First time getting loans. Quick question.

[Podiatry1]

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Hi. I am going to be entering podiatry school in the near future. I am VERY fortunate that I have a family which will be covering the tab + rent (I thank them every day) however, I do need to take out loans for living expenses, books, food etc.

I was planning on taking out $15k this year.

My question is, lets say I spend very frugally (which I plan on doing... little eating out etc) and do not spend all $15k in the year.... can I pay it back right away? Does it just transfer over for the next year? What would be the best way to go about doing this so I get as little interest possible on the $. I know to accept all of the subsidized aid so no interest acquires etc. However what about unsubsidized? Should I pay back what I dont spend immediately each year?

Thanks kindly for any advice.

 

[Igor4sugry]

First point: starting in July 2012 Subsidized Stafford Loans are gone, that occurred with passage of new bill in congress.

Second point:
I suggest to take out as much as you think you may need for living expenses. Then during the year stick to your budget. You can easily return any unsued funds at the end of the year via the website of Direct Loan Program.

Actually, you can return this money at any time you want (maybe at the end of 1st semester). What will hit you is the loan origination fee. But its better to have enough money for living expenses than to run out say during month 10. Also, make sure that you budget for a 12 month period (because the schools send you a budget for a 10 month period, for some reason they don't count summer months).

 

[Podiatry1]

First point: starting in July 2012 Subsidized Stafford Loans are gone, that occurred with passage of new bill in congress.

Second point:
I suggest to take out as much as you think you may need for living expenses. Then during the year stick to your budget. You can easily return any unsued funds at the end of the year via the website of Direct Loan Program.

Actually, you can return this money at any time you want (maybe at the end of 1st semester). What will hit you is the loan origination fee. But its better to have enough money for living expenses than to run out say during month 10. Also, make sure that you budget for a 12 month period (because the schools send you a budget for a 10 month period, for some reason they don't count summer months).

Thanks for your help. Wow that sucks about the stafford loans being gone. Thanks congress.

 

[The White Coat Investor]

Alternatively, you could just take out less next year.