Biden - should I take out student loans

amother

Floralwhite

Thu, Feb 18 2021, 8:36 am

If you would anyway be going back to school, then yes, borrow the money. 10,000 for a college degree that can lead to job advancement and higher salary is a drop in the bucket in the scheme of things.
If you are planning to borrow the money and use it for other stuff, that is not ethical, plus it may be unwise. If there is some kind of loan forgiveness, there likely will be a process and complicated application where you have to prove the money was borrowed & used for tuition. Even if you just kept the money sitting in the bank for several months, that will look very fishy. There are probably all sorts of stipulations written into the fine print of any loan, plus any loan forgiveness bill will have them, too. You don't want to be blacklisted for future loans.

You can call a college and ask your questions to the financial aid office. That's probably your best resource.
Also, it has been awhile, but in my experience, most loans get paid directly to the school...not to the individual's bank account.

amother

Thu, Feb 18 2021, 8:50 am

amother [ Floralwhite ] wrote:

You are misunderstanding.
This isn't "should I take out student loans even though I'm not in school" or "should I pretend to he a student to get loans".

When someone is a student, they get loans (a combination of federal loans depending on your eligibility) offered to them to cover the cost of attendance. There is nothing fraudulent about taking them. There is nothing fraudulent about declining them.. Cost of attendance includes more than tuition, so if your balance is paid in full, they deposit the rest into your bank account. Because its for living expenses.

amother

Floralwhite

Thu, Feb 18 2021, 9:02 am

amother [ OP ] wrote:

amother

Thu, Feb 18 2021, 9:23 am

amother [ Floralwhite ] wrote:

Your working on the premise that I'm trying to do something In a Backhanded way. I wrote a whole response to your post, explaining, but deleted it, because all your theories are so convoluted, I'll pass.

amother

Floralwhite

Thu, Feb 18 2021, 9:45 am

amother [ OP ] wrote:

No. I am trying to understand how you are expecting to borrow a student gov loan of 10,000 and get the whole thing delivered to your private bank account bypassing the college entirely, and keep it intact for several months.
That just isn't how it works. Btw, I recently finished paying off 20 years worth of gov student loans (both subsidized and unsubsidized) so please don't assume I have no clue about this.
I think you are in over your head here, tbh. Please contact the financial aid office of your college, they can walk you through this

amother

Taupe

Thu, Feb 18 2021, 9:46 am

[quote="amother [ Floralwhite ]"]Depends on the loans, I guess? My federal gov loans went straight to the college. I was able to "take out" some extra and I used it to pay for books & transportation, etc.
If you borrow 10,000 some or most of it will pay for tuition, then if you have extra you can use for living expenses. But the whole lump sum doesn't go straight to your private account. And I don't see how the college will allow themselves to be the middleman and let you take the whole sum out without first using some to pay tuition. I just really don't understand what you are planning to do. You have to be enrolled in a college to qualify for the loans, in any case. And if you are enrolled you have to register for classes or the college will drop you. And if you register for classes, you need to pay the tuition, or the college will drop you. So if you are in college and borrowing this money, some will be used for tuition, right? So it's not 10,000 just sitting in your account that you can easily give back no problem if the loan forgiveness thing doesn't work out.[/quote

OP is already in college. Her tuition is paid but she money is very tight. If your tuition is paid and you receive gov funds or any other kind of grant the college will send you a check. You may not have had this experience because your tuition was never paid in full when receiving financial aid so the money was never sent to you.

OP you can def take out the money and keep it aside to see how things play out or have a small loan of 10k which shouldn't be a problem to pay back once you have a graduate degree. Right now nothing's for certain. It's not certain if 10k will be forgiven and if it will who's 10k will be forgiven.

Another thing is I think you can only take out loans for summer semester at this point. But I'm not sure.

shoshanim999

Thu, Feb 18 2021, 9:51 am

simcha2 wrote:

He said yesterday that he is not going to forgive student loans.

How brave of him to state his intentions after the election is over. Of course he didn't have the guts to announce this during his campaign. He needed all those college votes from people who thought he was considering wiping out all their debt.

So op, Biden did announce that he'll forgive up to 10,000, so I suppose you could work work with that.

Amarante

Thu, Feb 18 2021, 9:54 am

amother [ OP ] wrote:

Re the bolded - That isn't a attitude that I as a person live by.
If it was, then I would be taking out the maximum COA like most others I know.
My attitude is that every dollar counts.
So that $10,000 could go a long way.

I'm trying to find out if there is a CON.

I guess I wasn’t clear as you misunderstood my point.

People who take out student loans of $50,000 or $100,000 or even more are taking on debt which can potentially encumber their choices for the rest of their lives. Paying back that kind of debt means many life choices will revolve around it. It may be worthwhile if one is using it for a professional career that will pay enough salary so that one can pay it back but even doctors have issues dealing with huge student loans. However that kind of loan needs to be carefully considered.

