Law School Discussion

Has Anyone Been Offered a FinAid Package Yet?

almuhajaba

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #30 on: March 04, 2006, 04:11:17 PM »
um...isn't that borrowing on the margin? Isn't that why people jumped off of buildings when the stock market crashed?

don't do it.

cyberrev

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #31 on: March 04, 2006, 04:16:21 PM »
no its not borrowing on margin.

margin is where you can lose the principal, plus your house, etc.

again, there is no interest payable until after you graduate.  youre not spending any of the principal here.  it's 3 years worth of government money that you can invest -- i didnt say put it in the stock market -- even simple interest of 3.5% is still free money.

upNdown

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Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #32 on: March 06, 2006, 08:38:09 AM »
no its not borrowing on margin.

margin is where you can lose the principal, plus your house, etc.

again, there is no interest payable until after you graduate.  youre not spending any of the principal here.  it's 3 years worth of government money that you can invest -- i didnt say put it in the stock market -- even simple interest of 3.5% is still free money.

I'm no financial wiz, but I don't see how this can work.  The interest isn't payable until after you graduate, but it continues to accrue.  For 2006-2006, the rate was 4.7%.  I don't know of any safe investments that would pay more than that.  The best 18 month CD rate i could find was 4.86%.  I'm sure there are plenty of risky investments that could pay a better %, but you'd be crazy to risk money that isn't yours on an investment that could fail.  Then again, if you're stupid enough to do something illegal like using student loans for investments, while in LAW school, then you probably wouldn't mind the risk. 

cyberrev

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #33 on: March 06, 2006, 10:13:03 AM »
it's not illegal by the way. 

did you read the sub/non-sub contracts, or are you just guessing?

just because you borrow it doesnt mean you have to spend it.

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #34 on: March 06, 2006, 10:16:00 AM »
didn't the rate go up to 6.87 or something for 06-07?

no its not borrowing on margin.

margin is where you can lose the principal, plus your house, etc.

again, there is no interest payable until after you graduate.  youre not spending any of the principal here.  it's 3 years worth of government money that you can invest -- i didnt say put it in the stock market -- even simple interest of 3.5% is still free money.

I'm no financial wiz, but I don't see how this can work.  The interest isn't payable until after you graduate, but it continues to accrue.  For 2006-2006, the rate was 4.7%.  I don't know of any safe investments that would pay more than that.  The best 18 month CD rate i could find was 4.86%.  I'm sure there are plenty of risky investments that could pay a better %, but you'd be crazy to risk money that isn't yours on an investment that could fail.  Then again, if you're stupid enough to do something illegal like using student loans for investments, while in LAW school, then you probably wouldn't mind the risk. 

upNdown

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Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #35 on: March 06, 2006, 10:17:28 AM »
it's not illegal by the way. 

did you read the sub/non-sub contracts, or are you just guessing?

just because you borrow it doesnt mean you have to spend it.

Call it an educated guess.  In the FAQ section of staffordloan.com it says:

Q: What can I use a Stafford Loan for?
A: Stafford Loans can be used towards the total cost of education - tuition, room and board, books, and other education-related expenses.

I haven't read any contracts because I haven't received a stafford loan yet.

cyberrev

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #36 on: March 06, 2006, 10:27:38 AM »
didn't the rate go up to 6.87 or something for 06-07?

no its not borrowing on margin.

margin is where you can lose the principal, plus your house, etc.

again, there is no interest payable until after you graduate.  youre not spending any of the principal here.  it's 3 years worth of government money that you can invest -- i didnt say put it in the stock market -- even simple interest of 3.5% is still free money.

I'm no financial wiz, but I don't see how this can work.  The interest isn't payable until after you graduate, but it continues to accrue.  For 2006-2006, the rate was 4.7%.  I don't know of any safe investments that would pay more than that.  The best 18 month CD rate i could find was 4.86%.  I'm sure there are plenty of risky investments that could pay a better %, but you'd be crazy to risk money that isn't yours on an investment that could fail.  Then again, if you're stupid enough to do something illegal like using student loans for investments, while in LAW school, then you probably wouldn't mind the risk. 


1.7% + 91 day t-bill rate.  still 4.7 as far as i've heard

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Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #37 on: March 06, 2006, 10:32:50 AM »
I'll refer you again to staffordloan.com's stafford faq section.

Remember - a Stafford Loan is a variable rate loan - it changes every July 1, regardless of when you took the loan out.

So it will change for next year, in July.

cyberrev

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #38 on: March 06, 2006, 10:34:07 AM »
it's not illegal by the way. 

did you read the sub/non-sub contracts, or are you just guessing?

just because you borrow it doesnt mean you have to spend it.

Call it an educated guess.  In the FAQ section of staffordloan.com it says:

Q: What can I use a Stafford Loan for?
A: Stafford Loans can be used towards the total cost of education - tuition, room and board, books, and other education-related expenses.

I haven't read any contracts because I haven't received a stafford loan yet.



Q: Our schedule shows a Stafford loan amount available to us each semester. If we have resources to pay tuition and do not need to access any Stafford loans for that particular semester, can we skip a semester of borrowing the Stafford loan?
A: You can't skip a semester, but you can skip a year. If you receive funds and you don't need them, call your lender and arrange for a payment back to the lender.

according to financial aid, loans for a year do not need to be used in the year.  they can be 'banked' against unexpected expenses, bar exam courses, or other needs.

i mean logically, if you received 9250 in the first semester, and dont spend it all right away, are you supposed to hide it under your mattress?  

cyberrev

Re: Has Anyone Been Offered a FinAid Package Yet?
« Reply #39 on: March 06, 2006, 10:37:32 AM »
I'll refer you again to staffordloan.com's stafford faq section.

Remember - a Stafford Loan is a variable rate loan - it changes every July 1, regardless of when you took the loan out.

So it will change for next year, in July.

so consolidate and lock in a 3.5%, no origination fee loan.