I AM FINISHING MY FIRST SEMESTER OF SCHOOL. i HAVE RECEIVED THE MAX AMOUNT PELL GRANT AND AFTER PELL PAYS THE REMAINING BALANCE PWED TO THE SCHOOL EACH QUATER IS ABOUT $750 (NOT INCLUDING BOOKS AND A $300 TECH FEE)

MY FIRST SEMESTER I RECEIVED 2 LOANS THROUGH SALLE MAE $2000 AND $1313 AND WILL GET THIS SAME AMOUNT AGAIN IN FEBRUARY. FROM WHAT I UNDERSTAND THE LOAN AMOUNT I AM ELIGIBLE FOR WILL INCREASE AS I ACCRUE MORE CREDIT HOURS


NOW HERE IS MY QUESTION.... I DONT NECESSARILY NEED THESE LOANS EXCEPT TO COVER ABOUT $1000 EACH SEMESTER AND IF PUSH CAME TO SHOVE I COULD PRBABLY PAY THAT WITHOUT THE LOAN ALTHOUGH IT WOULD BE HARD SINCE WE HAVE FOUR CHILDREN AND I HAVE NOT WORKED FOR EIGHT YEARS

MY HUSBAND AND I BOTH HAVE FICO SCORES IN THE MID 500'S AND OUR GOAL IS TO AT SOME POINT BUY A HOME. I AM THINKING IT WOULD BE NICE TO DO THAT ASAP AND HE IS TIRED OF LEASING

NOW OTHER THAN JUST ENJOYING THE EXTRA MONEY IN MY POCKET WHEN THE LOAN CHECK COMES I REALLY HAVE NO REAL PRESSING NEED FPOR THE FULL LOAN AMOUNT

WILL THESE LOANS COME BACK TO HAUNT ME LATER DOWN THE ROAD WHEN WE ARE READY TO BUY A HOUSE? SHOULD I JUST PAY THEM BACK AS SOON AS I GET THEM?(HAND THEM THEIR MONEY RIGHT BACK?) OR MAKE THE REGULAR PAYMENTS UPON GRADUATION? OR IS THIS ACTUALLY HELPING MY CREDIT? I AM SOMEWHAT CONCERENED THAT IT LOOKS LIKE I WILL HAVE 2 NEW LISTINGS ON MY CR EACH SEMSTER

I AM IN THE PROCESS OF CLEANING UP OUR CREDIT REPORTS NOW SO THAT BY THE TIME I GRADUATE IN THREE YEARSWE WILL HOPEFULLY BE IN A POSITION TO BUY A HOME


I HOPE THIS POST MAKES SENSE AND I CAN GET SOME OPINIONS FROM SOME OF YOU WHO HAVE BEEN THERE AND DONE THAT

I would take the student loan money you absolutely need for school as the interest rate is good and you don't go into repayment until you graduate or drop below half time. I would use any extra cash you have on hand to save for a downpayment/closing costs or pay down debt. Keep in mind you are paying for an education that will hopefully pay off one day with a better job & income for yourself and your family.

The feds pay the interest on your subsidized student loans so if you only need an additional $1000/semester, accept those first.

Your credit reports should say 'student loan not in repayment' but as far as how the debt will affect your ability to qualify for a mortgage, I will give this a bump and bow to Fla-tan's knowledge as he also moderates the mortgage board.