Need some advice with college finances...

[DrumminBoy]

Here's the deal: I'm attending community college next year that costs $1250/sem, or $2500/year. The apartment I already have leased is going to cost $350/mo. or $4200/year. I've been offered stafford loans to pay for all the tuition, and my parents have $10k in an account for my use. What would be the best way of balancing loans, personal money, and my parent's money to pay for all of this? Keep in mind, I'll only be spending 1 or 2 years at CC, eventually going to a state university, so more loans will definitely be in my future. Any help would be great, I have to have this all figured out very soon.

 

[DAM]

use the 10k now.

reasons:

1. What if you decide to take a break from school if you spend more than 6 months away from school you will have to start paying your loans ASAP.
2. Interest rates may be lower by the time you decide to go to state school.

#2 is a risk however #1 is more of a reality.

 

[sixone]

Spend your own money first, then loans, then your parents' money. The weaning is the hardest part.

 

[Ns1]

what i would do (and i'm going to do)

is take the 10k, invest it in something for the long term, and borrow everything for school since interest rates are rock bottom

requires (alot) of reading and learning but if you do it right, i figure it'll be a good option

 

[Ness]

ermm... what is your income, current job situation and anticipated job situation once you start school?

What do your personal funds look like?

 

[Rumpltzer]

If you're going to community college anyway, why don't you live with your parents and put that $4K a year towards school? I thought this was the reason (aside from tuition expense) that people start out in JC/CC.

 

[DrumminBoy]

Originally posted by: Rumpltzer
If you're going to community college anyway, why don't you live with your parents and put that $4K a year towards school? I thought this was the reason (aside from tuition expense) that people start out in JC/CC.

I'll still be saving about $5k by not going to state college, its just I wanna get out of my town and experience some new things.

 

[Apathetic]

Make a budget for yourself. Figure out how much you can make per month during the school year and subtract things like gas, food, rent, entertainment, etc.

Then make a similar budget for the summer keeping in mind you'll probably make a lot more during the summer to help pay for the following school year.

Whatever your monthly income doesn't cover, use your 10k to help cover.

Remember, your classes will only get harder each year. This means you'll have to study more and spend more time working on complicated assignments so you'll have less time to work at a job and may therefore be making less money your senior year compared to your freshman year. Not to mention your rent may be much higher at a larger state school.

I completely disagree with DAM - don't suck the 10k dry your first year!! If you run into a problem and you have to leave school, you can use the 10k to make the montly payments or even pay off the loan in full right away if you absolutely have to. Money in the bank gives you options.

Dave

 

[vi edit]

Do you have a job? At $1250 a semester it should be no problem what so ever to pay for your schooling in full. Hell, even at $1250 a semester (a little over $300 a month) plus your $350 rent you should easily be able to cover that working even part time.

Don't pick up loans, and save that money in the account for when you need it.