FAFSA Loan Amount

[gator09]

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This might seem like a dumb question but I have never taken loans out so I'm unsure what to do.

Is it better to take out the maximum amount of loan money that can be awarded during first few years and if any is left over take out less money 4th year or is it better to take out about exactly as much as you need all 4 years?

I guess what I am trying to ask is, does interest start accumulating after the first year or does it start accumulating after you are completely finished?

 

[jGpharmD]

depends on the type of loan:

subsidized loans do not charge interest to you until 6 months after you are done with classes.

unsubsidized loans begin charging interest as soon as you take them out.

not sure as to whether or not you sure take your full reward or not... i'm def. not taking any unsubsidized

 

[sharksRfriends]

Well, you don't want to not be able to pay your rent at the end of the year so you might want to take the max the first year even though it will accrue a lot of interest. And unless you have lots of money saved up you'll have to take out subsized and unsubsidized.

 

[gator09]

It's scary thinking about how much debt I am about to take on as I'm going to be taking out near the maximum allowed.😱 Is the Federal Graduate PLUS loan subsidized?

 

[FarscapeGirl]

One thing to remember with loans is that most likely, you won't be getting any during the summer. If you can live at home and don't have to worry about rent, that might not be a problem. But even if you have an internship, you only get paid if you're working. You might not be scheduled that much, you may want to visit family, etc., and these will all cut down on your income.

Personally, unless it's way over, I'd take out the full amount, especially at first. They usually don't give you too much in loans. You can always keep the money in an interest-accumulating account, and if you have a bit after the first year take out less later.

Also, I know for my school we do rotations the fourth year. These are not only unpaid, I also won't be able to work as much. So money will definitely be tighter then!

 

[sharksRfriends]

It's scary thinking about how much debt I am about to take on as I'm going to be taking out near the maximum allowed.😱 Is the Federal Graduate PLUS loan subsidized?

Grad Plus loans are unsubsidized.

 

[rxlea]

I am taking out the max (~42000) for the first year. I imagine I will have some left over, but since I really don't know how much I will be needing and I am unfamiliar with budgeting student loans, I figure the max for the first year and less for subsequent years is a good idea.

EDIT: Have any of you paid a number of month's of rent in advance? Like, say, pay your rent through the first school year? I think that might help me to budget my finances better. I am looking @ 1400 a month for rent but I have my partner's income to help.

I am hoping that utilities and transportation expenses are not outrageous. I am sorta nervous about it.

 

[FarscapeGirl]

I am taking out the max (~42000) for the first year. I imagine I will have some left over, but since I really don't know how much I will be needing and I am unfamiliar with budgeting student loans, I figure the max for the first year and less for subsequent years is a good idea.

EDIT: Have any of you paid a number of month's of rent in advance? Like, say, pay your rent through the first school year? I think that might help me to budget my finances better. I am looking @ 1400 a month for rent but I have my partner's income to help.

I am hoping that utilities and transportation expenses are not outrageous. I am sorta nervous about it.

I wouldn't pay rent in advance. If you're worried you'd spend the money, maybe you can take out what you need for it from that quarter's/semester's payout and put it in an account that you won't touch except for your part of the rent?

As for utilities, usually a good landlord will have some idea. You can ask future classmates (do you know any on Facebook yet?) about utilities and transportation costs, too.

 

[gator09]

depends on the type of loan:

subsidized loans do not charge interest to you until 6 months after you are done with classes.

unsubsidized loans begin charging interest as soon as you take them out.

not sure as to whether or not you sure take your full reward or not... i'm def. not taking any unsubsidized

For the Unsubsidized Loans--say for instance the interest rate is 6.8%--Is the interest rate charged on a "per year" basis?

 

[BelleMD2B]

I am taking out the max (~42000) for the first year. I imagine I will have some left over, but since I really don't know how much I will be needing and I am unfamiliar with budgeting student loans, I figure the max for the first year and less for subsequent years is a good idea.

EDIT: Have any of you paid a number of month's of rent in advance? Like, say, pay your rent through the first school year? I think that might help me to budget my finances better. I am looking @ 1400 a month for rent but I have my partner's income to help.

I am hoping that utilities and transportation expenses are not outrageous. I am sorta nervous about it.

We actually plan to put the "rent allocated" portion of the loans towards our mortgage, and pay a large chunk "upfront" to reduce principal. A little unorthodox, but doing this for several years in a row will drastically reduce the life of the mortgage.

As far as rent, I would only do it if the place is almost perfect - new, updated, renovated. If you do this, just make sure to have something in writing regarding the length of time it applies to. In NY, there are all sorts of pre-war buildings. Beautiful, but not the sort of places I would pay all rent up front - in case there are maintenance issues.