Loans....

[burntcheezits]

How many people are taking out or considering taking out loans for grad school? I've received a decent stipend, but feel like I might need loans on top of that in order to live more comfortably. (I need to buy a car, etc. for where I'm going..) I feel like most people are just sticking with their stipend and roughing it out, but I've been "roughing" it the past 4 years for undergrad....anyone else in the same boat?

[wantaphd]

I'm pretty sure I'll be taking out loans to supplement my stipend. I already have a car note and a few credit cards; I doubt that my stipend will stretch far enough to cover all of my expenses.

[michigan girl]

Do you recommend taking out (let's say $10,000) loan to cover housing and other educational-related expenses?

[rising_star]

Personally, I don't recommend it. I think a lot of people take out small loans in the first year to make sure they have enough money to cover all their expenses (plus, there can be a long gap between when you start and your first paycheck, depending on the program). I guess the amount really depends on the cost of living where you are but $10K where I live now and where I did my MA would almost double my total annual rent and utilities.

[Stories]

If you take out only a small portion in Federal Direct Subsidized loans, they are interest-free the duration the loan is in deferment (6mo. post graduation). So if you don't mind paying back money slowly over the time you're in school, go for it. Otherwise, I say just rough it and wait till your car payment is over.

I'll be coming into school with 2 years left on my car loan, and I've budgeted to have just enough left over each month to save a small portion.

[ElusiveMuse]

I think for some people, a small loan at the onset is inevitable. It isn't free to pick up and move to a new location. Besides the expense of the move itself, there are deposits and things you have to consider.

[rising_star]

I think for some people, a small loan at the onset is inevitable. It isn't free to pick up and move to a new location. Besides the expense of the move itself, there are deposits and things you have to consider.

Yea, but if we're talking federal student loans, they aren't going to be disbursed until either the first day of class or the end of drop/add. So, that money isn't really available to help you move. That said, you could charge all moving expenses (though it'd be hard to charge a security deposit and first month's rent since most landlords don't accept credit cards, unless you use one of those checks they mail you which come with an awful interest rate) and then use the loan money, once you get it, to pay off the cards. You may end up paying a month or more of credit card interest in that case.