College loan question

[PatFitz9 10+ year member]

you're an idiot if you buy a car with student loan money

 

[Verlander]

If I have colored cousins, could I get help from the united negro foundation?

 

[Jameseypoo 5,000+ posts]

you're an idiot if you buy a car with student loan money

I know a few that have. Need some transportation during school... I don't get what everybody has against it..

 

[faulkton 5,000+ posts]

you're an idiot if you buy a car with student loan money

Not really.

If he needs a car for school it probably isn't a bad idea.

 

[Jameseypoo 5,000+ posts]

Perhaps you don't grasp the idea of a student loan.

 

[faulkton 5,000+ posts]

loL.

A student loan is probably at a lower rate than most students would get financing a car.

 

[Andrew12 10+ year member]

You can setup the loan for the check to be sent to you every semester if you don't feel responsible enough to handle a huge amount at once. Thats the road I see myself taking lol

 

[tommyk90 5,000+ posts]

I never directly received money for my loans. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

I had a perkins loan and direct government loans, and both of those went directly to the school.

I did have some outside scholarships that gave me checks though. Too bad I actually had to use them for tuition. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[Andrew12 10+ year member]

you're an idiot if you buy a car with student loan money

Y is that?

 

[Flipx99 5,000+ posts]

loL.
A student loan is probably at a lower rate than most students would get financing a car.

About .75% difference from what I pay on my student loan vs. my truck.

I pay 5.55% on my truck, 4.7% on my student loans.

 

[solidcrowd 10+ year member]

Yea i'm buying a car to get to school and both of my jobs. It's not like i'm going out and buying an new car off the lot. I was thinking of taking out a $2,500 student loan and buying a 93 tempo //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif for about $1300 (old lady driving with 52,000 miles on it) and using the rest of insurance, gas, and saving some for repairs.

But this just made me think of another idea...Your a full time student, take out a loan for a large amount (don't know what the max is), the loan interest is deffered until graduation, put the money in the bank and make interest of that, pay the loan back before the interest if possible and you make a good buck. Has this been done or possible?

 

[faulkton 5,000+ posts]

About .75% difference from what I pay on my student loan vs. my truck.
I pay 5.55% on my truck, 4.7% on my student loans.

Do you think your credit score is representative of most students?

 

[Flipx99 5,000+ posts]

But this just made me think of another idea...Your a full time student, take out a loan for a large amount (don't know what the max is), the loan interest is deffered until graduation, put the money in the bank and make interest of that, pay the loan back before the interest if possible and you make a good buck. Has this been done or possible?

Yes, it can be done, and I do it. It is a form of arbitrage. You won't make that much off of it and you will have to pay for school somehow. While I don't reccomend it, it can be done. You can do the same thing with credit cards easier, but you need to be organized.

The only way to make any real money is the subsidized portion. That is very limited amount of money. With unsubisidized loans, the interest accrues...so you can only make the delta between the two...and if the cut the rates again, you will be screwed.

The answer to this question is like "Can I build a wall o' subs". Can you, yes. But if you are asking the question you probably don't have the experience.

Do you think your credit score is representative of most students?

No. I was reinforcing your comment how it might be a good idea.

 

[faulkton 5,000+ posts]

in his case, I'm betting he would be better off just taking his student loan money to the casino....and playing poker with it.

 

[bdawson72 5,000+ posts]

I'm poor. I better qualify.