<p>i just opened a new bank account and the reason i thought of accepting loans is to boost my credit lines.
So, did everyone accept loans?</p>
<p>i would accept the direct loans, reject plus/parent loans</p>
<p>can you tell me why?
thx for your reply</p>
<p>I accepted a $3500 subsidized loan and $550 unsubsidized loan</p>
<p>anyone know if the direct loan is tax deductible?</p>
<p>its good to accept the direct loans because you dont need to pay interest for subsidized and for the unsubsidized, the interest comes out to very low. its $2000 at 6.8% (i think) which comes out to like $136 a year, which isn’t much at all. and if you don’t take these loans, it can give the wrong impression to the financial aid office that you have sufficient funds to pay off your stuff, which is why you didn’t take the loans, and in the future, they might drastically reduce your awards.</p>
<p>i’d personally accept only the subsidized loans, and reject the rest</p>
<p>If you can pay without the loans, don’t accept them. Loans are debt that you’ll have to pay back later, limiting your options once you graduate. Debt is almost never a good thing.</p>
<p>Besides, loans that you don’t have to start paying back until after you graduate won’t help your credit rating now anyway. There are other ways to build credit now. Look over the many credit card offers that college students are bombarded with and try to find one without any annual fee. Then make some purchases with the credit card and make sure to pay back the entire balance each month (so you aren’t paying any interest). Be very careful never to miss a payment or be late with a payment. That’s the way to build credit.</p>
<p>So should i, or should i not accept unsubsidized loans?</p>
<p>@AndrewL calculate how much you will spend this year at UCSD. If you need the unsubsidized loans to meet all your costs, take it. If you think you can manage without the loan, then don’t accept it or accept a smaller ammount.</p>