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Message
Student loans
Posted on 3/5/12 at 5:34 am
Posted on 3/5/12 at 5:34 am
Have a high school Sr. who will be starting college in La. in the fall. Will definitely have to have a student loan. Are the FASA loans the best? If not, what do you students recommend?
8
Posted on 3/5/12 at 5:35 am to sowbugg
Worst kind if debt to have when hey get out. My advice is not to do it at all.
Posted on 3/5/12 at 5:46 am to 4LSU2
4lsu is right. Avoid them at alllllll cost
Posted on 3/5/12 at 5:48 am to sowbugg
quote:
Are the FASA loans the best? If not, what do you students recommend?
As far as pure students loans, yes. Have you received a financial aid package from the school yet?
In general as far as federal student loans go,
Perkins (need-based) > Stafford (subsidized) > Stafford (unsubsidized) > Direct PLUS for parents
Perkins are usually low interest loans (5%), Stafford rate is at 6.8%, and PLUS is at 7.9%.
Perkins and Stafford Subsidized do not accrue interest while in school, but perkins is need-based and there's a limit per year for the Stafford subsidized. Staff unsub and Direct PLUS accrue interest while in school.
These loans above are what will generally make-up your financial aid package from the school, unless they do in-house loan programs or scholarships.
ETA: apparently the direct subsidized Stafford for undergrads is currently at a 3.4% rate, but is subject to change next year.
This post was edited on 3/5/12 at 5:51 am
Posted on 3/5/12 at 6:05 am to Guster
Pretty much spot on. I was able to consolidate my subs and unsubs for 3.something % a few years ago.
Posted on 3/5/12 at 7:13 am to 4LSU2
quote:
Worst kind if debt to have when hey get out. My advice is not to do it at all.
What? It's likely the cheapest cash you'll ever borrow, your payments are deferred for years, and the whole debt can be cancelled 25 years out.
It's much better than going to private sources for loans, that's for sure.
Posted on 3/5/12 at 7:33 am to attheua
It's also the only debt that survives bankruptcy.
It really all depends on your situation.
It really all depends on your situation.
Posted on 3/5/12 at 8:31 am to sowbugg
I am $30,000 in student loan debt but I played college sports as a walk on so I couldn't get a job. I took out extra students loans to live like a balla and I regret it.
My advice would be:
Take out just the cost of tuition and nothing more.
Have him or her get a job to have spending money and pay rent.
-Rent a house with like 4 or 5 people to cut down on cost.
It sounds like you can't afford to purchase a home but if you can maybe it would be a good idea to do so and have his or her friends pay the rent. I have had plenty of friends in college that did this and they made out like bandits during the years that they owned the home. Free rent for your kid and the house is building equity.
Avoid taking out any loans that you do not need. I can tell you from experience that it has cost me on my debt to income ratio when I was going to purchase my first house. Not to sound like a financial Nazi but I would also monitor what your son spends on credit cards. The object is to have a degree with at least debt as possible coming out of college. That will allow him to be able to purchase a home alot quicker.
With all that having been said I wouldn't trade my college degree for anything. It is important for him/her to balance studies with partying. Partying is how you make your contacts that will benefit you later in life. Studies is the paper that will get your resume in the interview pile. The rest is up to him/her.
Good luck!
My advice would be:
Take out just the cost of tuition and nothing more.
Have him or her get a job to have spending money and pay rent.
-Rent a house with like 4 or 5 people to cut down on cost.
It sounds like you can't afford to purchase a home but if you can maybe it would be a good idea to do so and have his or her friends pay the rent. I have had plenty of friends in college that did this and they made out like bandits during the years that they owned the home. Free rent for your kid and the house is building equity.
Avoid taking out any loans that you do not need. I can tell you from experience that it has cost me on my debt to income ratio when I was going to purchase my first house. Not to sound like a financial Nazi but I would also monitor what your son spends on credit cards. The object is to have a degree with at least debt as possible coming out of college. That will allow him to be able to purchase a home alot quicker.
With all that having been said I wouldn't trade my college degree for anything. It is important for him/her to balance studies with partying. Partying is how you make your contacts that will benefit you later in life. Studies is the paper that will get your resume in the interview pile. The rest is up to him/her.
Good luck!
Posted on 3/5/12 at 1:48 pm to Bigsike
Avoid American Educational Services at all cost..
Goggle will back me up on this.
Goggle will back me up on this.
