TA-ing this fall

[Roccoriel]

So, I received a TA for this year, but because I filled out FAFSA, I also received loans. Now, the TA-ship will allow me to make more than I've made in previous years (as I was working more-or-less part time as a Masters student). If I know I can eat properly and remain in my apartment on the TA-ship, is there any reason I should take the loans? I have a lot of money out in loans already, and I would seriously like to not take any more out!

Thanks for your help!

[runonsentence]

Do you have any kind of cushion (money in savings)? If not, a loan could be a good idea so that you have rainy day money—especially if you've got a student loan offer with low interest. If your car were to die in a month, for example, and you didn't have a money cushion to get you through repairs, you might get stuck taking out a last-minute loan from a bank or private lender at a less favorable rate.

[spctle342]

Do you have any kind of cushion (money in savings)? If not, a loan could be a good idea so that you have rainy day money—especially if you've got a student loan offer with low interest. If your car were to die in a month, for example, and you didn't have a money cushion to get you through repairs, you might get stuck taking out a last-minute loan from a bank or private lender at a less favorable rate.

I'm only an undergrad, but I'm of the mindset that there's not much harm in taking out a little extra loan-wise, just in case. I always have, and though I don't believe I've ever touched it, I love the reassurance of knowing it's there for any unanticipated crises that may arise. It's definitely preferable to taking out a high interest loan elsewhere in the event of an emergency, and if you don't spend it, you can always just pay it back immediately and not worry about languishing in additional debt.

[Roccoriel]

I do have some money in savings, so I feel pretty okay with that, especially since I will be making more that I previously was and shouldn't have any new expenses. The school won't care whether I take the loans out or not, correct? I just don't want to step on toes

[runonsentence]

Funding through TAships and the like is based on merit, not financial need, so I don't see why your university would ever need to know how you're paying for things (or why they'd care). So if you would like to take out the loan for the extra cushion, do it; if you think you're going to be fine without it, then don't.

[Lustforlife]

So, I received a TA for this year, but because I filled out FAFSA, I also received loans. Now, the TA-ship will allow me to make more than I've made in previous years (as I was working more-or-less part time as a Masters student). If I know I can eat properly and remain in my apartment on the TA-ship, is there any reason I should take the loans? I have a lot of money out in loans already, and I would seriously like to not take any more out!

Thanks for your help!

Taking out loans for a PhD is almost always a bad decision (although sometimes it is absolutely necessary). Even if the loans are subsidized, there are still times when they might hurt you. If you ever have to go on leave, for example, you would no longer be a student and would have to pay back your loans.

Your department should be happy that you aren't taking out loans. They are supporting you with a TAship and are most likely expecting that this is enough to cover your living expenses.

Edited June 14, 2011 by Lustforlife