Ok so summing it up, it seems like I have to call and check the terms of the loan. And that the interest has to be paid before the principal. The $8k is in two parts so they’ve only disbursed $4,000 so far. And the interest is $50.
@twoinanddone I agree that I am more likely to spend it if it’s in there. (Only because I know myself and that’s how I am. I wouldn’t blow all of it but I could see myself using ‘emergency’ loosely. Last year, several times, I borrowed money from my roommate, normally small amounts. I only had a work study Spring semester, didn’t have a job in the fall. And by Spring, most of the money I had from summer was nearly gone. The thing is I am very loyal about paying it back. The most I borrowed was $50 because I had an extra tuition charge and I would go ok I’m getting paid next Friday and then I will withdraw the money from my check and pay you right away. But I don’t want to have to use my friend as my personal ATM if I don’t have to. What I’m thinking is That when the spring disbursement of the plus comes, I’ve already travelled a lot, I tutor in English a little bit, I can hopefully cut some expenses and not spend the full $4k and put the remainder in savings, and the $3500 to the loan.
When I asked the question, I was basically talking about if paying the $3500 RIGHT NOW would affect the interest that’s building now. But from your answer, I don’t think it would affect the interest now, only the interest on the loan after the grace period. (6 months after grad)