Posted on 3/5/12 at 1:57 pm to sowbugg
1. try to get a scholarship
2. consider military if you cannot afford
3. if you must take out a loan, do it, knowing you will have to pay it back since student loan debt remains even after bankruptcy
4. do not major in something stupid like singing or band and come out with 100 g in debt, you'll never pay it off (make sure your major's salary can justify the loans once you graduate)
2. consider military if you cannot afford
3. if you must take out a loan, do it, knowing you will have to pay it back since student loan debt remains even after bankruptcy
4. do not major in something stupid like singing or band and come out with 100 g in debt, you'll never pay it off (make sure your major's salary can justify the loans once you graduate)
This post was edited on 3/5/12 at 1:58 pm
Posted on 3/5/12 at 8:45 pm to joejohnson90
Thanks for all the "serious" posts. Single dad...struggling to make ends meet. Cannot go the military route due to injury. Took a BIG hit in divorce...La. divorce laws SUCK.
Posted on 3/5/12 at 8:53 pm to sowbugg
i would disagree with the folks saying it is the worst kind of debt.
any of the need based or subsidized loans are at very good interest rates.
as long as the borrower is smart enough to avoid bankruptcy then it is a perfectly valid option.
i would agree that make sure your kid
a) majors in something useful and
b) stays on track and graduates as early as possible to avoid an extra year of loans.
any of the need based or subsidized loans are at very good interest rates.
as long as the borrower is smart enough to avoid bankruptcy then it is a perfectly valid option.
i would agree that make sure your kid
a) majors in something useful and
b) stays on track and graduates as early as possible to avoid an extra year of loans.
Posted on 3/5/12 at 9:24 pm to sowbugg
1) Get approved for the loans that don't start charging interest until graduation.
1a) Just because you are approved, you don't have to use them all.
2) A major with actual economic value. Sorry, Poli Sci doesn't count.
3) 15-25 hr/week job; ideally closely related to your major. It sucks really hard working while your friends are out nailing strange, but you'll be a Baller that much sooner after college. Play your cards right and the college girls will still ride your cock well into your 20's. The college job will look real good on your resume, too.
1a) Just because you are approved, you don't have to use them all.
2) A major with actual economic value. Sorry, Poli Sci doesn't count.
3) 15-25 hr/week job; ideally closely related to your major. It sucks really hard working while your friends are out nailing strange, but you'll be a Baller that much sooner after college. Play your cards right and the college girls will still ride your cock well into your 20's. The college job will look real good on your resume, too.
This post was edited on 3/5/12 at 9:24 pm
Posted on 3/5/12 at 9:29 pm to sowbugg
Student loans aren't necessarily a problem IMHO, they can be a great investment.
The problem is that lots of students make bad decisions about what they will study and how it might apply to their careers after graduation.
Student debt is a great high risk/return deal, but there aren't many at that age who can use the subsidy very well.
The problem is that lots of students make bad decisions about what they will study and how it might apply to their careers after graduation.
Student debt is a great high risk/return deal, but there aren't many at that age who can use the subsidy very well.
Posted on 3/5/12 at 9:42 pm to foshizzle
Exactly what I was thinking, I am getting an accounting degree. I know I may never be insanely wealthy but I think I will be able to repay my loans with ease.
Posted on 3/6/12 at 9:10 am to reb13
quote:
Exactly what I was thinking, I am getting an accounting degree. I know I may never be insanely wealthy but I think I will be able to repay my loans with ease.
this
i had to take out student loans for part of undergrad and law school, but if you keep your son keeps his head on straight and busts his tail to get a good job, then paying them back shouldnt be an impossible task
Posted on 3/6/12 at 12:28 pm to Kajungee
quote:They got me
oid American Educational Services at all cost..
Posted on 3/6/12 at 12:45 pm to foshizzle
Frankly I regret not having taken out more in student loans and living a more baller life when I had the chance. Of course I don't think this advice applies equally to everyone. The problem is when you're young you have time but no money to spend and when you're old you have money but no time to spend it.
Posted on 3/6/12 at 12:52 pm to Cold Cous Cous
quote:
Frankly I regret not having taken out more in student loans...
My mom (no pics) wanted me to max out my Stafford and Perkins loans (deferred interst) and put that money in the stock market. After college when the interest started accruing I could cash out and pay them off or just make the payments as they came.
I didn't do it, but that '93-'96 timeframe would have been a good time to do it. Hell, even CD's would have been good.
Posted on 3/6/12 at 1:24 pm to Cold Pizza
One poster here claims to have done that and made out like a bandit.
I would've been too chicken, probably, but at the time CDs beat the 2.something% I'm paying right now. But what's the point of taking that money and putting in a CD to make a couple hundred bucks? You'd get more utility blowing it in Destin.
I would've been too chicken, probably, but at the time CDs beat the 2.something% I'm paying right now. But what's the point of taking that money and putting in a CD to make a couple hundred bucks? You'd get more utility blowing it in Destin.
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