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Started By
Message
LSU Tuition on credit
Posted on 8/6/14 at 12:07 am
Posted on 8/6/14 at 12:07 am
I'm sure this has been discussed ad naseum on here but I'll give it a shot.
I've never had a credit card, really don't know much about how they work. I need to pay tuition for one semester at LSU (~$4500) but can only pay about $1500 at the moment.
I'm planning on paying in installments using their deferred payment plan.
I'd need to pay half upfront ($2250) and then pay the rest in three installments over the course of the semester.
Would it be advisable for me to get a credit card and pay the remaining $1000 on it?
What would be the best card for me to get?
How does interest and monthly payments work on something like this?
Thanks ahead of time- again, I know I sound like a totally noob at life and I'll be going to my bank tomorrow to talk about my options but I thought I could get some valuable input from some TD ballers.
I've never had a credit card, really don't know much about how they work. I need to pay tuition for one semester at LSU (~$4500) but can only pay about $1500 at the moment.
I'm planning on paying in installments using their deferred payment plan.
I'd need to pay half upfront ($2250) and then pay the rest in three installments over the course of the semester.
Would it be advisable for me to get a credit card and pay the remaining $1000 on it?
What would be the best card for me to get?
How does interest and monthly payments work on something like this?
Thanks ahead of time- again, I know I sound like a totally noob at life and I'll be going to my bank tomorrow to talk about my options but I thought I could get some valuable input from some TD ballers.
4
Posted on 8/6/14 at 12:26 am to ManBearTiger
quote:
Would it be advisable for me to get a credit card and pay the remaining $1000 on it?
Not just no, but hell no.
How will you pay off the bill, while still getting enough to pay for next semester?
Posted on 8/6/14 at 5:44 am to ManBearTiger
It all depends on the interest rate. Most cards have an interest rate that is abominably high and you will regret having done so.
That said, it's possible that you'll see a card out there with a "teaser" rate, e.g. "only 0% APR for x months". They're saying that you can carry a balance for x month for free. That sounds nice but remember that you must pay off that balance after x months or that rate spikes up again and you will be screwed.
Cliff's Notes: If you know how to handle it and have the income, sometimes it's a valid option. If not, stay away. And since you're new to this I wouldn't take the chance.
That said, it's possible that you'll see a card out there with a "teaser" rate, e.g. "only 0% APR for x months". They're saying that you can carry a balance for x month for free. That sounds nice but remember that you must pay off that balance after x months or that rate spikes up again and you will be screwed.
Cliff's Notes: If you know how to handle it and have the income, sometimes it's a valid option. If not, stay away. And since you're new to this I wouldn't take the chance.
Posted on 8/6/14 at 6:46 am to foshizzle
When I first bought my house, I got the Citi Diamond Preferred card (I think that's what is called). 21 months interest free. I was doing a lot of work on the house and didn't have much of a safety net yet. You can get that and make $100 per month payments. But first you have to qualify and know that you must pay it off before interest hits or its not worth it. I paid mine off every month, but liked knowing I didn't have to. It's got pretty terrible rewards though, so I don't use it now that the interest had kicked in. Did it purely because it was the longest interest free I could find.
Posted on 8/6/14 at 9:01 am to KG6
Not such a good idea...it simply delays the inevitable. Go to the bank and see if they'll give you a short-term (6 mo) loan for your tuition at a decent interest rate. Pay monthly installments to the bank. Before you sign up for the deferred tuition plan, see if your bank's interest rate for the entire amount is a better deal than LSU's deferred-rate plan.
But you need to think about next semester: how are you saving to pay that tuition if you're still paying off this one? Or is this your last semester?
But you need to think about next semester: how are you saving to pay that tuition if you're still paying off this one? Or is this your last semester?
Posted on 8/6/14 at 9:48 am to hungryone
quote:
But you need to think about next semester: how are you saving to pay that tuition if you're still paying off this one? Or is this your last semester?
Last semester.
Posted on 8/6/14 at 10:08 am to ManBearTiger
I don't see a problem with it. You sound responsible. Try to get one with a low APR, then pay what you can each month until it's paid off. And be carful not to use it on things you don't need.
I don't know why this would be any different than getting a loan from the bank.
I don't know why this would be any different than getting a loan from the bank.
Posted on 8/6/14 at 10:34 am to ManBearTiger
Any reason for not taking out an unsubsidized loan and using the 6 month grace period after graduation to pay it back? I didn't have to use them so I'm not familiar, but I know my fiance has. Or are you just trying to build some credit?
Posted on 8/6/14 at 11:24 am to LSUShock
The interest on student loans runs even while you're in school. So even though you don't have to pay, you're still getting charged compared to an interest free card.
Posted on 8/6/14 at 12:23 pm to KG6
Damn, looks like I need to dig a little deeper into my fiances student loan financials. She acts like she has it under control, but I need to make sure
Posted on 8/6/14 at 12:43 pm to ManBearTiger
If you can find one with 0% introductory APR, this would be a great idea
Look at Discover, mine was like 14 months free at first
Look at Discover, mine was like 14 months free at first
Posted on 8/6/14 at 12:59 pm to LSUShock
Same thing happened to me. She thought she took out X amount, so when she started paying, she would have a balance of $X. She didn't realize that interest had been rolling for 6 years on some of her loans (4 years undergrad, 2 years masters). It was tough on our relationship for a while until we came to terms with it and put a plan in place to get it paid off.
Posted on 8/6/14 at 1:42 pm to KG6
Glad I caught you in this thread. Just saw that you mentioned that early on. I didn't take out a single student loan so I am oblivious to the process. My thought process was the interest didn't kick in until the 6 months after graduate, which thinking about it makes no sense. Fortunately it's only 2 years worth and this coming semester, but I will definitely be sorting all that out.
Posted on 8/6/14 at 4:55 pm to LSUShock
quote:
Glad I caught you in this thread. Just saw that you mentioned that early on. I didn't take out a single student loan so I am oblivious to the process. My thought process was the interest didn't kick in until the 6 months after graduate, which thinking about it makes no sense. Fortunately it's only 2 years worth and this coming semester, but I will definitely be sorting all that out.
For Stafford loans, the interest is subsidized while you are enrolled as a student, but there are pretty low dollar limits. I did one for a semester in law school in order to build up some credit history and then paid it off immediately.
Posted on 8/6/14 at 6:38 pm to deSandman
Ok, I'm 90% positive she has subsidized loans which confirms my initial though. I believe she has 6 months after graduation until the 8-9% interest rate kicks in.
Posted on 8/6/14 at 8:55 pm to KG6
quote:
When I first bought my house, I got the Citi Diamond Preferred card (I think that's what is called). 21 months interest free. I was doing a lot of work on the house and didn't have much of a safety net yet.
Oh, I did something similar. A card offer conveniently came in the mail for 0%APR for 24 months and 5% rewards points at Home Depot. It so happened I was about to do a $40K remodeling job, this saved me over two grand. But I was absolutely sure to set aside money to pay it off when the 24 months ran out.
A student may not have the income to do that. And I don't recommend that with no budgeting or cash management experience do it either.
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