29, 2009 11:25 am

Anybody have any thoughts?

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frank_the_tank
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Re: Borrowing SO's Stafford Loans

Postby frank_the_tank » Wed Apr 29, 2009 11:26 am

Don't do it.

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cougarlive
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Re: Borrowing SO's Stafford Loans

Postby cougarlive » Wed Apr 29, 2009 11:30 am

Yeah... you shouldn't even do it if you were engaged. The last thing you need is some major money issues costing you your relationship. Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.

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JuryDueT1000
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Re: Borrowing SO's Stafford Loans

Postby JuryDueT1000 » Wed Apr 29, 2009 11:38 am

Artvark1 wrote:Anybody have any thoughts?


I think she would be stupid to do that, engagement or not.

Don't be upset or even suprised if she decides not to do that for you.

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Artvark1
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Re: Borrowing SO's Stafford Loans

Postby Artvark1 » Wed Apr 29, 2009 11:40 am

cougarlive wrote: Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.


Not sure I follow here... Care to explain?

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frank_the_tank
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Re: Borrowing SO's Stafford Loans

Postby frank_the_tank » Wed Apr 29, 2009 11:40 am

Also, if her parents were planning on paying the tuition directly to the school they would have to be in on it as well since Stafford loans have the tuition taken out of them before being dispersed.

That will make you look like a huge chump to her daddy.

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Jones, Dow
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Re: Borrowing SO's Stafford Loans

Postby Jones, Dow » Wed Apr 29, 2009 11:48 am

is your gf even on board with this? i have to think she'd be pretty crazy to do something like this. the risk for her is huge.

KentuckyFried
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Re: Borrowing SO's Stafford Loans

Postby KentuckyFried » Wed Apr 29, 2009 11:50 am

if she's cool with it go ahead.

KentuckyFried
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Re: Borrowing SO's Stafford Loans

Postby KentuckyFried » Wed Apr 29, 2009 11:52 am

oh yeah, and buy her something nice with the money you saved

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Justice4All
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Re: Borrowing SO's Stafford Loans

Postby Justice4All » Wed Apr 29, 2009 11:57 am

Artvark1 wrote:Anybody have any thoughts?


If she won't let you do it then you can't do it. If she will let you do it then you need to find a smarter girlfriend.

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cougarlive
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Re: Borrowing SO's Stafford Loans

Postby cougarlive » Wed Apr 29, 2009 12:00 pm

Artvark1 wrote:
cougarlive wrote: Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.


Not sure I follow here... Care to explain?



Sure. Assuming you are both combining your assets and liabilities (debt) when married and combining income:

If you graduate with -100,000 and she graduates with 0 (as opposed to -60,000 if she had to take out and use the stafford loans for herself), your "combined married" debt will be 100,000 vs. 160,000. You can both use your combined income to pay down your 100,000 vs. having 2 loans to pay off. i.e. You will pay down the 100,000 faster. Hope that makes sense.

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rayiner
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Re: Borrowing SO's Stafford Loans

Postby rayiner » Wed Apr 29, 2009 12:00 pm

Justice4All wrote:
Artvark1 wrote:Anybody have any thoughts?


If she won't let you do it then you can't do it. If she will let you do it then you need to find a smarter girlfriend.


+1.

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rayiner
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Re: Borrowing SO's Stafford Loans

Postby rayiner » Wed Apr 29, 2009 12:01 pm

cougarlive wrote:
Artvark1 wrote:
cougarlive wrote: Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.


Not sure I follow here... Care to explain?



Sure. Assuming you are both combining your assets and liabilities (debt) when married and combining income:

If you graduate with -100,000 and she graduates with 0 (as opposed to -60,000 if she had to take out and use the stafford loans for herself), your "combined married" debt will be 100,000 vs. 160,000. You can both use your combined income to pay down your 100,000 vs. having 2 loans to pay off. i.e. You will pay down the 100,000 faster. Hope that makes sense.


Math fail dude.

