Anyone know anything about student loans?

[ryan_d_sucks 0]

Hey-

Does anybody know anything about student loans? I'm currently a college student, and I've got $1300 saved up to buy a rig. I've got a part-time job outside of school, but I'm only bringing in around $100 a week. The rig I'm looking to buy is 2 grand, plus I need to find a cypres with some years left...

So, I'm thinking about taking out a loan. I don't need a big loan, maybe $1000 or less. I just need the cash quick, because its not getting any warmer, the days aren't getting any longer, and that rig isn't being hidden from other buyers.. Does anyone know ANYTHING about student loans? I know they supposedly get great interest rates, but if you get a federal student loan do you 1) have to qualify and 2) use it on school? Can someone get a student loan from a private company and use it on 'personal expenses?' Does a loan for only $1000 always require a cosginer?

Before we get into the going into debt debate, I have a job and steady income. I do not plan to defer payments on the loan until graduation, I'm going to start paying principal and interest immediatley. The only reason I need the loan is because its going to take me close to 6 weeks or more to save up the cash that I need for this rig and cypress. $1000 is the most I would need.

I appreciate any information, reccomendations, or insight.

Ryan

[Broke 0]

I would tend to say that using a student loan for a rig would be fiscally irresponsible.

Divot your source for all things Hillbilly.
Anvil Brother 84
SCR 14192

[jimmytavino 16]

i don' think it's that easy.....
we have paid about 80 % of the tuition and room and board costs for our kids as they attend/ attended college....
But we did avail ourselves of financial aid,,,, student loans for our oldest... ( she's now a successful Soc. Studies teacher in her 3rd year )

There are pages and pages of forms to fill out ( FAFSA ) and we NEVER saw any of the money lent to her, by those loans... ( It goes Directly to the college )

All we got was verification of the amounts owed, the interest rates and the due dates....

Even grants which the kids earned were sent directly to the bursars office...there is no free lunch...

It's good that you work, and it's good that you're also a student...you're developing good habits for the future..

Pre owned gear will always be there, if your choices are flexible.... Do what you can to start saving $$$$. or try a conventional loan elsewhere...Part of the problem in this country is when people borrow for something, then realize they got overextended and fail to re pay... College loan defaults are an issue and only cause interest rates for those who DO pay to keep climbing... granted 1,000 bucks is no big deal... but I wouldn't suggest using a 'student loan' to get the funds... sorry...
hey !!!200 pack jobs is a thousand bucks..( more, with tips ) .try that


good luck...

j

[mnealtx 0]

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I would tend to say that using a student loan for a rig would be fiscally irresponsible.

+1

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[PhreeZone 20]

Almost every student loan program out there requires that they pay the school directly. The school can issue you a refund check for the excess that you can use for living expences or similar.

Honestly... I'd wait on the rig. There are usually a lot of rigs for sale over the winter from people ordering new or from people decideing they are quiting. Prices tend to slide a bit then and it gets to be a slight bit more of a buyers market. Unless you are an extremely odd body type (5'3" 180lbs) odds are a nother rig wil come along at some point soon and it might be as good or even a better deal.

Yesterday is history
And tomorrow is a mystery

Parachutemanuals.com

[DiamondGirl 0]

Federal student loans have a decent interest rate, but you need to qualify for them and they get sent to your school. The type of loan a student would get for "personal expenses" has a much higher rate. You'll end up paying twice the loan back. Especially if you want the loan sent straight to you instead of going through the school, which some companies do have programs for. The personal student loan I just took out ended up having an interest rate much higher than my credit card. Hardly worth it. Lesson learned.
Besides, it took 4-5 weeks for the check to get to me.

~* Quae Sursum Volo Videre *~

[Beerlight 0]

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I would tend to say that using a student loan for a rig would be fiscally irresponsible.

+1

+2

[karenmeal 0]

Six weeks sounds like a pretty short wait to be able to purchase the rig without going into debt over it.

Good deals on rigs come up all the time... someone's wife gets pregnant and they decide to quit.. someone runs out of money and has to sell the rig for fast cash.. someone gets hurt and sells the rig..

Be patient grasshopper.

"Life is a temporary victory over the causes which induce death." - Sylvester Graham

[skydvr808 0]

Yes, Payments on a student loan will be paid to the school directly and you can get a refund for housing etc.

One benefit to taking out the student loan as a form of financing is that student loan interest is tax deductible. If you were to finance the purchase with credit card debt the interest would not be tax deductible. In addition, interest rates have been falling recently so you might get a good rate. Though I would wait until after the next Federal Reserve Open Market Committee meeting on the 18th when most analysts expect a rate cut.

