How Much Money Should My Fiancee Take Out?

[wholeinone04]

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My fiancee is starting school this Fall and we're trying to decide how much she should take out. I think she'll need about 50k a year to cover tuition/books/room and board. I'll be able to cover everything else.

So she's going to need to take out 50k in loans, she was offered 45k in unsubsidized loans at 6.8% with a loan origination fee of 1.05% and 20k in Grad Plus loans at 7.9% with a loan origination fee of 4.2%.

I've just started reviewing everything today so it's still a bit confusing but from my understanding, aren't these loans exactly the same? You can pay off the interest or let it accrue and capitalize? Seems like it makes sense to max out unsubsidized loans first, then go to grad plus loans right?

 

[Mass Effect]

My fiancee is starting school this Fall and we're trying to decide how much she should take out. I think she'll need about 50k a year to cover tuition/books/room and board. I'll be able to cover everything else.

So she's going to need to take out 50k in loans, she was offered 45k in unsubsidized loans at 6.8% with a loan origination fee of 1.05% and 20k in Grad Plus loans at 7.9% with a loan origination fee of 4.2%.

I've just started reviewing everything today so it's still a bit confusing but from my understanding, aren't these loans exactly the same? You can pay off the interest or let it accrue and capitalize? Seems like it makes sense to max out unsubsidized loans first, then go to grad plus loans right?

What's left besides tuition/books/room and board? Anyway, yes, max out the unsubsidized loans first and then do the Grad Plus thing.

 

[sinombre]

Seems like it makes sense to max out unsubsidized loans first, then go to grad plus loans right?

Isn't this the only way you can do it?

 

[dsoz]

My fiancee is starting school this Fall and we're trying to decide how much she should take out. I think she'll need about 50k a year to cover tuition/books/room and board. I'll be able to cover everything else.

So she's going to need to take out 50k in loans, she was offered 45k in unsubsidized loans at 6.8% with a loan origination fee of 1.05% and 20k in Grad Plus loans at 7.9% with a loan origination fee of 4.2%.

I've just started reviewing everything today so it's still a bit confusing but from my understanding, aren't these loans exactly the same? You can pay off the interest or let it accrue and capitalize? Seems like it makes sense to max out unsubsidized loans first, then go to grad plus loans right?

Did she fill out a FAFSA? The school should have sent you financial aid packet that outlines everything for your expected budget. Usually the schools are generous if you live frugally. Low cost rent, not eating out extravagantly. Older model, low cost, car. Etc. You will not be living like a doctor, you will be living like a student. Not Top Raman every night, but not filet mignon either.

The bottom line. You should take out the cost of attendance, or less if you can swing it. The less you borrow now, the less you pay back (with compound interest) later.

dsoz