GRAD PLUS Questions and Answers 2007

[dcforlife]

Here's another question I have re GradPLUS loans:

So I've qualified for this loan, effectively meaning that a lender will cover my school's entire estimated budget (less grants, staffords, etc., etc.).

My question is that I think the school's estimated budget is a little bit larger than I actually need. I can easily lower the number, but I'm afraid that if I miss something in factoring my living expenses for 9 months into the future that I could be left eating cold beans out of a can.

As of right now my inclination is to just run w/ the estimated budget because I'm a 0L and don't know how my lifestyle will change come law school, then come the summer b/t 1L and 2L I can make a more accurate decision in deciding my FinAid for next year.

Any advice/comments are welcome.

I think your inclination is a good one -- I'm doing the same. I've figured I don't need about $10,000 the budget allows me to take, but I really don't know what'll happen, so I'm going to take it and stash it in a high-yield savings account (ING Direct is 4.5%, Citibank is 4.75%, eTrade is 5.05%, etc).

So, while I'll be getting charged interest by the loan lender, I'll be getting paid interest as well by my savings account. When all's said and done, even if I don't ever end up needing the money, having it sit there will only cost me about $300-$400 and that's fine by me considering the magnitude of what I'll end up paying for law school.

The only problem would be the temptation to touch it and get a plasma TV or go on a trip or something. It'll be hard to resist spending it but it's obviously critical that you/I do resist it... that's why things like ING Direct where it takes a few days to get at the money might be better for some.

[Le Docteur De Peste]

Here's another question I have re GradPLUS loans:

So I've qualified for this loan, effectively meaning that a lender will cover my school's entire estimated budget (less grants, staffords, etc., etc.).

My question is that I think the school's estimated budget is a little bit larger than I actually need. I can easily lower the number, but I'm afraid that if I miss something in factoring my living expenses for 9 months into the future that I could be left eating cold beans out of a can.

As of right now my inclination is to just run w/ the estimated budget because I'm a 0L and don't know how my lifestyle will change come law school, then come the summer b/t 1L and 2L I can make a more accurate decision in deciding my FinAid for next year.

Any advice/comments are welcome.

I think your inclination is a good one -- I'm doing the same. I've figured I don't need about $10,000 the budget allows me to take, but I really don't know what'll happen, so I'm going to take it and stash it in a high-yield savings account (ING Direct is 4.5%, Citibank is 4.75%, eTrade is 5.05%, etc).

So, while I'll be getting charged interest by the loan lender, I'll be getting paid interest as well by my savings account. When all's said and done, even if I don't ever end up needing the money, having it sit there will only cost me about $300-$400 and that's fine by me considering the magnitude of what I'll end up paying for law school.

The only problem would be the temptation to touch it and get a plasma TV or go on a trip or something. It'll be hard to resist spending it but it's obviously critical that you/I do resist it... that's why things like ING Direct where it takes a few days to get at the money might be better for some.

That's a very good idea, I might have to follow suit!

Perhaps a CD would help curb the temptation, bc of the penalties associated w/ an early withdrawl?

[The Poster]

wait, why not just wait...and borrow more if and when you need it? you can do that i believe.

[Quail!]

So I just got an email saying I was approved for a PLUS loan, though I didn't specifically fill out an app for one....this came in pretty close proximity to my going decision at GULC. Am I reading waaaaay too much into that email?

[dcforlife]

If it was from the College Board Education Loan Program, then yes

[Quail!]

If it was from the College Board Education Loan Program, then yes

Haha damnit! I'm just on edge cause I have to go a week and a half without checking my ^%#@# mail. Christ I can't wait to go to work tonight

[dcforlife]

Ugh, that's the worst! I had that too (and sure enough, what I was waiting out came while I was gone).

[Quail!]

Ugh, that's the worst! I had that too (and sure enough, what I was waiting out came while I was gone).

Sadly, I'm actually considering driving down to school at some point this week to pick up the mail...


At least I got approved for the PLUS loan! lol

[Denny Crane]

Tiggity-tag.

I got a GRAD PLUS loan offer as part of my finaid awards from two schools.  The bulk of my education will be financed through private loans.  Good thing I've built up good credit over the last year or so.  C'mon reasonably low interest rates...

[dcforlife]

Denny, I'd be interest to hear how your interest rates pan out. I have great credit but got the sense from the discussions here that the rates on private loans probably wouldn't be fixed and probably wouldn't be significantly lower than 8.5%. And also that consolidation could be a problem at the end.