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I entered college not really knowing what to do with regards to how to manage tuition and school finances. I had the idea that every student didn't have the ability to pay their own tuition in its entirety and that they would always need grants, scholarships and school loans.

Now that my financial sense has been upgraded, I regret not taking all the subsidized Stafford loans to the maximum amount possible. My first and second years, I borrowed just enough to pay off tuition, including grants and scholarships. This school year, my sister also entered college so I received much more financial aid and thus, didn't need to take any loans.

Subsidized Stafford loans require repayments half a year after graduation with an interest rate of less than 5%. I checked my college financial aid account and realized that I could have borrowed more than $5000 per year. Even if I didn't need it for tuition, I regret not taking it so I can put it in my HSBC direct online savings account.

It is much better than taking advantage of 0% Balance transfer credit cards since I do not have to pay every month and I could hold the money for more than a year. So this coming year, I'll consider taking the full amount of my loans and making some money from high-yield interest savings, despite the falling rates.

1 comments

Experts on Credit said... @ May 16, 2008 at 1:33 PM

I can see how you might view student loans as an investment opportunity. But let me tell you, it doesn't feel too good to graduate from college and owe multiple thousands of dollars on loans. It's like starting your adult life in debt.

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