[ARCHIVED THREAD] - Student Loans (Page 1 of 2)
Posted: 3/6/2014 12:21:19 PM EDT
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Anyone have any recent experience with student loans? I will be starting school in July, and fortunately it looks like the entire program will be paid for in full at least for the first 2 years, however that does NOT include housing, that will be out of pocket, and my pockets are empty, is that something student loans can cover? If so how much interest do they typically have?
Assuming they do would it be smarter to use them to buy a cheap house close to campus then sell it when I graduate (which would hopefully repay the loan), or should I look at renting/using the dorm? |
| You can use your loans to pay for anything related to your education, including housing. Buying a house close to campus, fixing it up, and reselling it can be a good plan but often houses close to campus command a premium so it really depends on the market and your finances. I wouldn't recommend living in the dorms. |
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So you're saying you have no job and are considering buying a house? Dude...  No. Relocating will be necessary for this, and I'm looking at what will be most feasible in the short term, incur smallish debt while I get reestablished, and have to pay it off over time later, or incur large debt, and (hopefully) pay it off all at once, and (possibly) make a profit. |
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Anyone have any recent experience with student loans? I will be starting school in July, and fortunately it looks like the entire program will be paid for in full at least for the first 2 years, however that does NOT include housing, that will be out of pocket, and my pockets are empty, is that something student loans can cover? If so how much interest do they typically have? Assuming they do would it be smarter to use them to buy a cheap house close to campus then sell it when I graduate (which would hopefully repay the loan), or should I look at renting/using the dorm? Student loans can be used to cover cost of living. IMO, it is definitely not smarter to use them to buy a cheap house close to campus to sell when you graduate. The amount of time you will be in school, even assuming modest appreciation, will probably not be long enough to offset the acquisition costs, maintenance, etc. I thought about doing this before I went to grad school, and I had the cash to do it. I started grad school in 2005, got out in 2008. You can imagine the shit I would have been in had I followed through. My best advice is to live in the cheapest place you can possibly find, work a part time job if possible, do not get involved in the graduate school bar scene and instead study more than your classmates. And, don't bank on any scholarship you think you may have lasting after your first semester. There are grad schools out there that grade on ridiculous curves that are designed to make students lose scholarships that were the reason for them to go there in the first place. |
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I currently pay $1400 a month for my loans. Shit sucks. Save your money and don't go to a private school. holy fucking balls. i only make about $2300 a month, no way i could swing that shit. OP, i went to an out of state school, Auburn. it was expensive as shit, not like a private school, but still expensive. i went down there and fucked around too, so have even more student loans. the student loans will cover living expenses. just figure what you need to survive a month and then multiply by 12 and ask for a loan to cover that. the rates are typically 1-3% IIRC. i'd have to look next month when i pay it to know for sure what they are. DO NOT get a credit card to help supplement. student loan interest is wayyyy lower. ask me how i know. i'm still paying that shit off. |
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Left school with $48,000 in student loans. I busted my ass and nuked those bastards in 4 years. Interest is usually cheap, however there isn't any getting around the fact that it is borrowed money. Ive got friends that have been out of college over 10 years that are still paying back student loans.
Be very careful. Starting your professional life buried in debt up to your ass is a poor plan. |
| if you have time before you start, save every dime you make until then. Get a weekend job, work OT, get some cash flow. Offset your living expenses as much as possible. Can you work during the school year? I wasnt able to save enough for a whole year of rent and food, but i saved a lot and took out small loans (2k or less) to cover what i couldnt with savings. I also donated plasma and worked part time. |
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Make sure you don't take out more than you can pay back. A rule of thumb is to only take out loans equal to your first year salary. So if you plan to make 40k don't take out more than 40k in loans. As for buying the house I wouldn't do it. There is no guarantee it will go up in value, and a real estate agent would take a chunk off that profit when you sold it (plus most of your first few payments go towards interest, not principal.). You would also have to worry about home repairs when you can least afford it. |
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My advice? Take a year off and live at your parents rent free, and work your ass off, just saving money for your first years tuition and fees. If there's a community college start there and take a couple of classes, but make sure you are working at least 40-50 hours a week.