A $10,000 loan if used for tuition isn’t going to change the course of one’s life for the next 29 or 30 years. If it helps one get through school it’s a worthwhile investment in one’s future. While it is still a debt that needs to be repaid, presumably the benefits one would get from the schooling make it worth while. A student loan makes much more sense as an investment in your future than a car loan or lease as a comparison.

SixOfWands

Thu, Feb 18 2021, 10:05 am

shoshanim999 wrote:

On the presidential campaign trail, Joe Biden pledged to act on federal student loan debt forgiveness and wipe out $10,000 for all borrowers.

Last night he discussed .... forgiveness of $10,000.

amother

Thu, Feb 18 2021, 11:26 am

amother [ Sapphire ] wrote:

Hi op,
I have the same question, currently in grad school and wondering if I should take out unsubsidized loans. If we pay it back by Sept, or before the no inerest period ends, what do we stand to lose?
I'm in a low income category so I'd be eligible.
Also to those above, if you think this is sketchy, you have no idea how student loans work

THANK YOU!
Someone in the same situation as me!
I have one friend irl in the same situation as me but who is even less knowledgeable than me.

amother

Thu, Feb 18 2021, 11:28 am

[quote="amother [ Taupe ]"]

amother [ Floralwhite ] wrote:

Depends on the loans, I guess? My federal gov loans went straight to the college. I was able to "take out" some extra and I used it to pay for books & transportation, etc.
If you borrow 10,000 some or most of it will pay for tuition, then if you have extra you can use for living expenses. But the whole lump sum doesn't go straight to your private account. And I don't see how the college will allow themselves to be the middleman and let you take the whole sum out without first using some to pay tuition. I just really don't understand what you are planning to do. You have to be enrolled in a college to qualify for the loans, in any case. And if you are enrolled you have to register for classes or the college will drop you. And if you register for classes, you need to pay the tuition, or the college will drop you. So if you are in college and borrowing this money, some will be used for tuition, right? So it's not 10,000 just sitting in your account that you can easily give back no problem if the loan forgiveness thing doesn't work out.[/quote

OP is already in college. Her tuition is paid but she money is very tight. If your tuition is paid and you receive gov funds or any other kind of grant the college will send you a check. You may not have had this experience because your tuition was never paid in full when receiving financial aid so the money was never sent to you.

OP you can def take out the money and keep it aside to see how things play out or have a small loan of 10k which shouldn't be a problem to pay back once you have a graduate degree. Right now nothing's for certain. It's not certain if 10k will be forgiven and if it will who's 10k will be forgiven.

Another thing is I think you can only take out loans for summer semester at this point. But I'm not sure.

Thank you!
If it won't be forgiven, I can just pay it back come September. (And be out $100)
I checked - I can still take the loan for Spring.

amother

Thu, Feb 18 2021, 11:32 am

shoshanim999 wrote:

SixOfWands wrote:

On the presidential campaign trail, Joe Biden pledged to act on federal student loan debt forgiveness and wipe out $10,000 for all borrowers.

Last night he discussed .... forgiveness of $10,000.

Please keep politics out of this.

Yael agreed to keep it open if we avoid politics.

Thank you.

amother

Thu, Feb 18 2021, 11:37 am

Amarante wrote:

Im still confused by your posts.
The way I view it, if I have to pay $10,000 less towards a graduate education that in total costs deep into the six figures, what's the harm exactly?

Also, 10k may not impact the next 20-30 years in the long run, but it can surely impact the next few years.

Amarante

Thu, Feb 18 2021, 12:46 pm

amother [ OP ] wrote:

Honestly I am not sure where the disagreement is.

My point is that if one has to take out a loan of $50,000 or $100,000 or even more, then one should be very sure that the investment in the education is worth it because that amount of loan will take years to pay off and if the education is not for a specific well paid profession you will be saddled with debt for the rest of your life and it will impact your ability to buy a home or support a family.

A loan of $10,000 for education is pretty minimal. It is pretty easily paid off in a relatively short period of time. That is what I meant by not being "life changing" because it isn't an albatross following you around for the rest of your life. If you need to borrow $10,000 for education, then why not as opposed to the kind of decision to make when borrowing huge amounts for education.

Assuming the $10,000 is for a college degree there are so many positives in terms of getting a college degree even if it isn't a totally career oriented major as college graduates over the course of a lifetime earn more and have more career stability. It's a small investment that would pay off for almost anyone.

amother

Sapphire

Thu, Feb 18 2021, 3:47 pm

amother [ OP ] wrote:

THANK YOU!
Someone in the same situation as me!
I have one friend irl in the same situation as me but who is even less knowledgeable than me.

Same, nobody irl in same situation. I didn't know I can still take out for spring, that's good to know! Especially bec cost of attendance for summer is much lower
I've also already paid for the semester, so the money wound come to me.
I think it's worthwhile, 10k would be so helpful right now! Just need to be careful to set aside money to pay back the loan if he doesn't forgive it...really hope he does!

amother

Thu, Feb 18 2021, 4:53 pm

amother [ Sapphire ] wrote:

I checked my portal and I still have time.
Check yours.