Help with student loans [Still in school]

[Anonymous]

Hi all, 

I have a question concerning student loans. To give you some background information: I am a hearing-impaired college freshman who took out about $5500 total in loans since I never heard back from the a state program I applied for. The program essentially pays all tuition for full-time students with disabilities who are attending public universities.

However, I've recently found out that I was approved for this program at the beginning of this semester, so I notified my school about this and they just refunded most of the money for this current semester today. Along with some money I saved up for necessary expenses I have about 78% of what I borrowed saved up. My question is: What would be the best amount to pay for now, seeing as I'm still in school and might need some money for emergencies/necessities? I am currently unemployed but I've been looking for a part time job. The loans have separate interest rates at 3.4% and 6.8%

[bahbahd]

It depends on the type of loan. Subsidized Federal Loans have no interest accrual while you are in school. With this loan type, you would have no negative impact of keeping the loan open while you are in school. If this is the case, I would just hold onto as much of the money you need for a 3-6 month of expenses "rainy day fun." If you have Federal unsubsidized loans, I would keep less of a rainy day fund and make interest payments while in school.

If the loans are private or a loan directly from the school, I would send most of it in as a payment.

Whatever you do, don't keep the funds as a rainy day fund and then spend them on silly things that people do in their younger years - spring break vacations, parties, excuse not to work, expensive food or beverages, big screen tv for that xbox game, etc.