Student Loan... Keep it for awhile or send it back

[jumar112]

Hi everyone.

Background to this question. I was working full time and going to school full time. Because of my husbands and my combined income, I was not able to qualify for a Pell grant and had to take out student loans for approx 6600.00. My school started in September 2005.

I got laid off my job in December 2005 (that is why I started school, I knew layoff was sooner or later).

I have aleady had 2200.00 disbursed to the school for my tuition, books etc and the next disbursment is in February.

Because my job was sent out of country (Canada), Our company was certified for the Trade Allowance Act, and also since I became a dislocated worker I was eligible to Work Investment Program in my state.

Between the Trade Allowance Act and the Work Investment Program they are picking up the remainder of my schooling.

When the disbursment in February and May come for my student loans, I have the choice of sending the money back or keeping it and using it to pay living expenses.

I have been thinking of keeping the money and holding on to it in case I would need it for an emergency while I am in school. I will be done with school in September 2006.

I hope to not have to use it, and then when I get done with school, send it back to pay off the loans.

Was wondering if anyone else has done this and what is the down fall (if any) to do this.

Thanks

[TxQuiltGirl]

I would not take the money if I didn't need it. You will still be accumulating interest on these loans.

[Pauper]

Hi everyone.

Background to this question. I was working full time and going to school full time. Because of my husbands and my combined income, I was not able to qualify for a Pell grant and had to take out student loans for approx 6600.00. My school started in September 2005.

I got laid off my job in December 2005 (that is why I started school, I knew layoff was sooner or later).

I have aleady had 2200.00 disbursed to the school for my tuition, books etc and the next disbursment is in February.

Because my job was sent out of country (Canada), Our company was certified for the Trade Allowance Act, and also since I became a dislocated worker I was eligible to Work Investment Program in my state.

Between the Trade Allowance Act and the Work Investment Program they are picking up the remainder of my schooling.

When the disbursment in February and May come for my student loans, I have the choice of sending the money back or keeping it and using it to pay living expenses.

I have been thinking of keeping the money and holding on to it in case I would need it for an emergency while I am in school. I will be done with school in September 2006.

I hope to not have to use it, and then when I get done with school, send it back to pay off the loans.

Was wondering if anyone else has done this and what is the down fall (if any) to do this.

Thanks

 

You are absolutley out of your mind.

 

If there is any doubt, ANY DOUBT, whether or not to take the S.L. money, then there is NO DOUBT that you should NOT!

[breeze]

It's a bad way to finance anything, if you have ANY other options. These loans have far reaching, unavoidable consequences should anything not go as planned, and you become unable to repay them promptly.

[LynnInMN]

My sister had extra funds on her student loans. She turned them into CD's and just let them sit there. She lived frugally, bought everything second hand and worked part time. In the end, she cashed in her CD's and paid off her loans after the six months grace period and made a chunk of change for herself. You would have to be disicplined. All of her loans were subsidized so no interest accrued on them.

[jumar112]

Thanks for all the insight.

 

I received notification the student loan was ready to pick up at the begining of feb and I went in

and told the finacial officer to void the check and send it back. (you should have seen the look, she kept saying "Are you sure??????)

 

Thanks all!!

[BrwnEyedGirl]

Thanks for all the insight.

 

I received notification the student loan was ready to pick up at the begining of feb and I went in

and told the finacial officer to void the check and send it back. (you should have seen the look, she kept saying "Are you sure??????)

 

Thanks all!!

 

 

Glad you didn't take it.

Edited February 12, 2006 by SDMuse