<p>Is it possible to just pay back the Federal Direct Loan in full rather than take on the repayment plan? I took out a ~$5000 subsidized loan thinking I may need it on my study abroad, but in the end I didn't. When I graduate next year the money will still be sitting in my bank account, can I just pay it back in full all at once during the grace period or do I have to pay the monthly installments?</p>
<p>You can pay it back in full.</p>
<p>Was it all subsidized? Are you sure? If not, you should pay it back immediately to stop accruing interest.</p>
<p>My DD graduated in May with a couple job offers. SHe chose the job near us, moved home and saved her $. She just paid back her sub loans in full. No problem at all. It’s one of the options.</p>
<p>Awesome!!!</p>
<p>If a child can find a good job by the parents’ home (and the parents still have room!), then living at home and quickly paying off smallish debts is a good option!</p>
<p>however, some kids don’t want to live with mom or dad…they’d rather live with a significant other or at least live where parents’ rules don’t interfere. Of course, some kids can’t find a job in the hometown.</p>
<p>How much debt did your D have?</p>
<p>mom2collegekids,
She had about $20,000 in total (not crazy debt like some kids and she saved some from her job senior yr). And yes, she doesn’t like living here; she’d prefer living with friends but it’s just not working out. Some of her friends haven’t found “real” jobs yet or they’re attending grad school or they’re living with significant others and struggling to pay the bills. My d’s bf is currently living/working in Europe so life is unsettled for the time being. She wasn’t able to get a VISA to work/live there so that made using our house as home base an easier decision. She already owned a car so her expenses have been relatively low (since she gets room and board free and we covered insurance through the end of the calendar year). But now that the loans are gone, she has to pay her own car and health insurance. She’s talking about saving up now for big things down the road (or if her job ends or she decides to move out). One of her college roommates is getting married soon and they already bought a house. That made my DD realize she’s not ready to be “locked in” to any one area yet. I expect changes soon. I’d love to get some of her stuff out of here (she shared a 3 bedroom townhouse at college so has way too much stuff for us to store much longer).</p>
<p>Congrats to your D! In a year or two…she’ll be sooooo glad that she got rid of those debts so quickly. You raised a smart-thinking girl. Congrats to you, too!</p>
<p>You should see her with coupons when grocery and clothing shopping. Having that apt on campus really helped her see the benefits of buying things for less than reg price since “she” pocketed the difference… all 5 of us are pretty frugal in that way. When she complains about not having enough room or how it’s hard to access some of her stuff (stored anywhere we could find room, including basement and garage) I simply remind her SHE can pay for a storage unit. That quiets her right down.</p>