Current Events > Is it wise to accept all financial aid for college?

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im an undergrad. I was offered a pell grant which I am going to take obviously. I was also awarded 9500 in loans..Do you recommend taking it? I know part of it has to be used for transportation, but I don't have a car..so was thinking to buy a cheap one(2k or something). I am asking due to not wanting to be in serious debt, but also am not sure if taking a loan will affect future pell grant funds I receive. Thanks all.
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Grants? Yes. Loans? No.
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if you don't have money or a job, student loans are the best loans to take

you can put them off forever or even just say "I can't pay, oh well"
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Loans should always be a last resort, and the later you can take them, the better. I wish I had known about capitalized interest when I was in college. What that means is that if you take unsubsidized loans, they will continue to accrue interest even though you're in a deferment period since you're in school. And then after a year or so, that interest eventually becomes principal, which further increases the interest you have to pay over the years. It's probably added an extra $2,000 for me, and I didn't even have that many loans. If you do take out loans, it would be wise for you to make payments even while you're in school.

Where I live, you've got two options for getting a university education:

1. Parents with lots of money
2. Loans
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There's also another thing to keep in mind with student loans. Much like other types of debt (credit cards, mortgages, auto, etc) the interest rate is tied to the prime rate controlled by the Federal Reserve. They raise this rate periodically when the economy is doing well to keep inflation in check and to increase the cost of borrowing. They've raised the rates twice this year already, in 0.25 increments, and are expected to do so two more times this year. Interest rates right now are still historically low, but whatever rate you have when your loan originates is what you will be locked into. So there may be some merit in taking the loans earlier, but I don't think it will save you any money in the long run. You should still avoid loans if at all possible.

thank you all for the information you've given. I guess I plan to take a partial amount of the loans only.
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only borrow as much as you need to pay for school. otherwise you are taking out student loans to buy beer, which is an incredibly dumb idea.
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Take all grants and scholarships, as you dont have to pay those back.

Only take as many loans as necessary though. Dont take more than that, Ive seen too many people screw up their debt situation because of it
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Dont do loans. Apply for grants and scholarships. Mow lawns for cash
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bkkorps posted...

only borrow as much as you need to pay for school. otherwise you are taking out student loans to buy beer, which is an incredibly dumb idea.

Pretty much this. Sometimes it's unavoidable, and you'll need loans. 9k total isn't too bad at all. I graduated with many people over 100k
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Pell grant is nice. But be warned, if your grades drop to a certain level, you will have to pay the money back.
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I ended up owing about 27k after all was said and done (5 years total). I too used financial aid for transportation as I went to CC for 2 years and had to commute. I'm currently paying $325 a month and I'm able to live just fine like this. I could have definitely pinched pennies and owed less (I was totally one of those idiots who used some of the money for beer), but honestly I probably wouldn't change a thing. I learned a lot, got a job I wanted, and had fun along the way.
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