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[Anonymous]

If you are going to take a new stafford subsidized for this academic year to pay off a old stafford loans then you are saying that you don't really need the student loan for this year to actual pay academic expenses. If you don't actually need the money and have so much extra already just pay off the loans and don't take money from the program. This money could be utilized for people that actually need it.

This situation you describe draws some questions how you are qualifying for government loan programs which are based on financial need (FAFSA) but you don't really need the money for academic expenses. Are you fudging your FAFSA or getting monetary support from MOM/DAD or a job that you're not reporting when they are calculating your EFC to make you look more neeedy than you are.

[Anonymous]

Your story doesn't add up and has contradictions.

You are obviously misrepresenting your FAFSA in some way to qualify for subsidized loans but claim you have a "cushion" so muchh that you don't need it for actual academic expenses for the year and can use it to pay off a previous loan.

Lying on your FAFSA to qualify for a subsidized loan you don't need or will use for academic expenses you claim as proof of you're "good at managinf money"...actually it's a crime. I'm sure you will have no problems in cheating on your taxes too, once you have a real job!

[Anonymous]

The only thng" too funny", as you put it, is your juvenile understanding and obviously the fact misrepresenting a FAFSA to gain more financial aid is a crime. You are hilarious from claiming to be so poor to having a good cushion in the matter of 3 posts...enough of a cushion to use this years loan to pay an old loan. Like I said before you are full of contradictions.

You claim you're "so poor" and need financial aid but instead of using financial aid loan for this acadmeic year you're using it to pay off an old loan which isn't in repayment.

THAT MEANS YOU DON'T NEED THIIS YEARS LOAN IF YOU CAN USE IT TOWARDS AN OLD LOAN AND NOT USE IT TOWARDS CURRENT ACADEMIC EXPNSES.

WHICH PART OF THAT DON'T YOU UNDERSTAND?

 Btw, the COA is calculated the same for everyone, but the EFC is different based on what you put on the FAFSA. Let me guess when they ask what your current bank statement balances are you lie, not representing as you call "your cushion" (which allows you the ability to use a current loan to pay an old one) to make you seem more needy and thus lowering the EFC and increasing the amount of federal loan aid you receive.

[llecs]

Public warning to be friendly and supportive.

[Anonymous]

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@Anonymous wrote:

If you are going to take a new stafford subsidized for this academic year to pay off a old stafford loans then you are saying that you don't really need the student loan for this year to actual pay academic expenses. If you don't actually need the money and have so much extra already just pay off the loans and don't take money from the program. This money could be utilized for people that actually need it.

This situation you describe draws some questions how you are qualifying for government loan programs which are based on financial need (FAFSA) but you don't really need the money for academic expenses. Are you fudging your FAFSA or getting monetary support from MOM/DAD or a job that you're not reporting when they are calculating your EFC to make you look more neeedy than you are.

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Not necessarily does this make sense.  If the new loan pays off the old loan, there hasn't been any decrease in the amount of net new money.  If he owes $5000, borrows $5000 which pays the old $5000, then he hasn't diluted the money pool at all.  He has only improved the interest rate so that he is able to PAY IT BACK FASTER, which will provide more money to loan to somebody else.

There is a difference between being able to meet month to month expense out of cash flow and lump sum paying a larger amount.  So, to say he "doesn't need" the money because he can manage to make ends meet isn't quite accurate.  By reducing his APR 2%, if he continues to pay the same dollar amount as before, he is making greater headway on the loan.  If he pockets the difference, then he has more discretionary cash now which means he needs to borrow less because his payments are less.

[Anonymous]

txjohn wote:

"If the new loan pays off the old loan, there hasn't been any decrease in the amount of net new money.  If he owes $5000, borrows $5000 which pays the old $5000, then he hasn't diluted the money pool at all. "

You really don't get how FA works. If he was determined have a need of certain $ amount that's for academic needs related to school. He is not using the money for academic expenses which the need and loan was based on. He's using it to paya nother loan. He has admitting he has enough money that he can use none of the money for the intended purpose of academic expenses.

txjohn wrote:

"By reducing his APR 2%, if he continues to pay the same dollar amount as before, he is making greater headway on the loan."

"

Btw, he has not paying on the loan now. He took a loan out a higher interest rate which he was determined to have some need for and is paying it off from another loan that he got based on need.Obviously since he can use the new loan based on supposed need to pay off the first loan and not towards actual expenses he's not so needy. This guy is fudging his FAFSA to seem more needy and not using the money towards the designated purpose of academci expenses for the intended year the need was intended for. 

[Anonymous]

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@Anonymous wrote:

txjohn wote:

"If the new loan pays off the old loan, there hasn't been any decrease in the amount of net new money.  If he owes $5000, borrows $5000 which pays the old $5000, then he hasn't diluted the money pool at all. "

You really don't get how FA works. If he was determined have a need of certain $ amount that's for academic needs related to school. He is not using the money for academic expenses which the need and loan was based on. He's using it to paya nother loan. He has admitting he has enough money that he can use none of the money for the intended purpose of academic expenses.

@Anonymous wrote:

"By reducing his APR 2%, if he continues to pay the same dollar amount as before, he is making greater headway on the loan."

"

Btw, he has not paying on the loan now. He took a loan out a higher interest rate which he was determined to have some need for and is paying it off from another loan that he got based on need.Obviously since he can use the new loan based on supposed need to pay off the first loan and not towards actual expenses he's not so needy. This guy is fudging his FAFSA to seem more needy and not using the money towards the designated purpose of academci expenses for the intended year the need was intended for. 

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You seem quite agitated over an intellectual topic, OTC. 

The only point I made was, if the OP "qualifies" then they qualify.  Money is fungible.  Like a balance sheet, as long as they balance it, there is no wrong doing, IMO, in trying to better prepare oneself to be able pay off a debt incurred.

Many people who get loans could probably figure out a way to survive without the loan.  The loan doesn't have to necessarily mean "only option" otherwise school is "not an option."

I am not aware of any financial conditions, other than the qualifying conditions, on how the money is used.  I am not aware that the loan received has to have those specific greenbacks (serial numbers verified) go to a specific place.  If the OP qualifies, goes to school and pays back the loans, then I don't think all this "big brother" talk is useful.

I much prefer this to those who fail to pay back their obligations.  That is what really takes money out of the system, IMO.