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JuryDueT1000
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Re: Borrowing SO's Stafford Loans

Postby JuryDueT1000 » Wed Apr 29, 2009 12:07 pm

Justice4All wrote:
Artvark1 wrote:Anybody have any thoughts?


If she won't let you do it then you can't do it. If she will let you do it then you need to find a smarter girlfriend.


Seriously.

You see how everybody is stressing out of their minds about loans and debt. Why would you do that to her, especially when she has such a sweet deal? Would you want her to ask that of you? Like you don't have enough to worry about without adding that to the plate.

Forget it, if you want to marry this girl, then you need to think a little more about her needs and what's good for her. And that doesn't include a boyfriend looking to get cheaper loans with her neck on the line.

uknowme
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Re: Borrowing SO's Stafford Loans

Postby uknowme » Wed Apr 29, 2009 12:12 pm

cougarlive wrote:
Artvark1 wrote:
cougarlive wrote: Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.


Not sure I follow here... Care to explain?



Sure. Assuming you are both combining your assets and liabilities (debt) when married and combining income:

If you graduate with -100,000 and she graduates with 0 (as opposed to -60,000 if she had to take out and use the stafford loans for herself), your "combined married" debt will be 100,000 vs. 160,000. You can both use your combined income to pay down your 100,000 vs. having 2 loans to pay off. i.e. You will pay down the 100,000 faster. Hope that makes sense.

I think what the OP is saying is take out 160,000 all by himself vs. 100,000 on his own and 60,000 (at a lower interest rate, as these are stafford loans and not gradplus) through his so, if this makes any sense.

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Justice4All
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Re: Borrowing SO's Stafford Loans

Postby Justice4All » Wed Apr 29, 2009 12:13 pm

JuryDueT1000 wrote:
Justice4All wrote:
Artvark1 wrote:Anybody have any thoughts?


If she won't let you do it then you can't do it. If she will let you do it then you need to find a smarter girlfriend.


Seriously.

You see how everybody is stressing out of their minds about loans and debt. Why would you do that to her, especially when she has such a sweet deal? Would you want her to ask that of you? Like you don't have enough to worry about without adding that to the plate.

Forget it, if you want to marry this girl, then you need to think a little more about her needs and what's good for her. And that doesn't include a boyfriend looking to get cheaper loans with her neck on the line.


Well said. You want to risk everything just to save a couple of percentage points on your loans?

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cougarlive
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Re: Borrowing SO's Stafford Loans

Postby cougarlive » Wed Apr 29, 2009 12:24 pm

rayiner wrote:
cougarlive wrote:
Artvark1 wrote:
cougarlive wrote: Plus, if you both do end up getting married, her lack of debt will help you both pay your loans off earlier.


Not sure I follow here... Care to explain?



Sure. Assuming you are both combining your assets and liabilities (debt) when married and combining income:

If you graduate with -100,000 and she graduates with 0 (as opposed to -60,000 if she had to take out and use the stafford loans for herself), your "combined married" debt will be 100,000 vs. 160,000. You can both use your combined income to pay down your 100,000 vs. having 2 loans to pay off. i.e. You will pay down the 100,000 faster. Hope that makes sense.


Math fail dude.


Oops. I see what you are saying. I was trying to get this out before I put my daughter down to sleep--but the same principle still applies. Have the OP barrow all the money he will need for LS (as has been discussed, this can lead to some serious problems). Don't have the SO take out any unnecessary loans (even if they are at a lower interest rate). Once they are both graduated and married, THEN they can aggressively pay down his loans which are at a higher interest rate (Gradplus vs. her Stafford).

Bottom line, if they do get married--her lack of debt will put them in a position to aggressively pay down his high interest loans.

Plus, lets not forget to mention the absolute WORST CASE SCENARIO. What if the OP does get his SO to take out stafford loans which he uses and then they break up (not saying this will happen)---she is left in the red and the OP will have to use most of his income to pay her loans back ASAP (at least that would be the right thing to do).




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