Once you have a nice little nest egg saved up, say $15k-$20k, start college and keep working at least 20 hours a week. You should make it through your first 2-3 years without having to take out a single loan if you do it right. Chances are, with the work experience you get, you'll get promoted a few times and might even make enough your senior year to pay for everything on your own, and still have some cash in the bank. I'd rather hire a guy that did that than a guy that took out $50k in loans and didn't work through school. |
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Loans subsidized by the govt are typically 6.8% interest, the govt pays the interest while you are at least a 1/2 time student. Afterwards you pay the balance and any additional interest that accumulates during repayment after a six month grace period. STAY AWAY FROM PRIVATE LOANS, HIGHER INTEREST, YOU MAY HAVE TO START REPAYMENT BEFORE GRADUATION. The important thing is to minimize the loans you take out over the next few years as the balance will add up. Do not buy a house for college, you will not get enough of a loan to pay for it, you will have to take out a mortgage which is a separate loan and college is too short a time to buy a house as you will likely end up eating a loss over such a short time of ownership (typically you need to keep a house for 7 years for it to be worth it). After graduation the interest you pay on the loans is tax deductible (up to $2,500 as long as you make less than $80,000 a year, but this number will likely go up as time goes on). Keep the loans small as they pile up every semester and I wish I had been more responsible in this department while I was in grad school (too much ice climbing, high end camping gear, electronics, etc.). Loans can be useful if they are used properly and responsibly.
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I know you didn't ask it... but be damn sure you know what your getting into...
Years ago I decided "you know what, I need to go to school... Well in HS I really enjoyed architecture classes, I should go to college for that". After starting I found out that you really need a masters in architecture to be worth a damn. Even if you do have a masters, the job market in the field is shit. Not only that, but the awful professors I've had along the way have beaten ever bit of "give a damn" out of me. In the second year I had one prof asking all of us in the program "why are you doing this?? why don't you go to school for dentistry... or maybe nursing" and had another telling us we should have gone into engineering (these were unprovoked statements, mind you). Architecture still interests me... but I cannot see a future in it for me. 
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I know you didn't ask it... but be damn sure you know what your getting into... Years ago I decided "you know what, I need to go to school... Well in HS I really enjoyed architecture classes, I should go to college for that". After starting I found out that you really need a masters in architecture to be worth a damn. Even if you do have a masters, the job market in the field is shit. Not only that, but the awful professors I've had along the way have beaten ever bit of "give a damn" out of me. In the second year I had one prof asking all of us in the program "why are you doing this?? why don't you go to school for dentistry... or maybe nursing" and had another telling us we should have gone into engineering (these were unprovoked statements, mind you). Architecture still interests me... but I cannot see a future in it for me. I wasted 2 1/2 years doing architecture. I met some good friends but I wish I could get that time back. |
| One of the problems with the "I'll buy a house with the money" idea is that you don't know if/how much loan $ you'll get from one year (and sometimes semester) to the next. Student loan interest rates weren't lower than housing interest rates last time I knew (which was a while ago). |
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I thumbed thru a book years ago about a kid up in Michigan who found someone who would let him build a yurt on their property. Lived there 4 years while going thru school. true story. even with inflation a yurt shouldn't cost more than a grand. Did he having running water? Toilet service? A shower? |
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Huh? Never heard of this, can you elaborate? Quoted:
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Just get a non profit "job" and the .gov will pay them for you   Huh? Never heard of this, can you elaborate? Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. |
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I wasted 2 1/2 years doing architecture. I met some good friends but I wish I could get that time back. Quoted:
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I know you didn't ask it... but be damn sure you know what your getting into... Years ago I decided "you know what, I need to go to school... Well in HS I really enjoyed architecture classes, I should go to college for that". After starting I found out that you really need a masters in architecture to be worth a damn. Even if you do have a masters, the job market in the field is shit. Not only that, but the awful professors I've had along the way have beaten ever bit of "give a damn" out of me. In the second year I had one prof asking all of us in the program "why are you doing this?? why don't you go to school for dentistry... or maybe nursing" and had another telling us we should have gone into engineering (these were unprovoked statements, mind you). Architecture still interests me... but I cannot see a future in it for me. I wasted 2 1/2 years doing architecture. I met some good friends but I wish I could get that time back. I burned about 3 years... I'm currently trying to get an apprenticeship in a skilled trade. At least there's jobs around in those fields. |
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Quoted: Cant you get a lower interest rate? My loan bank gave me 2% for 20 years, paid off in 8, that was 15 yrs ago Quoted: Quoted: My loan payments are $290 a month for the next 8.5 years. All my loans are at 6.8% or lower interest rates. Cant you get a lower interest rate? My loan bank gave me 2% for 20 years, paid off in 8, that was 15 yrs ago |
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So you're saying you have no job and are considering buying a house? Dude...
