Financial aid

[journalismgirl]

I'm going back to school for a certificate program. It's considered a degree program, and because I'm taking six credits a term, I'm eligible for aid

Comments

[plainoljane]

Accept both loans, and then put the extra in a GIC until you're done your school (they don't charge interest until the schooling is finished). Then use the remaining to pay back the loans in part, and the interest will help.

[journalismgirl]

Oooh. I thought the interest started immediately.

[plainoljane]

It may be different for Staffords (whatever those are, I'm Canadian). But all the loans here for education don't accumulate interest until 6 months after the degree program is finished. I'd check with your university about the interest policy to be sure, though.

[cutefluffybunny]

one of the loans does accumulate interest while your in school. i can't remember which one though.

[jlygrnmigt]

I think Unsubsidized loans are bad news. If you want to have that cushion available, you can always turn down part of the loan...if you keep any though, make sure you make payments on the interest.

That's awesome that your company is helping you too.

[goldbug]

I agree. I think the OP shouldn't be taking that unsubsidized money unless he/she really needs it. And, like you point out, there is the option of taking some but not all of the unsub money.

[sunspot1984]

I have an unsubsidized loan and I'm starting to think it's more trouble than it's worth, with the accumulated interest on a large chunk of it that I am not even using right now. Accept only what you really need. You won't make enough in interest from a bank account to come close to what they will charge you (6.8% on my loan, perhaps higher on yours).

congratulations!

[mapani_worms]

I really don't think anyone can make this decision for you. Some questions to ask yourself:

What will the interest rate on the unsubsidized loan be? Would accepting the loan help you now and hurt you when the payments come due?

What will they do with the money if you don't accept it? Will it be given to someone else who can use it?

What will you do with the money if you accept it and don't need it for tuition? Set up a savings account so you can have a little security? Donate it to charity?

What if you don't accept the loan and end up needing it? Will this effect your ability to finish the program?

Re: congratulations!

[journalismgirl]

According to the university's website, the interest rate is 6.80 percent, even for the unsubsidized loan. The interest I get in my high-yield account is 5 percent. That's where I'd be putting the money.

If I don't accept the loan, and end up needing it, it could affect my ability to finish. I think. I'm not sure.

I don't think it would hurt me if I accept it now. I'd be sticking any extra in that high-yield, so I will be making some interest -- interest that I'd likely use to pay it off.

The big difference is that if I accept both loans, I won't have to pay anything right now for my education, and I won't have to worry about where I'm getting the money from. I like the sounds of that. Money is one of those things I always worry about, and it would be nice to not have to do that for more than a year.

[mapani_worms]

I'm a worrier as well. I check my bank balance obsessively, even when I know I'm ahead.

If it could affect your finishing, take the loan. How much would it end up costing if you can't finish this semester because of money and have to take out additional loans for a redo? I don't think 1.8 percent is very much to pay for that peace of mind.

Also, will the certificate help you get a pay raise or make you eligible for certificate pay? If so, think of the loan as an investment.

[journalismgirl]

The certificate won't make me eligible for a pay raise, but it will allow me to apply for competitive government and public relations jobs after I complete said program.

I'm definitely viewing the loan as an investment; I don't carry any debt, so I was initially very uncomfortable about taking out loans.

[nymphatacita]

you can always take out the second loan later. Just take out the one for now. You'll be less likely to spend the money if you have to go back to the financial aid office to get it.

[noiredemons]

The unsub loan you can take out at any time during your education. It usually takes like a week to 10 days to disperse. I'd take the sub loan and take a bit out of the unsub loan so you dont have to worry about books, etc and if you need more of the unsub loan, just visit your loan office and ask for it.

[journalismgirl]

I'm obviously clueless about this whole process...

So I can take out part of the unsub loan, but not all of it?

[goldbug]

Sounds like you should talk to the financial aid people at your school. They should be able to explain all your options (and in a more coherent manner than disjointed comments on lj).

[noiredemons]

Yes. For all students loans you have to "accept" the loan to recieve the laon. The sub loan is nice b/c the gov't will pay the interest until 6 months after you graduate. The Unsub loan is nice because the interest rate is lower than what you would get from any other loaner. The interest on the unsub loan starts on the day it disperses. In the past, I have been able to take the loans I need and half way through the semester take out more of the loan if I needed it. Go talk to a fin aide person, they can walk you through this process. Fin aide is amazing but also a bitch.