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09-07-2008, 12:22 PM
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#1 |
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Registered User
Join Date: Sep 2008
Posts: 2
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CROSSROADS IN LIFE: Tuition pay by saved money or loan?, Your advice is greatly appre
With grants and scholarships, I lowered my tuition & fees bill to $5,665 per year. My family does not have the ability to pay for this sum, therefore, I can only result in two options:
(1) Savings Account accumulated from the time of my birth $6000 (2) Loan from a federal/private sector (not stafford though) What should I do? My savings can barely cover for it, but should I loan? I have co-op next year and am able to make approximately $15,990 per co-op cycle. If I loan, I will only have to pay interest for 18 months (1 year for this year, and half a year for co-op cycle). I am at a crossroad, what should I do? Please help as soon as possible! |
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09-07-2008, 10:22 PM
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#2 |
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Harold Hecuba Productions
Join Date: Sep 2004
Location: New Berlin, Illinois
Posts: 934
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You're quite fortunate to have alternatives to choose from!
It doesn't have to be all or nothing, does it? Can you get a loan for half and pay the other half from savings? That way you don't load up on loans, and at the same time you don't completely dissolve your savings. It's worth a thought... Other questions - will your co-op have an impact on your grants and scholarships next year? In addition, will your savings balance (if you still have savings) impact your grants and scholarships next year? Best of luck!
__________________
jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment). |
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09-08-2008, 01:05 AM
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#3 |
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Registered User
Join Date: Sep 2008
Posts: 2
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Thanks for replying!
Having an income will affect my financial aid. However, it won't be that much because all except $5000.00(stafford) comes from merit-based scholarship guaranteed for all undergraduate years (that I keep a 3.2 GPA, of course). Since my school's tuition is at a fix number, my bills will most likely be $5665.98 for the years ahead. I plan to use next year's co-op money ($15,990.00 per cycle) to pay for this year and next year's bill. And I have 3 co-ops to comfortably fit the bill. The things is, I WILL be able to pay off all loans in next year (sophomore) so a federal loan of 6.8% versus a private loan of 10.5% does not make much difference (also that borrowing amount of $5665.98) Do you think I should save or loan? Where should I draw the line? ***regarding to the line, my school expenses are paid for (no worries). |
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09-08-2008, 09:22 AM
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#4 |
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Harold Hecuba Productions
Join Date: Sep 2004
Location: New Berlin, Illinois
Posts: 934
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I suppose under the circumstances, especially if you have no other source of "emergency funds", it makes a great deal of sense to borrow and pay back next year, preserving your savings for the true emergencies...
__________________
jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment). |
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09-09-2008, 04:29 PM
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#5 |
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Registered User
Join Date: Jul 2008
Posts: 46
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You can borrow half the money and pay the rest from your savings. This way you'll have a smaller loan and still have some savings just in case.
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