Should I take out loans Forum

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 1:53 am

A little background. I'm getting a special scholarship that will cover my tuition and living expenses at one of HYS. I have no need to take out loans or any other financial aid. But I was told by the schools Financial aid office that I could still apply for loan only grants up to the COA. So if tuition is say 50k and COA is 75K I can take out 25k in loans. I was wondering would it be wise to take out this 25k every year and put it into some type of interest bearing account or low risk mutual fund and then pay it back after graduation (keeping the interest for my self of course). Is this rational? Would it work? Is it illegal? Unethical? Please help.

Edit: I just ran the numbers and I would make approximately 3K by the time I graduate if I went the CD route.

MrPapagiorgio · Post by **MrPapagiorgio** » Wed Mar 16, 2011 1:58 am

Hmm. Interested to see what the responses are.

spets · Post by **spets** » Wed Mar 16, 2011 1:59 am

Wow, congrats

fatduck · Post by **fatduck** » Wed Mar 16, 2011 2:01 am

stake me at 2/4 and 3/6 NL, 50/50 with makeup

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 2:05 am

spets wrote:Wow, congrats

lol thanks. so what do you guys think I need responses? should I start a poll?

nshapkar · Post by **nshapkar** » Wed Mar 16, 2011 2:08 am

flame.

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 2:09 am

nshapkar wrote:flame.

why?

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 2:16 am

ok someone said no, can you give me your reasons. I think I'm actually looking for a reason not to do this. It seems like it could be wrong but I don't know what laws or moral code I would actually be breaking.

DMBFan · Post by **DMBFan** » Wed Mar 16, 2011 2:25 am

IMO: Take out all subsidized loans that you are eligible for. These do not accrue interest while you are in school. But unsubsidized and private loans do accrue interest while you are in school and I doubt they have an interest rate much lower than you could possibly get on a CD. Mutual funds maybe...but that's more like gambling than investing w/ just a 3 year time frame.

Moral/ethical issue.....I don't see one. If you're eligible for the loans, you have the right to use them as you see fit.

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 2:41 am

DMBFan wrote:IMO: Take out all subsidized loans that you are eligible for. These do not accrue interest while you are in school. But unsubsidized and private loans do accrue interest while you are in school and I doubt they have an interest rate much lower than you could possibly get on a CD. Mutual funds maybe...but that's more like gambling than investing w/ just a 3 year time frame.

Moral/ethical issue.....I don't see one. If you're eligible for the loans, you have the right to use them as you see fit.

Thanks man for some reason I was thinking loans are supposed to only be used because you need them, oh and thanks for the info about the difference in loans. I hadn't researched it so well because I knew I wouldn't have to take any out. Are Direct Graduate plus loans subsidized. I know I"m being lazy and I should look it up my self. which I will.

edit: found my answer thanks again man.

fatduck · Post by **fatduck** » Wed Mar 16, 2011 2:45 am

is your "special scholarship" of the special olympics variety?

flyingfish · Post by **flyingfish** » Wed Mar 16, 2011 2:50 am

fatduck wrote:is your "special scholarship" of the special olympics variety?

Actually the reason I made this name is because I wasn't sure if it was something I should be doing so I didn't want to be outed if it was unethical. Sorry I don't know as much as you, that's why I'm asking in this forum. There is no reason for name calling.

enron123 · Post by **enron123** » Wed Mar 16, 2011 11:38 am

I don't believe

thecilent · Post by **thecilent** » Wed Mar 16, 2011 11:53 am

Obvious flame guys. Come on now

incase2011 · Post by **incase2011** » Wed Mar 16, 2011 12:05 pm

It seems to me - as best it could seem to any 0L - that this amounts to fraud. Certainly, it's a misappropriation of funds. There should be stipulations inherent in any loan detailing the allotment of funds contingent upon their use for necessary educational expenses. Sounds like this fin. aid. person doesn't know what they're talking about. Although you could use the loans to pay for COA, and the special scholarships for special peoples money for investing, right? I would think that'd be safer - most scholarships don't have any stipulations, once granted.

fatduck · Post by **fatduck** » Wed Mar 16, 2011 12:08 pm

thecilent wrote:Obvious flame guys. Come on now

you realize only two people took this thread seriously

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