I’m a second semester sophomore, with about 6,000 in loans so far.I get a bill every semester stating I dont have to pay the loan until graduation, but I owe about $250 in interest, should I just go ahead and pay the interest on my student loan?Will it help or hurt me in the long run?
2007-02-06 02:40:23 · 7 answers · asked by Gifted and Gracious 3 in Education & Reference ➔ Financial Aid
If you can put that money in a savings account, it'll be great.
A lot of students are spending their loan in stupid expenses : iPod, Cell phone, Sport event tickets, Nice cars, etc.
As of today, they look hot.
But in a few years, when they'll call for bankrupt, you'll be laughing !
So... save money, earn interests, pay back you loan as fast as you can.
Good luck !
2007-02-07 06:17:58 · answer #1 · answered by carlos 5 · 1⤊ 0⤋
This depends upon the type of loan you have. If you have a federally subsidized student loan, such as a Stafford Subsidized loan, the government is paying your interest for you while you are in school and for a six month "grace period" after you leave school so there is no reason for you to pay it.
If you have an unsubsidized loan then you should check with your lender to determine if the interest is being added to your balance each month so that on the following month you are paying interest on the new balance which includes the interest from the previous month. If this is the case then you should ask your lender how you can make interest-only payments.
2007-02-14 01:51:17 · answer #2 · answered by Len Dozois 1 · 0⤊ 0⤋
Financially, it depends on several factors. If you are have an income, then it depends on the rate of return you can expect in another investment. (i.e. the stock market) If your interent rate for the loan is less than the rate of return on another investment, then it would benefit you to invest your money elsewhere and start paying on your loan after you graduate.
2007-02-06 04:58:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It will help you in the long run. You do not have to pay it but it will be less money you pay in the long run.
2007-02-11 16:44:47 · answer #4 · answered by somg_93 2 · 0⤊ 0⤋
No, it won't hurt you to pay it, but I would rather just wait until after graduation and not worry about it now, save your money or go shopping!
2007-02-06 04:23:54 · answer #5 · answered by dragonlover 2 · 0⤊ 1⤋
It will help you in the long run if you can afford to pay for it now.
2007-02-06 02:50:02 · answer #6 · answered by Tami B 1 · 2⤊ 0⤋
THE EARLIER THE BETTER.
2007-02-06 03:40:43 · answer #7 · answered by Kwadwo B 4 · 0⤊ 0⤋