Because of the grad assistant position ive been given i no longer need 2,000 dollars of the loan I am eligible for. My question is should i still get the money and try to invest it or should i just reject that portion of my financial aid. I already owe a good bit and i want to get a leg up on paying some of it back. Also I need to know about how lenient they are about paying the loans back. The information that ive found says that only under special circumstances will they let you pay back for more than 10 years. Im definitely gonna need more time than that. Surely somebody has experience with this.
I’m in a similar situation.
One thing I would ask is how much higher interest debt do you have, like credit cards? If you do, take out your student loan (low interest) and pay it off.
Otherwise, I would look at all of my debt, the percentages, the pay off times, and figure what should be paid first so that you don’t get raped in the long term by high interest rates…
goldberg - I just graduated and have loans too. I consolidated and man, it makes life so much easier. You get a low interest rate for the life of your loan. Since you will be a teacher, you may receive a special exemption. You can always choose the Extended plan, which is 15 years I believe.
As for the $2000, I would just take it. I had the same “problem” senior year, and I just accepted the $2000. You can always pay off your current interest accrued or put it into an IRA or something like that.
Or you could buy a steel cup with a built in ice bucket because I know your nuts are hurting.
take the money. they practically give it to you for free. if you have other debt at higher rates (credit cards) pay that off. No where else are you going to get money that cheap… I did the same thing during the tech boom, got out at the right time and when I graduated, I wrote a check for $23,000 for the loans and rode off into the sunset with another $39,000.
Also, most plans put you on plans that as the years progress, you pay more and you’re not forced to pay a huge amount every month right away. If it’s too high an amount, tell them you can’t afford it.
Lastly, consolidate your student loans if you have multiple from different vendors and LOCK in a rate ASAP…
hope this helps…
ada
Im gonna be looking at 60000 dollars by the time i get out. This after 7 years of college. Luckily i will have a masters degree when i get out and i wont be going to school anymore. I did the debt calculator the other day on the stafford load website and i was looking at a 500 dollar a month payment for quite a few years. What kind of interest rates are yall getting?
$60k is nothing Goldberg…
In a few years you gonna be Mr Biggins at westside. You will be doing a 2500# in 3 lift meets, and sponsors will be beating down your doors as you approach 3000#.
Either that or you will be a rich schoolteacher who happens to be larger than any other PE teachers out there…
Right now, the year’s interest rate is right around 3%. Consolidate now. Never again will rates be this low.
60,000 isn’t that bad man. I know tons of med students who are easily twice that. Of course, they’re not going to be teachers at the end of all of their debt either 
Teachers are what make the world go around, and that’s why I think there may be a special repayment plan for teachers. That or a partial reimbursement.
Take it. You’ll never get access to money that cheap again.
Ok here is what i think im gonna do. Im gonna take the 2000 and all the money i make this year and invest it. Since the consolidated rate is much lower, i think i can help myself by investing it. The average mutual fund makes around 8% per year from what ive figured so far. That should help some.
Where is this world coming too? Let me give some good advise to you Goldberg for once. Don’t take it your already 60,000 in the hole! Add another 5,000- 8,000 because thats what you’ll be in the hole for w/ intreast by the way. Do you want to spend the rest of your life owing some bank even if you are investing the 2,000.
Oh well it doesn’t look like you are going to listen to me;).
In Health,
Silas C.