<p>Right now i took out 2500 in subsidized loans and I'm considering taking out the maximum loan that taxpayers are willing to lend and save (the difference of the student loans and amount able to borrow) in the bank to pay for graduate school. I'm currently at miami hamilton with a cost that is 6000 and the most they are able to lend is 13000 should i take the difference and save it for graduate school when its 20000 plus.</p>
<p>How are you able to get in excess of the $5500 in Direct Loans in YOUR name only? The $5500 Direct Loan is the maximum allowed for freshmen. Sometimes students are offered the Perkins loan as well…but that is seldom more than $4000. Where would $13,000 in loans in YOUR name (the student) come from?</p>
<p>I personally do not think it’s smart to take out loans you do NOT need.</p>
<p>Loans are available to grad students and some programs have stipends and built in jobs. Unsubsidized loans are accruing interest at close to 7% a year. Parent loans are at close to 8%. Private loans are for more. So why don’t you wait until you are a grad student and take out the loans then. </p>
<p>You may also run into issues with financial aid as an UG as 20% of your assets goes directly towards your EFC. Any financial aid monies are not considered assets but you are really pushing it if you are stock piling beyond a year. </p>
<p>You want to give us a little more information so we can see where you are and what you are trying to do.</p>
<p>@ cptofthehouse @ thumper1</p>
<p>The following is my financial aid information</p>
<p>Cost of Attendance
Book Expenses<br>
$719.00
Boarding Expenses<br>
$2,673.00
Direct Loan Fee
$70.00
Miscellaneous University Fees<br>
$18.00
Miscellaneous Living Expenses<br>
$2,065.00
Rooming Expenses<br>
$3,240.00
Transportation Costs<br>
$1,056.00
Tuition and Fees<br>
$3,101.00
Total:<br>
$12,942.00</p>
<p>Financial Aid Award
Fund Status<br>
Second Semester 2012-13</p>
<p>Total</p>
<p>Fdrl Direct Subsidized Loan Accepted<br>
$2,500.00
$2,500.00
Fdrl Direct Unsubsidized Loan Offered
$6,000.00
$6,000.00
Federal Pell Grant Accepted<br>
$900.00
$900.00
Total<br>
$9,400.00
$9,400.00</p>
<p>@cptofthehouse @thumper1
Cost of Attendance
Book Expenses<br>
$1,250.00
Boarding Expenses<br>
$5,572.00
Direct Loan Fee
$70.00
Miscellaneous University Fees<br>
$36.00
Miscellaneous Living Expenses<br>
$2,820.00
Rooming Expenses<br>
$5,620.00
Transportation Costs<br>
$2,030.00
Tuition and Fees<br>
$6,326.00
Total:<br>
$23,724.00</p>
<p>Cumulative Loan Information as of
20-FEB-2013
Loan Type<br>
Amount</p>
<p>Subsidized<br>
$2,500.00</p>
<p>Financial Aid Award
Fund Status<br>
First Semester 2013-2014</p>
<p>Second Semester 2013-14</p>
<p>Total</p>
<p>Fdrl Direct Subsidized Loan Offered
$1,750.00
$1,750.00
$3,500.00
Fdrl Direct Unsubsidized Loan Offered
$3,000.00
$3,000.00
$6,000.00
Federal Pell Grant Accepted<br>
$1,348.00
$1,347.00
$2,695.00
Total<br>
$6,098.00
$6,097.00
$12,195.00</p>
<p>My question is why are you wanting to take out loans now for graduate school instead of reducing your loan amounts, particularly the unsubsidized loans as much as possible when :</p>
<p>1) The unsub loans are accruing interest at about 7% a year, not a neglible amount here
2) You may not end up going to graduate school
3) You can borrow for graduate school and take out the loans then. You might even be eligible for some financial aid and having those stockpiled loans could count against you in a fin aid situation. Also some grad school programs do have stipends and pay
4) Those stockpiled loans can cause you problems for future undergrad financial aid consideration as they are accumulated assets.</p>
<p>
It only make sense on Subsidized Loans, but not UnSubsidized Loans.</p>
<p>Agreed with other posters. In case you don’t see their point, $6000 unsub loan you borrow freshman year would become ~$7600 when you’re done with undergrad. Of course, it doesn’t stop there, it keeps accruing until you pay off.</p>