[DrewEckhardt 0]

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One benefit to taking out the student loan as a form of financing is that student loan interest is tax deductible..

Until you can mix that in with $5150 in other deductions that doesn't do you any good.

[ryan_d_sucks 0]

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I would tend to say that using a student loan for a rig would be fiscally irresponsible.

Why would you say that? I am in no debt right now, my school is paid in full. Taking out this loan would put me only $1000 in debt, which I intend to begin paying off immediately. I checked some out today and the rates came to $50/month for 22 months. That comes out to a total payback of $1100, only 100 more than the actual loan. If I can't afford to pay $50/month on a loan I probably shouldn't even be considering skydiving- but I can afford that.

Assuming I make about $100 dollars a week at my part time job, i should easily be able to make a $50 payment every month.

So what makes it so fiscally irresponsible? I'm not trying to butt heads with you, I'm honestly asking.

[wmw999 2,446]

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I am in no debt right now, my school is paid in full. Taking out this loan would put me only $1000 in debt, which I intend to begin paying off immediately

The vast majority of students that I know (my sample size is not large, though) owe more money than they can pay back easily. They trust that their "plans" (vague hopes) will work out, and that their jobs will continue, and that they won't develop unexpected expenses for their car or something else.

Make a spreadsheet. Look at all of your monthly expenses.

But, basically, if the reason you're taking on debt to buy parachute gear (see how silly that sounds?) is so that you can have it sooner, it might be worth reconsidering.

But if it's so that you can build up a credit rating, etc., then maybe.

Many older people just have more experience in things not turning out how we anticipated. And it's not always due to our innate inferiorness.

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[Broke 0]

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Many older people just have more experience in things not turning out how we anticipated.

Wendy W.

Aint that the truth!

Divot your source for all things Hillbilly.
Anvil Brother 84
SCR 14192

[Broke 0]

Just take a step back and look at the big picture. While it may look like a good idea it may not truly be a good idea.

Divot your source for all things Hillbilly.
Anvil Brother 84
SCR 14192

[Morrison79 0]

Like you said a $1000 loan is not very big. Doing it through a student loan might be a big pain in the ass though. Why not just get a credit card? As long as your confident you can pay it back relatively fast then you won't pay that much in interest.

[virgigirlie 0]

We can all say what we want about fiscal responsibility. If you want a loan, you're going to get one.

You'll have to qualify, no matter if it's FAFSA (www.fafsa.ed.gov) stuff or a private loan. As others have said, student loans are mostly paid directly to the school and then the school cuts you a refund check. Usually, the loan has to be for a certain semester, so you may be stuck waiting to get that money. Unless you can get a bank/private loan. That's a whole different game. Student loans typically come with the "for school only" (books, housing) stipulation, but who's gonna know? I was never asked what that money was spent on.

The cosigner part will depend on your credit history.

As long as you actually pay the loan back responsibly you should be fine.

Good luck!

"If you can't be a good example, then you'll just have to be a horrible warning." ~Catherine Aird

[skydvr808 0]

Yea that's true. If your AGI is less than $5,100 then a student loan interest deduction wouldn't do you any good. But then if that's the case, you've got bigger problems.

Also one other clarification, the deduction applies only on interest PAID not accrued, so you won't be able to take a deduction while you're in school unless you're paying the interest as well. Most people I know let the interest accrue until you begin repayment after graduation and have a full time job.

[Casurf1978 0]

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Just take a step back and look at the big picture. While it may look like a good idea it may not truly be a good idea.

This is some great advice. I dont want to sound like an a-hole, but if you can barely afford the gear how will you pay for your jumps. A single day of jumping can set back 80+ dollars. That's for only a few jumps and one day. Now lets say you wanna jump a few days out of the month, that can easily add up to $150+. Then start adding on coach jumps, events, new toys and it really starts costing some cash. Take a step back and look at the big picture.

[ryan_d_sucks 0]

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Just take a step back and look at the big picture. While it may look like a good idea it may not truly be a good idea.

This is some great advice. I dont want to sound like an a-hole, but if you can barely afford the gear how will you pay for your jumps. A single day of jumping can set back 80+ dollars. That's for only a few jumps and one day. Now lets say you wanna jump a few days out of the month, that can easily add up to $150+. Then start adding on coach jumps, events, new toys and it really starts costing some cash. Take a step back and look at the big picture.

