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Student loans

D

Demon Hunter

macrumors 68020
Original poster
This thread is for those among us who are using borrowed funds to purchase their Mac. Graduates, please post your financial wisdom.

How hard is it to pay off? What upgrades should be considered, if any? What are the consequences of taking out a bigger loan?

I plan on using savings to supplement the cost of a MBP.
 
Demon Hunter said:
...Graduates, please post your financial wisdom.

How hard is it to pay off? What upgrades should be considered, if any? What are the consequences of taking out a bigger loan?...
Click to expand...

I financed school through loans and its not fun now having had to pay them off for the last year and still for many years to come.

My advice is if you need a computer, go for it. Don't go crazy, cause while it seems like free money now, you'll be paying for it later.

But in general, I think you need to look at the big picture. Is it worth alittle financial hardship later to have fun while in school? Or is it better to live the college life, skimping and scraping eating mac and cheese and ramen every day to be able to do what you want when you're done with school and have a regular income?

Personally, I do wish I spent alittle less while at school. While I had fun and dont regret most of the things I did, you do need remember it is your money you're spending and you will be paying off whatever you spend that money on for years down the road.

So bottom line is yes, get your mac. But no, dont get a fully upgraded mac pro if all you need is a macbook.

My $0.02.
 
tkidBOSTON said:
I financed school through loans and its not fun now having had to pay them off for the last year and still for many years to come.

My advice is if you need a computer, go for it. Don't go crazy, cause while it seems like free money now, you'll be paying for it later.

But in general, I think you need to look at the big picture. Is it worth alittle financial hardship later to have fun while in school? Or is it better to live the college life, skimping and scraping eating mac and cheese and ramen every day to be able to do what you want when you're done with school and have a regular income?

Personally, I do wish I spent alittle less while at school. While I had fun and dont regret most of the things I did, you do need remember it is your money you're spending and you will be paying off whatever you spend that money on for years down the road.

So bottom line is yes, get your mac. But no, dont get a fully upgraded mac pro if all you need is a macbook.

My $0.02.
Click to expand...

Thanks, that's good advice. 🙂
 
I am going through the same situation. Except I already purchased the computer. The past few days have been really hard for me. I am currently going to school for Finance. I have a year and a half left and then I am done. Three days ago I was offered a position with a National Mortgage Company. Not being a loan officer, or broker, but more of a management position that would be in charge of a region consisting of around 25 offices. Needless to say I am having a terrible time deciding if I stay in school pay more student loans and add to my never ending debt, or take the money and run.

Anyway yes I would say you should go for the mac, because a mac will make your college experience that much more enjoyable. Just don't go out and buy somthing that will drain your pocket. Or the banks. Because you will have to put that money back in the banks pocket later with interest.
 
CrackedButter said:
I put my student loan into premium bonds instead of buying a new mac...😉
Click to expand...

Thats very wise of you. I have quite a few 😉 premium bonds and regularly win £100 or more a month. Still waiting for the big one though 🙁

With regards to paying off your loan it obviously makes sense not to take more than you actually require, because you will only piss it up the wall and then be regretting it when trying to pay it off.

The repayment methods in England are just stupid. I think you pay off something like £5 a month which I dont think really covers the interest - which by the way will be more than you think it is. A word of warning for you all.

The students loans company are crap at what they do and will regularly get things majorly wrong. Like over charging, charging tax twice and some other crazy stuff.

I was lucky and won some money which allowed me to pay it off in one big lump. However they ended up paying me money (£200) because they also got that wrong too.

My advice, pay it off as early as you can. And keep pay particular attention to what you are paying. Easier said than done I know but if not you will be paying it back forever. Oh and good luck getting through to the Student Loans Company in Glasgow. Im sure they only have one phone and it must be a payphone in the street or something because noone ever picks up.
 
stuartluff said:
The repayment methods in England are just stupid. I think you pay off something like £5 a month which I dont think really covers the interest - which by the way will be more than you think it is. A word of warning for you all.
Click to expand...

Yeah, you're quite right there - I still pay off my Student Loan (Graduated '03) and it took me a while to get my wages up to a place where the student loan reperation was actually paying off the loan itself, and not just the interest (which is around £20 per month I think).

The thing is, that now with around £80 being taken off my wages automatically each month, I seriously don't really notice it - because it never ended up in my pocket in the first place, its no big deal really.

Don't fret about you Student Loan too much, worry about credit card bills, and loans to the bank instead - thats where a lot of people get hurt financially!
 
stuartluff said:
The repayment methods in England are just stupid. I think you pay off something like £5 a month which I dont think really covers the interest - which by the way will be more than you think it is. A word of warning for you all.

The students loans company are crap at what they do and will regularly get things majorly wrong. Like over charging, charging tax twice and some other crazy stuff.
Click to expand...

