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Hello All!
Well as most of you regulars know, I am still in much debate over where I will be attending nursing school.
I do have good news though, I"VE FIGURED OUT HOW TO MAXIMIZE MY PRIVATE LOANS! You must understand I don't like debt, so this is good news for me. Yippe! :lol:
Here's the deal. One school, I'm interested in (the grad entry program) cost $37-38K for the entire program, soup to nuts. I have some savings, but I will need at least $15-18K for living expenses. From past experiences I have figured I can live frugally and decently on $1100-1200/month (less really, but I'm trying to be respnable and eat more than mac& cheese and Ramen). I am single with no kids, and just a cat who THINKS she's a kid! This would mean I had to borrow at least $56K if I wanted to cover everything up front.
This school has a payment plan. I can divide the $38K tuition into 12 monthly payments- $3167. My plan is to borrow $33K then add $8k of my pwn savings for a total of $41K. I will then deposit the amounts in an interest bearing savings account paying at least 4%. Right now HSBC is paying 5.05%. They have been paying 4% for a while and have offered me at LEAST 4% for another 2 years.
I have talked to a few private education loan people and found out with proof or enrollment I can get my check 2.5 months befor schools starts. Every month AFTER the bank has paid me interest on the money I will subtract my monthly tuition payment and living expenses. Then the clock will start again and they will apy me interest on my new balance. I've calculated that the interest on the new balance will be enough to pay all my living expenses for 2 months more than 3/4 for 3 months and more than 1/2 for another 3 months.
The amounts will get smaller, but if I stick to my household budget and only withdraw the same amount, I can borrow less and have enough to last the 15 months of the program. I can borrow $23k less and still make it. It will even work if I have to borrow $41K and have no savings. I am hoping for a $15K scholarship which would cut my tuition payment in half.
WHOo HOO! :monkeydance:
I have carefully followed the deposit/ interest paid dates on my bank statments and talked to them I think I an do it. What do you guys think?
I've only calculated with private loans where the student get the check. I have ignored the interest rate on the student loan, but I am shopping around for the very best one. If anyone wants to borrow the SUNNY PLAN, they can!