Hi, i’m in my last semester at a CC and i’m going to be transferring for the fall 2018 semester. I got a good merit scholarship that covers most of the tuition, leaving me with around 4K to pay each semester. I also have an apartment with roommates that is 300$ a month. I am able to afford these costs out of pocket- i’ve been working and saving for about 4 years now and have a good amount of money in my savings(~25K), more than enough to pay the remaining 16K I need for my last two years of school.
I already have a job lined up in the area i’m moving to and I will be working about 25 hours a week, which i’m planning on using to pay for my rent.
My question is- do you think I should pay the 4K out of pocket each semester, or take out the stafford loan(7.5K) and keep my savings for emergencies.
If I paid out of pocket, I would graduate with no debt.
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Is any of that loan subsidized? If so, you should only take the subsidized one in case of emergency. That way if you have a car repair issue or something, you won’t have to use a credit card.
You’ve done a good job saving and getting this far with no debt, if you have the money I would pay it out of pocket
Isn’t interest deferred until you graduate? You could take out a few k to have an emergency fund and then pay back the loan before it starts accruing interest.
Love your avatar, by the way! Aussies are wonderful. 
^^^^^
@MaineLonghorn interest is only subsidized (paid for you) on subsidized loans until graduation. And only some of the $7500 he’s been offered could be subsidized…so he should only take the subsidized portion for junior year, save it for emergencies. If not needed, then don’t take the second sub loan senior year. Pay off loan after graduation
This is only true for subsidized Direct Loans. Unsubsidized loans accrue interest the minute they are disbursed.
It makes no sense to borrow in your position. Reassess each year but don’t borrow just in case.
If the loan is subsidized (and all but $2000 per year can be, but it depends on your FAFSA and EFC numbers), it is a very cheap cost to you (1% origination fee). It would be a good idea to take the money, bank it, and just pay it back when you graduated if you haven’t used it. You can also take it when you need it during the school year. You have a lot of time to figure it out.