When I did mine they calculated how much I needed to pay to clear the loans over 5 years and set my payment at that. No idea if that is still the case but it worked fine for me - came out before I even knew it was there. When I finished paying off the loan I diverted that £90 a month into my pension fund as I had never got used to having it so never missed it.
 
Foggy said:
When I did mine they calculated how much I needed to pay to clear the loans over 5 years and set my payment at that.
Click to expand...

They did that a few times with me but by the time they got the letter out to me the amount had changed again. In the end I spent about 1 hour in a queue on the phone and demended to pay it all off at whatever the amount was at that instant. I did and it was still wrong. They over charged me £200 and so they ended up paying me back. Crazy!

Fortunately I dont have to worry about it now. Paid it off one year after graduating 😎
 
Beware the interest free loan gimmick. I bought my Powerbook under this program and religiously made my payments on time. Unfortunately, the last payment as scheduled exactly 10 days after the supposed payoff date and I got hit with additional fees. I was torqued and it took quite a few phone calls and letters to get sorted out.

Lesson: if you do sign up for an interest free payment program, make the last payment early.
 
Demon Hunter said:
This thread is for those among us who are using borrowed funds to purchase their Mac. Graduates, please post your financial wisdom.

How hard is it to pay off? What upgrades should be considered, if any? What are the consequences of taking out a bigger loan?

I plan on using savings to supplement the cost of a MBP.
Click to expand...

The consequences of a bigger loan? You pay more in interest and you also have a higher monthly payment. Be careful about taking on debt at your age.

Interest rates are still relatively high. 6 years ago the rates were so low that student loans were actually a good investment -- take out 10k in 2000 at 3%, and make the minimum payment while you invest your salary at 6-7%. Now the situation is reversed...in a few years, your loans at 5-6% will be relatively expensive and you'll want to pay them down as quickly as possible.

Still, the loans are much cheaper than credit card debt, and the payment history you establish will give you improved credit -- which saves you lots of money in the long run if you want to own a house some day.

Buying a Mac isn't a bad idea, since you really benefit from having a good computer in college, and macs retain their resale value very well. I suggest you buy something nice without going overboard.
 
stuartluff said:
The repayment methods in England are just stupid. I think you pay off something like £5 a month which I dont think really covers the interest - which by the way will be more than you think it is. A word of warning for you all.

The students loans company are crap at what they do and will regularly get things majorly wrong. Like over charging, charging tax twice and some other crazy stuff.
Click to expand...

That's really funny. In the US we have stupid loans too, except people take them out on their homes -- not school. There will be a lot of new homeless people in the next couple of years.

The student loan companies (ACS, AES) I've dealt with in the states are all pretty good, however. All payments are online, there's lot of information disclosed, and if you call to ask questions they're easy to get a hold of.
 
Swarmlord said:
Beware the interest free loan gimmick. I bought my Powerbook under this program and religiously made my payments on time. Unfortunately, the last payment as scheduled exactly 10 days after the supposed payoff date and I got hit with additional fees. I was torqued and it took quite a few phone calls and letters to get sorted out.

Lesson: if you do sign up for an interest free payment program, make the last payment early.
Click to expand...

The exact same thing happened to me during college while paying off an Apple Student Loan through MBNA. When they realized they weren't making any money off of me (because my payments were on time), they decided that a slight change in the terms of agreement was in order (without notifying me, of course). Unfortunately, in my case I was unable to get the charges reversed.

Needless to say, I will never deal with MBNA again. And if you're thinking about taking an Apple Student Loan through said institution, think again.
 
Boxer said:
I am going through the same situation. Except I already purchased the computer. The past few days have been really hard for me. I am currently going to school for Finance. I have a year and a half left and then I am done. Three days ago I was offered a position with a National Mortgage Company. Not being a loan officer, or broker, but more of a management position that would be in charge of a region consisting of around 25 offices. Needless to say I am having a terrible time deciding if I stay in school pay more student loans and add to my never ending debt, or take the money and run.

Anyway yes I would say you should go for the mac, because a mac will make your college experience that much more enjoyable. Just don't go out and buy somthing that will drain your pocket. Or the banks. Because you will have to put that money back in the banks pocket later with interest.
Click to expand...

You should take the job and graduate later! 🙂
 
stuartluff said:
Thats very wise of you. I have quite a few 😉 premium bonds and regularly win £100 or more a month. Still waiting for the big one though 🙁

With regards to paying off your loan it obviously makes sense not to take more than you actually require, because you will only piss it up the wall and then be regretting it when trying to pay it off.

The repayment methods in England are just stupid. I think you pay off something like £5 a month which I dont think really covers the interest - which by the way will be more than you think it is. A word of warning for you all.

The students loans company are crap at what they do and will regularly get things majorly wrong. Like over charging, charging tax twice and some other crazy stuff.

