Should I accept a subsidized student loan and put it in savings?
November 8, 2010 by admin
Filed under Student loans
I was awarded about $2000 in subsidized loans this year by FAFSA. I decided I didn’t need them, but then I thought of this:
Would it be better to just take the money and put it in a CD or something, and then just pay if off right away when I graduate? Will there be any sort of interest or anything on the money if I pay it off right away? If I keep the money in my money market account, I could make about 200 bucks just in a couple years while I’m still in school.
With subsidized loans the government pays the interest while you’re in school, so you wouldn’t have to pay any if you paid it back right away when you graduate.
If you don’t need the loans, don’t take the loans. Although they are subsidized, they do accrue interest when you graduate and there is a fee for taking the loan. The fee for taking the loans would be more than the interest you could earn.