Best option for student loans?

[Jassi]

As soon as I can, I am going to book an appointment with a financial aid department employee from the grad school that I will be attending in about a month. Ideally, I would have liked to avoid the option of student loans but it doesn't look like I will be able to secure a job that pays enough and my parents are in a financial bind.

What are my choices? What should I ask the aid office? What should I avoid?

I am going for a EE MS (hopefully continuing to a PhD) so I don't count as one of the much needed professions (like nursing). Any help, advice and suggestions will be much appreciated.

PS. I have finished my BS without any loans (thanks to mom and pop) and I have almost zilch in savings and source of income at the moment On the plus side, I plan on living frugally and paying off the damned loans asap and I think I will be covered by my dad's health insurance (I am 21 and its lasts until I am 23).

PPS. I am also moving out for the first time (University is about 1.5 hrs drive away) so its a double whammy.

 

[vi edit]

I don't understand people's aversions to student loans. Really I don't.

It's about the cheapest possible money you can borrow, it's interest is tax deductible, and depending on the loan, the interest doesn't start compounding until you graduate.

That and you can space the repayment of the loans out over the course of 20 years if you want.

My wife has $80,000 in student loans. She consolidated, and only has to pay $250 a month with a graduated plan that eventually levels out to about $400 a month.

Because of her loans she secured a place in a profession that will net her $80,000 a year.

That's money well spent.

Do the math. Unless you are a talentless drama major, student loans are an investment, not a liability.

 

[Ns1]

well, if you're just applying now you're fuct. too late for fafsa/federal loans so that's pretty much your only shot

i went through sallie mae for their signature loans. prime + 2%, paid 6mo. after you leave school

 

[Banana]

vi is right. Just go for the student loans.

Or can you get a well-paid job now? You could work FT for a few years, live frugally, and save enough for grad school.

 

[amdskip]

You can't afford to not go to school in today's job market. It's pretty much a requirement.

 

[Yossarian]

don't worry about loans. do whatever you have to do to pay for school and the money will take care of itself.

 

[Jassi]

I filled out all of the FAFSA forms months ago just in case but this weekend I had a frank discussion with my parental units and they assured me that I would have to get loans. I took my undergraduate studies for granted (in the sense that I didn't have to pay most of my tuition due to their support and some scholarships) but it will be different for grad school now

Is it worth it to look for loan sources outside of the college or is the university financial aid office my best bet?

 

[Insomniak]

Originally posted by: vi_edit
I don't understand people's aversions to student loans. Really I don't.

It's about the cheapest possible money you can borrow, it's interest is tax deductible, and depending on the loan, the interest doesn't start compounding until you graduate.

That and you can space the repayment of the loans out over the course of 20 years if you want.

My wife has $80,000 in student loans. She consolidated, and only has to pay $250 a month with a graduated plan that eventually levels out to about $400 a month.

Because of her loans she secured a place in a profession that will net her $80,000 a year.

That's money well spent.

Do the math. Unless you are a talentless drama major, student loans are an investment, not a liability.

Oh God Yeah, education is like the best investment you can make. Mortgage your house, sell your car, take a loan, whatever you have to do, but if you're going to pour money into something, make it an education.

 

[kitkat22]

The school department is probably your best bet. There are two types the subsidized and unsubsidized. Subsidized is better because you don't accrue interest until after you graduate. A lot of the time the gov't/school will offer both if you choose them go for the subsidized stuff first then if you absolutely need it you can pull out unsubsidized later. My wife just graduated and we are paying back our loan at 3% interest.

 

[pray4mojo]

Originally posted by: vi_edit
I don't understand people's aversions to student loans. Really I don't.

It's about the cheapest possible money you can borrow, it's interest is tax deductible, and depending on the loan, the interest doesn't start compounding until you graduate.

That and you can space the repayment of the loans out over the course of 20 years if you want.

My wife has $80,000 in student loans. She consolidated, and only has to pay $250 a month with a graduated plan that eventually levels out to about $400 a month.

Because of her loans she secured a place in a profession that will net her $80,000 a year.

That's money well spent.

Do the math. Unless you are a talentless drama major, student loans are an investment, not a liability.

:thumbsup:

I'm entering my first year at UCSD and I'm not even hesitating about student loans.