Posted on December 20, 2007 at 11:51 am For many students, especially adults, the amount you are eligible for in student loans amounts to much more than the cost of tuition, fees, and books.  True, some students really do need the extra money for living expenses, but others use it to buy stereos and other gadgets.  It seems it would be far wiser to return the money you don't need right away, rather than putting yourself in a situation where you'll have to pay for it for many years down the road.

Posted on June 12, 2008 at 2:40 pm I fell victim to this very thing. Luckily, in my case, it was just a relatively small amount. My second year I received an additional $900 loan that was separate from my other loans. I should have just refused it, but when you are actually in school you just think that you don't have to pay those loans back for a long time and you like having the money at that moment. Of course, eventually you graduate and then you need to pay it back. For some I could see this amounting to several thousand dollars. I notice various ads for student loans, for like $20,000 or $50,000. I just know I wouldn't want to be the one who is paying back an extra $5,000 or $10,000 because I wanted a nicer car in college or a trip to Hawaii in the summer off. Really, you should only borrow what you absolutely have too. Most of what I borrowed was needed, but I suppose I could have worked more than I did, but I wanted to enjoy the last few years of my pre-career life.

Posted on June 13, 2008 at 10:38 am Oh how I wish I had this bit of wisdom when I was younger. It is taking me forever to pay off my student loans and some of that money could have easily gone unused.

Posted on September 24, 2008 at 11:51 am Sure- wouldn't that be smart. If only we knew then what we know now.  A lot of students see this as "extra" money.  They can pay it back when they are out of school.  I know I used mine for books and just basically living.

Posted on March 23, 2009 at 2:22 am So easy to accept money one doesn't need and then unwisely spend it and then regret later. Thanks for the advice.  

Posted on March 23, 2009 at 4:16 pm Unfortunately most 20 year olds don't think this is such a great idea until they get out of college and have to start paying them back! I knew a few people that always went hog wild when their loan $ came in. They always had left over money and went out and wasted it on CRAP.

Posted on March 23, 2009 at 4:31 pm Luckily for me I spent a few years in the "real world" before returning to college full-time. Taking care of myself for a while gave me the perspective I needed to make good use of my student loans. Of course I still needed some loans to get started, but once I am out of the workplace long enough I will qualify for federal grants, and when I have some time spent on my GPA I can qualify for scholarships and smaller private grants. But, there is the problem of actually needing a portion of the loans to pay my living expenses, I plan to pay off the initial loans (unsubsidized) with subsidized loans and/or grants/scholarships later on as I am able.

Posted on April 6, 2009 at 10:22 pm That would be the smart thing to do but then we have to take into consideration that we are talking about young adults here.  The mentality is that they can spend the extra money and worry about paying it off later.  I don't think most take the time to consider the benefits of giving back what they don't use.