after loan disbursement

[dfk]

hey all, i just found out today that i was approved for my loan and disbursement will be sometime around august 1st.. it's a rather large amount and i was just wondering what others have done/will do with this money. should i add it to my checking account? or put it into a savings account to help offset my apr? i may run into a problem when i file next yr should i have to claim it.. or just cash it and keep a fat wad of rolled-up hundreds in my pocket? "why yes, it IS a large wad of money in my pants" - (bad humor, i know)

a friend also just told me i should put it into a money market, make interest, and withdraw as needed-

anyway, your thoughts appreciated

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[mshheaddoc]

File next year and have to claim it? Its not income, its a loan. You don't claim loans (unless they are mortgages/home equity and that is only for interest rebates)

With our disbursements we have an account at ING which gets about 4-5% right now (can't remember) and we put the bulk of the money in this account. Have enough funds on hand then withdrawl a few days out when we know we're starting to get below a certain amount. (say $2K) I feel if people did this you might get $20 a month just from interest. As a single med student (which I'm assuming that you are) you won't have much income (if any) and won't be paying taxes on that interest as it may only amount to say $200 or so but its money you didn't have before hand.

I've heard of some who invest their loan money, but I would suggest savings accounts with high interest rate before safe short-term investments. But if you know the investing game then you want to maximize your efforts go for it.

But PLEASE just don't let like $15K sit in your checking account making no money off of it. You're giving your bank this money to use for free. Make them work for it!!!