D
deleted849476
DO Class of 2024 (woot woot), but I have a few questions about my finances. My situation:
I expect to take out just shy of $100k/year for school; this is on top of ~$15k debt I have across credit cards and a small Sallie Mae loan from undergrad. My credit limit is essentially maxed out, and the revolving utilization makes my credit score in the mid 600's. I'm very disciplined and this debt was mandatory, so not looking for retroactive advice please and thanks.
My questions:
--> When do loan funds usually disburse? Can I expect any $ at all before school starts to help me with new laptop/ipad/moving expenses?
--> When loans do disburse, will I just get a phat ~$30k refund check from my school for living expenses, or monthly checks, or one each semester? (My guess is all at once for the year due to the emphasis schools place on figuring out a budget early).
--> My minimum monthly CC payments are high and I'd prefer to dodge their high interest rates in the long term by basically paying them down with my loan money as soon as I can (say, the first year of med school, or if I can, and have enough money, all at once when I get my refund check). (Also, using my school's cost of attendance sheet, there are definite areas that I will save on that they list as being expensive, i.e. health insurance which I already have through my parents; yet, I'll still take out their calculated amount which is higher than the personal budget I came up with). So devil's advocate: Why shouldn't I do this (pay off CC's and Sallie Mae ASAP)? Of course I wouldn't want to run out of loan monies before the year's over, but suppose my budget is otherwise flawless and I'm disciplined enough to stick to it. PLUS, if I do pay them off, in the worst case scenario I run out of money, and I would have my entire high CC limit as a buffer.
--> What's going to happen to my credit score? For a moment I thought if I did the above that it would go way up because of the lower revolving utilization that lowered it in the first place, but then I remembered I'm going into 100's of thousands in debt, so maybe it doesn't matter "where" the debt is among CC's, student loans, etc. (Also I won't have any, or at least negligible, income, obviously).
--> Hear me out on this one... I have a decent moonlighting opportunity that would allow me to work as much or as little as I like, at my own schedule, throughout med school if I wanted. Why shouldn't I do it? I could ramp up on holidays and stop completely the week or so before exams or as needed to rest. People have other similar commitments in medical school like working out for an hour every day. Wouldn't it be OK for me to work even just 1 hour, 5 days/wk and make $20/day, ($600/mo, $7,200/year!!)? I could factor that out of my living expenses and save tons in interest down the line.
Thanks in advance.
I expect to take out just shy of $100k/year for school; this is on top of ~$15k debt I have across credit cards and a small Sallie Mae loan from undergrad. My credit limit is essentially maxed out, and the revolving utilization makes my credit score in the mid 600's. I'm very disciplined and this debt was mandatory, so not looking for retroactive advice please and thanks.
My questions:
--> When do loan funds usually disburse? Can I expect any $ at all before school starts to help me with new laptop/ipad/moving expenses?
--> When loans do disburse, will I just get a phat ~$30k refund check from my school for living expenses, or monthly checks, or one each semester? (My guess is all at once for the year due to the emphasis schools place on figuring out a budget early).
--> My minimum monthly CC payments are high and I'd prefer to dodge their high interest rates in the long term by basically paying them down with my loan money as soon as I can (say, the first year of med school, or if I can, and have enough money, all at once when I get my refund check). (Also, using my school's cost of attendance sheet, there are definite areas that I will save on that they list as being expensive, i.e. health insurance which I already have through my parents; yet, I'll still take out their calculated amount which is higher than the personal budget I came up with). So devil's advocate: Why shouldn't I do this (pay off CC's and Sallie Mae ASAP)? Of course I wouldn't want to run out of loan monies before the year's over, but suppose my budget is otherwise flawless and I'm disciplined enough to stick to it. PLUS, if I do pay them off, in the worst case scenario I run out of money, and I would have my entire high CC limit as a buffer.
--> What's going to happen to my credit score? For a moment I thought if I did the above that it would go way up because of the lower revolving utilization that lowered it in the first place, but then I remembered I'm going into 100's of thousands in debt, so maybe it doesn't matter "where" the debt is among CC's, student loans, etc. (Also I won't have any, or at least negligible, income, obviously).
--> Hear me out on this one... I have a decent moonlighting opportunity that would allow me to work as much or as little as I like, at my own schedule, throughout med school if I wanted. Why shouldn't I do it? I could ramp up on holidays and stop completely the week or so before exams or as needed to rest. People have other similar commitments in medical school like working out for an hour every day. Wouldn't it be OK for me to work even just 1 hour, 5 days/wk and make $20/day, ($600/mo, $7,200/year!!)? I could factor that out of my living expenses and save tons in interest down the line.
Thanks in advance.