I am on track to graduate on time. I am an incoming junior at a state school. I’ve borrowed $20,000 so far. This year I was offered 6500 and accepted only 4500 because that was subsidized. (I do have to talk to the financial aid office. I should have been offered 5500 because of my junior status but my credits hadn’t transferred until after my aid letter.)
4500 loan this year plus grants and scholarships was EXACTLY enough to cover the rent/utilities for my off-campus apartment for the year and tuition. I have a job at a restaurant where I plan to work 10-15 hours a week making 9.50/hr. I also have $900 saved.
So the only thing my aid didn’t cover that I need to pay for is my personal expenses including my phone bill at $45/month, groceries to feed myself, books, and going out money.
I thought that I would be able to cover that on my own. But one, having to pay my phone is something new that was sprung on me. Before it was paid for by my grandmother. I guess I am just nervous that I will always feel short/low on cash. And since I will be graduating with less than the average in debt, I was wondering if I should ask financial services to give me the full loan amount that was offered. What do you think?
Also this sounds superficial to post but I will because I like to be realistic when calculating my expected expenses. I did not have a spring break my first two years and I want to go on one this year. Also, I want to do an out-of-pocket language exchange. I would likely need $2,000 planned for the language trip since I would be doing it with a local language school not with a U.S university.
I’m studying Journalism and Spanish. I have also started studying Portuguese so that is what I want to do the exchange in. I know I won’t have the time to do it after I graduate/start working.
Since money is an issue, I would take the full loan and put the money aside in a savings account. Pay your regualr expenses from your paycheck. Don’t use loan money to go out or to fund a spring break trip. That is a bad use of loan funds. If you cant cash flow a trip but saving some from each paycheck, you can’t afford to go. Think closer, cheaper, simpler.
If you can’t trust yourself to put the money in an account and not waste it, forget my prior advice and don’t take the extra money.
You can take out the balance of the Direct Loan ANY time during this academic year. You just have to make sure you do so giving enough time for it all to process before the end of YOUR academic year.
So…if saving isn’t your strong suit…don’t borrow the money until late spring…and then immediately send it off to,your bursars office for payment of your final year.
^This. But I’ll go against the flow here and say use your $900 savings to fund your spring break or at least a long weekend with friends. Everyone needs some down time and it seems like you are working hard and doing what you need to do. I don’t think you should spend thousands going to Aruba or anything like that though lol
^The $900 is money he has saved up previously. I don’t condone taking out student loans and spending thousands on a trip to the beach for drinking and partying. But yes, I think every hard working person deserves a break at some point and to spend a few hundred dollars on a weekend away would seem justified.
Does your mom or dad claim you as a dependent on the tax return and is he or she eligible to take the American Opportunity Tax Credit of up to $2500? If so, ask them about helping you out.