I was lucky and won some money which allowed me to pay it off in one big lump. However they ended up paying me money (£200) because they also got that wrong too.

My advice, pay it off as early as you can. And keep pay particular attention to what you are paying. Easier said than done I know but if not you will be paying it back forever. Oh and good luck getting through to the Student Loans Company in Glasgow. Im sure they only have one phone and it must be a payphone in the street or something because noone ever picks up.
Click to expand...

I'm getting £4,500 a year student loan in 3 deposits, its all going into premium bonds. I already have 1500 bonds for the November draw!

I spent the grant however since it doesn't need paying back. I've also got shares in Tesco and expect a dividend in November as well as a collect a wage. I already walked in to uni with a small debt, I don't want to walk back out with a bigger one and want it paid off ASAP so yeah you're right about not pissing it up against the wall.
 
this is my situation right now. in ontario we have OSAP, which is payment free while you're in school. and i have a student line of credit, which i only pay the interest on what i spend. I plan to use my osap through school, and when i'm done i'll pay it off with the line of credit. the numbers work out (moms a banker) so i'm good that way.


but i'm in television and make lots of short films. equipment is super expensive in this field and i'm starting to need mor advanced stuff. i'm planning on selling my vx2000 and getting a dvx100a, and selling my powerbook and buying a mac pro. it seems like a ton of money but i know its worth it.

and when school's done and i still have loans, i plan to finance more equipment or a car and have really cheap payments. but i still feel like i'm digging a huge hole. whatever.... money's no good in your pocket. its just paper, so have fun with it.
 
Student Loans in America:

rate has topped out at about 7.1%, an increase of about 3-4% in ONE YEAR!

taking out a loan today is suicide.

student loans are supposed to be "cheaper" than private loans, and they typically are, and are ALOT easier to repay than private.

However, with the turn in the economy, student loans thru FAFSA are really expensive these days, but then again inflation she is a beast.
 
My student loan has a 6.1% interest rate.

What gets me the most, and angers me beyond expression, is that due to being:
a) Under 24 yrs old
b) Not married
c) Parents are living

I am not eligible for aid. Being 21, I can't just write a check for college, so have no choice but to go for ridiculous loans.

The way congress and FAFSA see it, if you're parents are alive, they must have payed for your college.

Wish that was the case, but some people like myself don't come from wealthy families that can just pay for something like that.

Being the first person in my immediate family to go to university, it is both a great oppertunity as well as a huge financial obstacle.

One congress/FAFSA has no interest in assisting with.

Futher, because my mother cannot pay for my school and does not claim me as a dependent on her taxes, but IS FORCED to assume her income contributes to my college costs on the FAFSA form, it is nothing but a giant contradiction of logic.

Obviously if my mother's and my taxes both show that I am independent and she does not contribute to college, how congress (who defines FAFSA's rules) can calculate her income into my financial need is beyond me.
 
if you are not being labeled as a dependent, there are plenty of options to NOT have a parental tax history on your FAFSA.

yes, being 24, a ward of the state, married, or in the military are usually the only options.

but if you have "proof" that no one is claiming you, then there is no reason to put them on your FAFSA.

go talk to a financial aid counselor more, im a tad rusty.
 
Sdashiki said:
if you are not being labeled as a dependent, there are plenty of options to NOT have a parental tax history on your FAFSA.

yes, being 24, a ward of the state, married, or in the military are usually the only options.

but if you have "proof" that no one is claiming you, then there is no reason to put them on your FAFSA.

go talk to a financial aid counselor more, im a tad rusty.
Click to expand...

There are 0 options. The form itself is set up so that if you do not check yes for: married/divorced, widowed, veteran, parents deceased/in foster care and your birth date makes you less than 24, you *must* include at least one parent's income in your calculated contribution.

I've called every office FAFSA has as well as gone over it countless times with my school's financial aid office, and the way the laws are set up, there are no ways around it.

Individually, the school can provide attentional aid in certain circumstance:

Basically, if you parents are not dead, they have to be in prison/jail/hospital for that to even be a consideration.

It's really messed up, and it doesn't help that they have mroe than one definitition for what "independent" means. To the IRS, I am independent. For financial aid, nope.

😡 Makes me mad just thinking about it.

Through talking about this with others, I've since met several people who refused to go to college until they were 24 for this very reason.
 
It took me like 7 years to pay off my student loans. It got old.

I think it depends what you are studying.

For instance I was studying film and tv, so it was hard to break into the business. I wish I'd spent less on student loans.

However, on the other hand, a friend of mine used his Mac to design websites, do Flash animation and other stuff at his first job. You may be able to use your Mac at your job, which would make you more attractive to hire if you learn how to do useful stuff like that.

Sorry that's kinda contradictory... but that's what I observed anyway.
 
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