The REASON im here is 4 u all to HELP! =) (please)

[Anonymous]

I live in oklahoma and am beginning school again... going to start part time at the local CC.

I got a letter staying i would get  (spring and fall)

= pell grant   2981    <-- should cover all tuition and likely books.

=subsidized stafford  3500

=unsubsidized staff  4000

Now my qestion is this, should i take the sub and unsub?  I mean i could probably squeeze by without it but it would be incredibly though.  I think it can help to have 2 good loans in good standing.  can i pay them off soooner?

thank!!

Message Edited by fender on 06-07-2008 04:56 PM

[Anonymous]

I'd take them-

The Sub loan- the interest is paid by the government while you are in school- 

The interest rate on the Sub is going to be about 6.8% or maybe less  -

Drop them into a savings account and try not to use them-  6 months after graduation- pay them off.

[Anonymous]

Deposit them into a high yield saving account (ING, etc) and pay them off when the grace period ends, as Timothy suggested.

[Anonymous]

exactly the information I hoped to hear

thanks!

[Anonymous]

I am not here to recommend that you do or don't do this, but if you were to take that advice then it would be wise to only take the sub portion as the effective rate on it is 0% (it's 6.8, but the gov't pays while you are in school).  The reason why is because ING (which has a high rate for a savings account) will only pay 3%.  If you take the un-sub, you are paying 6.8% so you lose 3.8%.  On the sub you gain all 3%.  So financially it only makes sense to either take the sub and dep into a savings, or take them both and try to find a better paying option than a savings account (stock market??).  If you take the sub, you still have an installment loan on record (for FICO purposes), and you don't lose money on it.  Both are satisfied.