ETA: Work part time, rent a dump. My wife and I had a horrible first apartment, but that was 10+ years ago, and we just laugh about it now. Yeah, my wife and I had bad apartment in an awful neighborhood - but we had a good time and still enjoy telling the stories. |
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Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. Quoted:
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Just get a non profit "job" and the .gov will pay them for you Huh? Never heard of this, can you elaborate? Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. |
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I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. Quoted:
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Just get a non profit "job" and the .gov will pay them for you Huh? Never heard of this, can you elaborate? Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. How long are those specific loans set for? 20 years? 30? |
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How long are those specific loans set for? 20 years? 30? Quoted:
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Just get a non profit "job" and the .gov will pay them for you Huh? Never heard of this, can you elaborate? Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. How long are those specific loans set for? 20 years? 30? As far as I can tell 10, so in other words the only way you would get anything forgiven is if there was some sort of issue that caused you to take longer to pay, like if you got a forbearance, or deferred payments, or something for some kind of hardship, and racked up extra interest. Not sure exactly how that's supposed to work. |
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I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. Quoted:
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Just get a non profit "job" and the .gov will pay them for you Huh? Never heard of this, can you elaborate? Not really sorry. All I know is my buddies little brother worked at a non profit for X years and the .gov is paying his loans...all 100k of them I'm told. I did some looking, and it might be this: http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Basically as long as you make 120 on time full payments (10 years worth) WHILE working at least 30 hours per week in a public service job, or a 501(c)(3) non profit (only payments made while working there count) then anything left over will be forgiven. Yup that's it. From my understanding his balance AFTER the 10 years(which ended last year) was still over 100k and we are picking up the tab. |
| Found a house in the area for just $7,500 on about a 1 acre lot (roughly, just judging by the pictures), it's torn up inside (badly), and small (just under 1,000 square feet), but the structure is sound, and it doesn't look like the scavengers have stripped it yet, should be able to repair it for just a few grand (mostly appliances, fixtures, paint, wall repair, and refinishing the floors), and it's just a few miles from the school. I haven't "fent" yet, and won't be able to for a few months probably anyway, but it's got the wheels turning. |
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1. Calculate how much you need for four years of college.
2. Calculate how much you expect to make out of college in your first 5 years. If the sum of #1 is greater than #2, you're probably making a mistake unless your future "ceiling" is very high. Hopefully you qualify for and filled out the FAFSA so you can get federally subsidized loans which don't accrue interest until after you graduate. If you didn't, Discover student loans and other private lenders will be more than happy to lend you money, but be prepared to pay in terms of interest and interest rates. |
| Join the military and then use your GI Bill money to go to school, in fact you can accumulate some college while you're in even if it's only CLEP or DANTES tests.. The Post 9-11 GI Bill gives you a pretty hefty living allowance. Or join the National Guard or Reserve, they have educational programs also. |
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Found a house in the area for just $7,500 on about a 1 acre lot (roughly, just judging by the pictures), it's torn up inside (badly), and small (just under 1,000 square feet), but the structure is sound, and it doesn't look like the scavengers have stripped it yet, should be able to repair it for just a few grand (mostly appliances, fixtures, paint, wall repair, and refinishing the floors), and it's just a few miles from the school. I haven't "fent" yet, and won't be able to for a few months probably anyway, but it's got the wheels turning. Dude... you're not moving to Detroit, are you? |
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Dude... you're not moving to Detroit, are you? Quoted:
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Found a house in the area for just $7,500 on about a 1 acre lot (roughly, just judging by the pictures), it's torn up inside (badly), and small (just under 1,000 square feet), but the structure is sound, and it doesn't look like the scavengers have stripped it yet, should be able to repair it for just a few grand (mostly appliances, fixtures, paint, wall repair, and refinishing the floors), and it's just a few miles from the school. I haven't "fent" yet, and won't be able to for a few months probably anyway, but it's got the wheels turning. Dude... you're not moving to Detroit, are you? Hell no. If I did that I would need Hescos, razor wire, and an M1A2 Abrams as my daily driver. The place I'm looking at is just a foreclosure that was trashed before the last people left. Like I said, it's a small house on a big lot, and it's a fairly cheap neighborhood (30-40k). The exterior, and structure both appear good, and it doesn't look like scavengers have stripped it, but it needs extensive wall repair, new appliances, some new fixtures, the floor needs to be sanded, and refinished, and it needs to be repainted. |