<p>I'm in my first year of college at a local 2year community college. I had no college savings, so I took a loan to cover about half my tuition. Now I'm debating how I should go about the rest of my college career, financially. I'm 17, graduated early so I got thrown into this faster than I expected :p</p>
<p>I work part time, earning about 400/month. My expenses use about half of that.
Currently saving the other half or using it towards remaining tuition.</p>
<p>I only qualify for unsubsidized federal loans. No grants, and I've been applying for scholarships but no luck so far.
I'll have to move out of my parent's house to another city after next year to transfer to a 4 year college.</p>
<p>Option one: take loans (probably max amounts jr&sr years) in my name for tuition and living expenses and don't worry about paying them off until I'm out of school.</p>
<p>Option two: take minimum loans possible and pay off what I've already got as I can, graduate with as little debt as possible (this makes me nervous about not having any savings, though!)</p>
<p>Suggestions from someone who's been there done that?</p>
<p>Having significant amounts of money in savings earning basically zero interest does not make financial sense when you are carrying loans that are accruing interest. I wouldn’t recommend having zero savings, but the more you can pay down your student loans early, the less you will ultimately owe.</p>
<p>Do not borrow student loans at 7% interest just to have money in a savings account.</p>
<p>You don’t have to start paying anything back until you are out of school, right? Then I would suggest option 3: take out as little in loans as possible, but use your current income to put a little in savings for emergencies and for living expenses. Start paying off the loans when you get out of school.</p>
<p>Unsubsidized loans accrue interest immediately, at 6,8%. You are losing money if you don’t repay loans that you could pay back. If you need the money, that’s one thing … but if you can repay them as you go along, you will save money.</p>
<p>Note: I believe for FASFA purposes, you can excluded assets from Student Loans. So, if you are given a $10,000 loan this year, and keep it in the bank, just in case, then DO NOT report it on the FASFA. Otherwise, your EFC will skyrocket.</p>
<p>Yes, there is a huge difference in total cost over the years between unsubsidized and subsidized loans. If you do need to take out additional unsubsidized loans, try to do it in your last semester of college, so you will get hit with less accrued interest while in college.</p>