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Guest
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| Posted: Wed Oct 12, 2005 10:04 pm
Post subject: Uses for student loan |
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In the 1980s I heard of people buying cars, furs, stocks on student loans
and the colleges even encouraged it in order to get their loan quotas up.
Is it true that today the loan money only goes to the college?
What if the student has legitimate living expences like food & rent?
What does it mean when half the loan is "subsidised: and half not?
- = -
Vasos-Peter John Panagiotopoulos II, Columbia'81+, Bio$trategist
BachMozart ReaganQuayle EvrytanoKastorian
http://ourworld.compuserve.com/homepages/vjp2/vasos.htm
---{Nothing herein constitutes advice. Everything fully disclaimed.}---
[Homeland Security means private firearms not lazy obstructive guards]
[Fooey on GIU,{MS,X}Windows 4 Bimbos] [Cigar smoke belongs in veg food group]
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Steve Blank
Guest
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| Posted: Thu Oct 13, 2005 7:07 am
Post subject: Re: Uses for student loan |
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vjp2.at@at.BioStrategist.dot.dot.com wrote:
| Quote: | In the 1980s I heard of people buying cars, furs, stocks on student loans
and the colleges even encouraged it in order to get their loan quotas up.
Is it true that today the loan money only goes to the college?
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Student loans are disbursed to the college.
| Quote: |
What if the student has legitimate living expences like food & rent?
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The loans are first applied against the students college bills for
tuition, fees, plus room and board if living on campus. If there is a
credit balance after paying those, the excess is given to the student to
pay other expenses not billed directly by the school such as off-campus
housing, books, etc..
| Quote: |
What does it mean when half the loan is "subsidised: and half not?
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Loans like the Stafford and Perkins loans are subsidized by the
government if the student is eligible - meaning that Uncle Sam pays the
interest on them. If the student is not eligible for the full amount of
a Stafford subsidized loan then he can still receive the rest on an
unsubsidized basis - meaning that he is responsible for the interest on
that portion.
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761 |
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Steve Blank
Guest
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| Posted: Wed Oct 19, 2005 7:09 am
Post subject: Re: Uses for student loan |
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mickeylee1@aol.com wrote:
| Quote: | Does it make sense to start repaying the portion that you have to pay
back on before the student graduates from college?
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It depends on whether the loans are subsidized or not, and whether you
are done borrowing for college.
It wouldn't make sense if it's the subsidized interest-free Stafford or
Perkins loans. They aren't costing you anything until you leave school
and the grace period has ended.
If it's the unsubsidized Stafford it might make sense to reduce debt,
and it's interest, but only if you won't be borrowing anymore for
college. If you will be taking out further loans you'd be using up money
you could have used to pay for college and possibly make it necessary to
borrow even more to fill that gap.
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761
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Guest
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| Posted: Wed Oct 19, 2005 7:09 am
Post subject: Re: Uses for student loan |
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Does it make sense to start repaying the portion that you have to pay
back on before the student graduates from college? |
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