Taking out student loans to pay for a nice apartment

[Hugo85]

1) Take out federal loans to pay off a credit card debt?

Considering a credit card usually have pretty steep interest rates, I'd say that would be a good idea

2) Take out federal loans to pay for rent? In a nice apt that I otherwise couldn't afford?

I figure I can work my you know what off during grad school, but all in all probably won't amount to enough to pay for a 1BR apartment.

Who the heck wants to live with roommates when you can have a place to yourself??

Anyone planning on taking out student loans to pay for living expenses? Is this normal?? Help!!!

Estimate how much you'd be in debt with a nice apartment versus a bad one versus with a roommate. You will have to pay back 3-5 years of extra rent plus compound interests. if it's feasible and you don't mind finishing your PhD with a car's worth to extra debt then by all means go ahead.

[RNadine21]

I wouldn't rag too much on not wanting a roommate, I personally will never under any circumstances consider having one again after the terrible experiences I've had in college. I am planning on going to school in DC and will have to budget at least $1500/month for a decent studio apartment, now I'm sure I might be able to save some money if I had a roommate but the hassle is NOT worth it for me. I have had 2 years of hell being forced to live with the people I do now, things are so bad that we can't even be in the same room together. One of them even committed fraud by making unauthorized charges to my bank account. Everyone I know has had awful experiences with roommates, you start out liking each other and then end up trying not to kill each other. I think as an adult you need your own space and I am prepared to pay whatever I have to to get it, so I totally understand that argument.

I'm sorry that you're having a bad experience with your roommates, butthat's not always the case. I've definitely had bad roommate experiences, but I've also had really good ones. Growing up in DC (and having friends who stayed there for college), I feel like it's really hard to live by yourself without a decent pay check. Can you perhaps split a place with just one other person? I went from living with three other people to one, and I definitely feel like I have more space since I'm only working around one person's schedule (with three people there was a large chance that someone was always around). I'm just wondering if the extra debt is worth it. Only you can answer that; if it really is then go for it.

[Neurone]

A studio apartment in NYC for $1200?! Certainly not in Manhattan, right? Or even Brooklyn...maybe Astoria? I paid almost that for a teeny tiny room in a 3 BR apartment in Manhattan. The cheapest studio or one-bedroom I ever heard of in Manhattan, outside of Harlem/Washington Heights, was $1800.

One of the many reasons I left...

That would be an amazing find! My younger 1st year med student room mates are currently having a party and I'm now looking at new apartments. The good thing about my institution is that we have a lot of subsidized housing (studios, etc.); NYC rent is absurd.

[Fromageball]

I wouldn't rag too much on not wanting a roommate, I personally will never under any circumstances consider having one again after the terrible experiences I've had in college. I am planning on going to school in DC and will have to budget at least $1500/month for a decent studio apartment, now I'm sure I might be able to save some money if I had a roommate but the hassle is NOT worth it for me. I have had 2 years of hell being forced to live with the people I do now, things are so bad that we can't even be in the same room together. One of them even committed fraud by making unauthorized charges to my bank account. Everyone I know has had awful experiences with roommates, you start out liking each other and then end up trying not to kill each other. I think as an adult you need your own space and I am prepared to pay whatever I have to to get it, so I totally understand that argument.

I decided to get roommates(ended up with 3) in grad school and liked them at first, but it went downhill fast. I'm sure I had a somewhat unusual experience(moved abruptly 2 months into the first lease, and kicked another roommate out a few months later, etc), but last month I finally got my own apartment and still think I am recovering from the last 14 months or so. I will never have roommates again while I am in graduate school(and hopefully not after I'm done either). For me, the problem seemed to be that everyone wanted to live with roommates to save on costs, but when it came to actually sharing a space with others, there was a "screw everyone I'm doing what I want because I pay rent" attitude. I'm also in the DC metro area and was prepared to shell out $1500 for my own apt if necessary but luckily got a uni-subsidized studio for $900 including utilities. I feel like that's my bit of luck for having such a crappy year otherwise. Anyway, not everyone has that type of experience, but for me it's just not worth the risk again. I'd rather live in my car...

[bigskybear]

To follow up on one of the posters concerning what your federal student loans can be used for, here's the relevant section from the standard promissory note (I signed mine yesterday):

5. Use of your loan money. You may use the loan money you receive only to pay for your authorized educational expenses for attendance at the school that determined you were eligible to receive the loan.

Authorized expenses include the following:

· Tuition

· Room

· Board

· Institutional fees

· Books

· Supplies

· Equipment

· Dependent child care expenses

· Transportation

· Commuting expenses

· Rental or purchase of a personal computer

· Loan fees

· Other documented, authorized costs

[shaydlip]

Wild vodka driven weekend in Vegas to forget the frustrations you had with your thesis work that quarter?

I don't know man, a wild weekend here and there can definitely relieve some tension!

Anyway, back on topic. You can take out $8500 subsidized loans, and I thinhk $5000 unsubsidized loans. After that, I don't know that you can take any money from the government (because now all the loans are direct, which means a MUCH SMALLER loan fee...).

You have to decide for yourself what you feel is worth it. Take a look at how much in loans you will have to take out, and what the monthly payments are. Then look at the chronicle of higher education and determine what your salary might be once you finish grad school. Do your monthly payments mean that you will have to get a roommate once you graduate? Then it's NOT worth it!

[TheDude]

I think that I'm taking out loans to help subsidize housing in addition to whatever package I might be fortunate enough to receive, if any. This is if I end up in the Boston area. I don't want roommates I don't know while starting grad school. If I need to get some later so be it. I just think the debt would be justified by a lack of stress and personal fulfillment.