I got a refund check from university and want to use it on a loan I took out stupidly a few years back. I want to basically use it to pay the bill. Is that a bad idea?
Refund check from university
byu/StationIllustrious94 inStudentLoans
Posted by StationIllustrious94
3 Comments
I want to say thats smart but why did you get a refund check. Id want to make sure it’s not an accidental refund ya know
It very much is possible depending on how much you took out and what your university fees are
Supposed your expenses calculator for uni explains about 100,000$ including housing food tuition and you took out the same amount
Uni will ask you or usually split it in to 2 sems and than whatever is leftover from your tution and clg charges will be sent back to you as a refund
You could absolutely use that money to pay off the loan however review bill make sure the refund check makes sense
See if you have the funds to survive without using the check if your answer is yes than i would absolutely pay it off the sooner the less interest you pay on it
Is the interest rate on the loan lower or higher than you could make by putting it in a HYSA? Most HYSAs are in the 4.2% range right now, which would outpace Undergraduate Direct Loans made during the 2011-2012, 2012-2013, 2013-2014, 2016-2017, 2020-2021, or 2021-2022 academic years. If you’re in a case where the money would build more interest in the HYSA than it accrues in interest owed to ED, it may be better to put it off to the side for a bit.