Should I accept the full amount of my student loan offer?

Question

I have been accepted as a graduate student into a masters program and have just received my student loan offer of $19,350 for the upcoming academic year. The loan offer was a combination of direct subsidized, direct unsubsidized, and a tuition grant through my graduate university.

The cost of attendance (tuition, fees, insurance, and books) will only be about $6500-$7500 for the academic year. However, I will also be responsible for all of my own living costs such as rent, utilities, groceries, gas, and car insurance. I also have a few small credit card balances left over from my undergraduate years to pay off. We'll use $1500/month as a generous estimate of these expenses.

I do intend on continuing to hold a part time job while attending graduate school to offset some of the costs, working between 20-30 hours a week if my schedule allows. Through this, I expect to be able to pocket between $600-$900/month. I would really prefer not to seek assistance from my parents, as they paid for most of my living costs throughout undergrad and they still have my younger brother to put through school.

My question is: although I highly doubt I will need the full amount of the student loan offer so long as I continue to work part-time, should I accept it anyways? Two reasons that I would even consider accepting the entire offered amount are 1) in case I could not find or continue to work my job due to school, illness, or other circumstances, and 2) any money left over after attendance and living costs (costs which would hopefully be further offset by holding a part-time job) would be set aside in a separate bank account with the sole purpose of repaying the loan OR be applied towards the next academic year so that I could afford to accept a smaller loan for my final year of graduate school.

Do you think I should accept the full amount of the student loan offer? At least for the first year anyways? Why or why not?

Answer 1

While taking the full amount might seem wise right now, you will hate yourself for it when you start paying it back.

Answer 2

Seems reasonable, with the government cutting costs, it would be nice to accept the full amount as long as you are certain that you will put the excess away for the sole purpose of applying it towards your second year or repaying the loan. just remember that if you file the next year, you have to report that amount you have in the bank if its in your name since it is considered an asset. and depending on how much it is it could significantly reduce your loan award for the next year. I thought about doing it also but its better to calculate your expected expenses and only accept what you will need. a little extra won't hurt just in case of an emergency or you don't get that part time job you want. as a full time student without parental support, you should consider cutting expenses and living on a tight budget but I'm sure after 4 years you already know how to so I'm not gonna get into it. good luck!!

Answer 3

Being categorized as depending or self sustaining for economic help has no longer something to do which includes her residing on her own or paying her own prices. commonly, till someone is 24 years previous, married, has youthful little ones they help, is an orphan or a ward of the court docket, earns a bachelors degree or some extra uncommon issues, they're depending and ought to record the moms and dads income on the fafsa. In different words, receipts are unlikely to help her. faculties that do not have the privilege of accepting federal pupil loans aren't any more a sensible selection for her any way... there are a million the reason why a school isn't allowed to get federal money and none of them are good. detect a real college.

Answer 4

NO...I say if you can take the program online and live at home with your parents and focus on paying off debts with monies you earn from your job you'd be way ahead of game and happier too. While saving all those living on your own expenses and thousands taking the program online as well as interest charges accruing on your debts now. You'd be Creating mental and financial stability now for your future later. IS the wise thing to do.....Borrow the least amount needed + only when needed. also pay them off as fast as u can.

Answer 5

In my opinion, the higher cost of interest in accepting the full amount outweighs the benefit of having a "just in case" fund.