That's the thing.. I CAN afford spending $50-$60 bucks a week on jumps. What I CANT afford is to drop 1000 on gear all at once at this point in time.. That's why I want to finance it over time at a managable monthly rate. Its not that I won't be able to afford the rig, its that I won't be able to afford it all at once until the season is nearly over. I can, however make the easy monthly payment of $50 all year to pay back a small loan (this will be especially over the non-jumping winter months). Does that make sense?

Caveat: this loan is only for the rig. I have enough money for jumps, and other stuff. I also don't plan on buying plane tickets to boogies and what-not. If I decide I want to go somewhere, then that's why I've got a job, not a loan. The loan is strictly for the gear.

Its not as if I am going into debt with no savings/job/alternatives for cash. I can easily afford to make the monthly payments of $50 on the loan, however, I can't afford at this point in time to just drop the $600-800 that I still need (because I don't have it yet, this is where the loan comes in). Its kind of like a cash advance. I can't afford it right now, but I will be able to in a few months... So why not just finance it and eat the extra 100 dollars that I'll pay back over the next 2 years, as well as build some credit?

I know its easy to slap a label of irresponsibility on a college kid looking for a loan as a means to part-take in recreation, but I don't think you fully understand my situation and plans.

[eeneR 3]

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I know its easy to slap a label of irresponsibility on a college kid looking for a loan as a means to part-take in recreation, but I don't think you fully understand my situation and plans.

This my friend is where you are probably wrong many a skydiver has been in your same shoes over and over. Some may very well be speaking of experience from themselves for from what they have seen in others.

Debt is debt. Obtaining debt to play is not a good plan. You will however rationalize it to yourself another way then that because it is what you want.

She is not a "Dumb Blonde" - She is a "Light-Haired Detour Off The Information Superhighway."
eeneR
TF#72, FB#4130, Incauto

[VideoFly 0]

National security depends on an educated populous. It’s a shame that the government takes advantage of students and charges such high interest rates for the education that helps to ensure national security.

They give you more than you need. It is great at the time, but not 20 years later when you are still paying interest.

Your 30 grand eventually becomes 100 grand.

I bought a house at a better rate than an education. My house has become worth more than my raises have produced.

If you are trying to get ahead, the student loan may be your best bet, but as for a rig, try to get the money elsewhere. It is a shame to pay 12 grand for a rig 15 years after you have outgrown and sold it.

[Andy9o8 2]

Putting false or misleading information on any loan application (such as the purpose of the loan), regardless of whether or not the loan is approved, is a criminal offense.

If the loan is approved and you sign a promissory note falsely stipulating that you'll use the money only for a certain purpose, that's a second criminal offense.

If the the money is disbursed to you and you accept the check under these false pretenses (i.e., you don't send the check back), that's a third criminal offense.

If, having accepted the check under those false pretenses, you deposit that check into your bank account, that's a fourth criminal offense.

If you actually spend the money for purposes not authorized by the promissory note, that's a fifth criminal offense.

If you get someone to co-sign the loan application for you, that's your sixth offense. If you get them to co-sign the promissory note, that's your seventh offense. And that's even if the co-signer was not aware of your false pretenses.

If the co-signer was aware of your false pretenses, that's criminal conspiracy by each of you - your eighth separate offense, and now the co-signer has committed crimes, too.

Do it in a federal loan program, or with a federally-insured bank or credit union, and they're all federal offenses.

Submit documents via the U.S. mail in this process: add federal mail fraud.

Submit an application or information via the Internet or e-mail: add federal wire fraud.

A criminal record: the gift that lasts a lifetime.

[jimmytavino 16]

aw geeze Andy........ NOW you're takin' all the fun outta this... before it was just silliness.... and wishful thinking and frankly which of US hasn't thought of some "creative financing" ideas... so we can buy gear????....


but now you make it seem so dirty
hahahaha.. federal charges and ALL..


for the O P .. hang in there,, you'll get your gear,,,somehow... AND ( Hopefully) your education, as well...


j t

a 3914
d 12122

[NoShitThereIWas 0]

Speaking from the experience of someone who racked up close to 30K in student loans to help pay for school, housing, skydiving and the need to EF and S ...

My advice is that student loans suck when you have to start paying them back. Don't borrow if you don't have to and deferment is the way to go unless you can afford to pay them off sooner. I will defer as long as I can before I have to pay them back. Do the subsidized thing for sure. Unsubsidized is for the birds.

Anyhow, the longer I can be a career student, the longer I can postpone paying it all back. Cuz it is going to hurt bad.

Roy Bacon: "Elvises, light your fires."

Sting: "Be yourself no matter what they say."