Loan or no loan?

The answer is quite obvious that avoiding loans is the best if you are able to do so. I actually have a question regarding that, though. I am grateful that right now I am able to avoid loans and pay the remaining costs out-of-pocket. I’m wondering though, should I just continue making monthly payments and not taking out a loan or should I take out a loan and put the monthly payments towards it? I was only thinking about this because what if something does come up that has to be taken care of immediately and end up not having any extra money to make a payment or two. My parents are the ones who are actually paying for it all and I actually feel bad about that to a certain extent. They pay for the necessities, but if there is a luxury item I want I have to pay for it myself; which is understandable. What do you guys think I should do? Just completely avoid the loan or take out the loan and pay it off month-by-month instead?

In another thread you said you’re commuting and each of your (divorced) parents are paying ~$335/month for 8 months/year – the rest is covered by grants. No, I don’t think you should borrow. If your parents run into trouble and can’t pay, you can always take out the loan during the semester. If you’re worried about it, work next summer and save as much of the ~$3k that you earn as you can. I don’t know what you consider “luxury” items, but since your parents are paying for your car insurance and other big bills, I suggest you use part of the ~$1500 you have saved and replenish it next summer and/or work a few hours a week now to pay for extras.

Yes, you could look for a campus job, do you have work study?

You don’t need to take any loans. If something comes up, THEN you can ask for a loan. It won’t take long. Silly to take loans just to make payments towards it rather than payments to the school.