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What to do with extra loan money
Posted: Mon Apr 16, 2012 4:13 pm
by Ded Precedent
I've decided to accept the full amount of my loan just to be on the safe side but between my scholarship and savings I think I'll have an extra 5k to 10k a year. It seems dumb to put that money in a savings account and let the unsubsidized portion whither away to interest and inflation. Any ideas on where to keep it where it's accessible if there's unforeseen expenses I haven't accounted for but won't make me feel like I'm flushing money down the toilet?
Thanks.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:22 pm
by hichvichwoh
don't...take...the full...amount
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:25 pm
by 071816
You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:25 pm
by Ded Precedent
hichvichwoh wrote:don't...take...the full...amount
I'm not taking out GRAD PLUS loans or anything. So I guess I'm not technically taking out the "full" amount. I'm just taking out 5k-10k more than what I think my expenses will be to be safe.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:33 pm
by gaud
chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
This and this:
You could always give back what you don't use.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:35 pm
by Ded Precedent
chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
I haven't finalized anything yet, I'm still trying to think this through. I didn't know I could request additional funds at any point although the idea of haggling mid semester to get more money kind of scares me.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:40 pm
by rad lulz
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:41 pm
by gaud
^ lulz
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:46 pm
by 071816
Ded Precedent wrote:chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
I haven't finalized anything yet, I'm still trying to think this through. I didn't know I could request additional funds at any point although the idea of haggling mid semester to get more money kind of scares me.
I'm genuinely curious, if you have a well-thought-out budget, what sorts of things would require you to need more emergency loan money mid semester?
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:47 pm
by Tiago Splitter
Throw it into a Roth and pray you can beat the Stafford/GradPlus rates. I'm assuming the origination fee is a sunk cost.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:48 pm
by gaud
If an emergency comes up you could also just use a credit card
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:51 pm
by BlueDiamond
I used mine to buy a timeshare in Maui
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:54 pm
by Ded Precedent
chimp wrote:I'm genuinely curious, if you have a well-thought-out budget, what sorts of things would require you to need more emergency loan money mid semester?
Emergency types of stuff. Like if my car breaks down or if I land a sweet summer gig that requires me to move (lol) and make two rent payments. Bail money or gambling binges. Just stuff like that.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 4:58 pm
by MrPapagiorgio
Hookers and blow brah. Get accustomed to that biglawl lifestyle from the get go so when you graduate, you can act like you've been there before.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 5:01 pm
by iowalum
chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
If anyone actually has experience with this - what kind of paperwork is needed/how long does it take?
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 10:45 pm
by dingbat
Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.
Or, if you want, I know some prime real estate for you to invest in....
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 11:00 pm
by iowalum
dingbat wrote:Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.
Or, if you want, I know some prime real estate for you to invest in....
I may be wrong, but isn't this illegal? If not I would consider an IRA, but I'm pretty sure I was told that you can't/shouldn't invest with your loan money.
Re: What to do with extra loan money
Posted: Mon Apr 16, 2012 11:07 pm
by dingbat
iowalum wrote:dingbat wrote:Put it into a fixed CD. No risk and at least some interest, but you'll be losing money on the loan.
Or, if you want, I know some prime real estate for you to invest in....
I may be wrong, but isn't this illegal? If not I would consider an IRA, but I'm pretty sure I was told that you can't/shouldn't invest with your loan money.
The real estate thing was a joke.
Investing student loan money isn't illegal, just stupid
As for sticking it into an IRA, there was a whole thread on paying down loans vs investing in an IRA explaining why it's a dumb move.
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 1:47 pm
by laxbrah420
fixed cd isn't so good for emergencies...
just put it in a broad exposure etf. the stock market has historically gone up, you know.
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 1:59 pm
by dingbat
laxbrah420 wrote:fixed cd isn't so good for emergencies...
just put it in a broad exposure etf. the stock market has historically gone up, you know.
I sincerely hope you're joking
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 2:19 pm
by lifestooquick
At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 2:27 pm
by Tiago Splitter
lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
You don't get the origination fee back right?
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 2:39 pm
by lifestooquick
Tiago Splitter wrote:lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
You don't get the origination fee back right?
Doubtful. I didn't do this so I don't know how it works for sure, just sharing what our Financial Aid office said about this.
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 3:08 pm
by dingbat
lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
Rather than that, reduce the amount you borrow the following year
Re: What to do with extra loan money
Posted: Tue Apr 17, 2012 11:50 pm
by Ded Precedent
I'll probably just put it in an index fund.