Personal Finance on Sidechat | I paid for my first semester of college out of pocket & have about $15k leftover saved. I live alone & need to work while in school. The remaining of my tuition is $7k,that I pay spaced out per semester. Should I get loans for it or pay out of pocket?

Sidechat

Download

Join communities on Sidechat Download

Personal Finance 10w

I paid for my first semester of college out of pocket & have about $15k leftover saved. I live alone & need to work while in school. The remaining of my tuition is $7k,that I pay spaced out per semester. Should I get loans for it or pay out of pocket?

Anonymous 10w

If I got loans, it wouldn’t accrue interest until after I graduate. So I would intend to pay them off while in school & maybe get an additional $2k from my mom.

Anonymous 10w

It sounds smart just be wary of which lender.. and you can pay it, I did tht but it was wake tech nothing too expensive

Anonymous 10w

I would get loans and pay off and build credit

Anonymous 9w

Do you live on campus or rent? If you’re not renting I would take the e-fund down to 8k and just pay off the semester out of pocket. The more you can pay now, the less interest it accrues. The only caviat to that is financial aid which might give you some good loan rates, compared to private. It’s typically only a % a quarter so might be worth it to take out a bigger loan now, if it helps you pay more out of pocket later.

Anonymous

#2 10w

That sounds like a good idea

Anonymous

OP 10w

In general, it is valuable to have money in your possession for a longer amount of time, so even if you treat the loan as just delaying the payment until you graduate, you’d still be better off from putting in into a savings acc or investing or smth

Anonymous

#2 10w

Oh yes building credit is always good

Anonymous

OP 9w

Put your money in a HYSA for now to be safest. Or you can invest in an index fund since the S&P500 has returns above typical loan interest rates (not fully risk free). Ofc it depends of the loan interest rate where putting it might be best, but def take a loan since it’s subsidized

Anonymous

#2 9w

Do NOT do this. Read your loan, often any payment activates ongoing payments while you’re in school.

Anonymous

#5 9w

They said it wouldn’t accrue interest until after graduation

Anonymous

#4 9w

Depends. A lot accrue interest, but don’t force you to pay down that interest until you graduate. One of my friends is doing a Ph.D. And has Insaine loans cuz they accrued interest for like 10 years that she didn’t need to pay cuz she was “in school”