<p>I had to take out a 5,000 dollar loan for my first year of college. I am of course wary of acruing any amount of debt but at this point with grants, jobs, and help from my parents I don't really expect to even end up paying $5,000. This is sort of a funny situation I didn't expect and perhaps I am just being optimistic in my estimations but hypothetically what would one do with loan money that one just doesn't spend...?</p>
<p>If I just don't use it will nothing change? Or will I have to do something where I take it then immediatly give it back? I don't have to pay the loan back until after college soo would I have to take the money then wait till after college to give back money I never spent? </p>
<p>um this seems like a sort of silly question but I just want to make sure I don't end up making the situation mroe complicated than it has to be. I am assuming if I don't spend the money then I won't have to do anything. But I just feel like there's something specific I may have to do [as is often the case with these bureaucratic debacles].</p>
<p>haha thanks for listening if any of thismakes sense...</p>
<p>Has this money already been disbursed to your college?</p>
<p>If by “disbursed” do you mean have I paid for anything yet? </p>
<p>I start school at the end August. And as of now I have yet to pay for anything using the loan money. I was just trying to see what to plan to do if I hypothetically did not spend all of the loan money. The loan is already acquired and its in my account thourgh the college…Just not spent.</p>
<p>I’m sorry if I don’t quite understand these things.</p>
<p>Is this a loan that is paid direct to your school? Is it a private loan or a federal student loan? If it is a student loans (such as a Stafford loan) is any part of it a subsidized loan (where the govt pays the interest until you graduate) or is all/part an unsubsidized loan (where you are responsible for the interest from the day the loan is disbursed to you)?</p>
<p>I am not sure how private loans work as we have not had any, but federal student loans are not disbursed in one lump sum but in equal installments depending on your school year system - for instance if you are in a semester system you will have half disbursed in the fall and half in the spring. You should have a good idea by the end of the fall semester whether you will need the full amount each semester. If you find the part you borrowed in the fall is enough to see you through the spring then ask for the spring disbursement to be canceled. Do not borrow more than you need. </p>
<p>If you find you do not need the full amount then it would be a good idea to reduce the future amount of the loans, especially if they are unsubsidized. If they are unsubsidized you will owe interest on the amount borrowed for the length of time you have had the loan. For instance if $2500 is disbursed to you in August and the interest rate is 6.8% then after a year you will owe them roughly $2670. When you repay the loan you will also have to repay the interest. If you decide you do not need the loan then repay it as early as possible so as not to owe more interest. If part of the loan is subsidized then you will owe no interest. Both types of loans may have had origination fees which are usually deducted up front before the loan is disbursed.</p>
<p>If part of the loan is subsidized and part is not, and you find you do not need the full amount, then take as much subsidized and as little unsubsidized as you are able.</p>
<p>hm. yes. I have one subsidized and one unsubsidized loan. The part about having to repay with interest was what worried me. Using the subsidized loan first makes the most sense. I will definitely keep these things in mind. I guess worst case scenario I borrow extra money the first semester but you are right I can cancel future loans once I get a better idea. Thank you. Thank you scottaa as well :)</p>
<p>If you end up taking a sub and an unsub the first semester and find you do not need it all then 2nd semester cancel the unsub. If you do not need any of the 2nd semester sub loan take it and pay off the unsub from the 1st semester. No point paying interest if you don’t have to.</p>