# Student Loans...I am Ignorant.



## LadyO.W.BernieBro (Sep 4, 2010)

Random question.

The people at my school's financial aid office are weird so l'll ask y'all.

Are you allowed to request a loan for semesters when you don't need one?

I am usually covered by Pell grants but just had to request a loan for summer, l usually don't get refunds anyway so l really don't mind owing if it means l can put a little money away.

Will l be able to request an additional loan for fall even though my books and tuition will be covered by financial aid?


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## Fleetfoot (May 9, 2011)

Probably not a student loan, unless you need housing. But to be honest I'm not 100% sure. It might explain it on the FAFSA website?


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## wiarumas (Aug 27, 2010)

Why would you want to borrow money at a high interest rate (even if it was low relatively low at 4%) to save in an account that won't accrue more than 1% in interest (I think a good rate for a savings account is around 0.5% at the moment). You would be subjecting yourself to losing money every month even though you perceived it as having "money put away." Like buying a car and never driving it until it rusts away.

If its an emergency fund that you will most likely not use, it would make more financial sense to open a 0% interest credit card for 12 months in case something comes up. That will give you plenty of time to pay things off with summer jobs or borrowing extra against your student loans with a purpose.


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## LadyO.W.BernieBro (Sep 4, 2010)

wiarumas said:


> Why would you want to borrow money at a high interest rate (even if it was low relatively low at 4%) to save in an account that won't accrue more than 1% in interest (I think a good rate for a savings account is around 0.5% at the moment). You would be subjecting yourself to losing money every month even though you perceived it as having "money put away." Like buying a car and never driving it until it rusts away.
> 
> If its an emergency fund that you will most likely not use, it would make more financial sense to open a 0% interest credit card for 12 months in case something comes up. That will give you plenty of time to pay things off with summer jobs or borrowing extra against your student loans with a purpose.


because the government pays the interest on subsidized loans. And my credit situation is uh...yeah.

Anyway l don 't think i'll be able to find out without asking them so i'll try again.


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## wiarumas (Aug 27, 2010)

MortimerVonKraus said:


> because the government pays the interest on subsidized loans. And my credit situation is uh...yeah.
> 
> Anyway l don 't think i'll be able to find out without asking them so i'll try again.


The government pays the interest only while you are in school. You'll be paying interest to have that savings account for the next 10 or 20 years if you don't pay it off in full prior to graduation.


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## LadyO.W.BernieBro (Sep 4, 2010)

wiarumas said:


> The government pays the interest only while you are in school. You'll be paying interest to have that savings account for the next 10 or 20 years if you don't pay it off in full prior to graduation.


l would be worried but l go to a college that's sort of like a CC, it's not technically but it's very cheap. And l'm pretty much at a spot in life where l'm going to have to screw myself over a little bit to get ahead. l don't have family as an option or anything like that.

*shrug* I'm not aiming for the ideal situation here, l'm just trying to move out of state.


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## Dylio (Jul 4, 2011)

You can apply for a line of credit at your bank.


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