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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.

don't...take...the full...amount

You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.

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.

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.

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.

^ lulz

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?

Throw it into a Roth and pray you can beat the Stafford/GradPlus rates. I'm assuming the origination fee is a sunk cost.

If an emergency comes up you could also just use a credit card

I used mine to buy a timeshare in Maui

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.

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.

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?

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....

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.

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.

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.

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

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

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?

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.

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

I'll probably just put it in an index fund.