Advice needed regarding (college) loans and business funding - WickedFire - Affiliate Marketing Forum

CLKeenan · 07-31-2006, 11:50 AM

Here's my situation;

I am going to be a sophomore in college this fall. Currently, I am paying for my private college tuition from my website earnings. I pay it on a montly payment plan so I always have enough money to cover an emergency. I am not using any loans right now.

What I'm thinking though is why not take out a federal stafford or perkins loan (no payments while in school) and then just keep the money I make and put it in a high interest CD or fund (thats another topic for another time) while in school and then just pay off my college loans as soon as I'm done so I don't get hit with any college loan interest fees? Does that sense?

This would also allow me to also reinvest in my business to help it grow because currently I do not have much flexibility within my budget because tuition, room and board, and self employment taxes take a huge chunk out of my earnings.

Any feedback would be greatly appreciated!
-Chris

Stanley · 07-31-2006, 12:39 PM

if it's a subsidized loan you'll be able to take out a few thousand without having to pay interest on it. keep in mind your credit score will drop for as long as you hold that loan. otherwise it's a pretty good idea, I've actually done it before and paying back the loans right now.

John · 07-31-2006, 02:52 PM

I'd go for it. Most of us "fulltimers" took a leap of faith and went all in at one point in time. Whats the worst that can happen, your business fails? At least you'll know you gave it a shot.

DanNicol · 07-31-2006, 04:14 PM

student loans are some of the cheapest loans out there. I say go for it and roll your earnings into more building.

weneedsound · 07-31-2006, 08:39 PM

I'm doing this right now. Actually; me and my business partner are doing this currently. We both have 20k student loans in addition to our federal loans for school. We are rolling our loans over into our projects. Don't forget to look at grants. I got another 3k of extra cash from a few grants I stumbled apon after talking to my advisors.

Custom CMS is almost done and now getting excited as we get closer to launching our sites and it wouldn't have been possible in the time frame that we had started this project if it wasn't for the school loans. =]

I say go for it!

07-31-2006, 11:50 AM	#1 (permalink)
CLKeenan Join Date: Jun 2006 Location: Boston, MA Posts: 2,211 iTrader: 10 / 100%	Advice needed regarding (college) loans and business funding Here's my situation; I am going to be a sophomore in college this fall. Currently, I am paying for my private college tuition from my website earnings. I pay it on a montly payment plan so I always have enough money to cover an emergency. I am not using any loans right now. What I'm thinking though is why not take out a federal stafford or perkins loan (no payments while in school) and then just keep the money I make and put it in a high interest CD or fund (thats another topic for another time) while in school and then just pay off my college loans as soon as I'm done so I don't get hit with any college loan interest fees? Does that sense? This would also allow me to also reinvest in my business to help it grow because currently I do not have much flexibility within my budget because tuition, room and board, and self employment taxes take a huge chunk out of my earnings. Any feedback would be greatly appreciated! -Chris Share Share this post on Digg Del.icio.us Technorati Twitter

07-31-2006, 12:39 PM	#2 (permalink)
Stanley Join Date: Jun 2006 Location: San Diego Posts: 3,418 iTrader: 3 / 100%	if it's a subsidized loan you'll be able to take out a few thousand without having to pay interest on it. keep in mind your credit score will drop for as long as you hold that loan. otherwise it's a pretty good idea, I've actually done it before and paying back the loans right now. Share Share this post on Digg Del.icio.us Technorati Twitter

07-31-2006, 02:52 PM	#3 (permalink)
John Join Date: Jun 2006 Location: Sewageville Posts: 4,929 iTrader: 6 / 100%	I'd go for it. Most of us "fulltimers" took a leap of faith and went all in at one point in time. Whats the worst that can happen, your business fails? At least you'll know you gave it a shot. Share Share this post on Digg Del.icio.us Technorati Twitter

07-31-2006, 04:14 PM	#4 (permalink)
DanNicol Serenity Now Join Date: Jun 2006 Posts: 874 iTrader: 0 / 0%	student loans are some of the cheapest loans out there. I say go for it and roll your earnings into more building. Share Share this post on Digg Del.icio.us Technorati Twitter

07-31-2006, 08:39 PM	#5 (permalink)
weneedsound Distracted Join Date: Jun 2006 Location: New Hampshire, USA Posts: 114 iTrader: 0 / 0%	I'm doing this right now. Actually; me and my business partner are doing this currently. We both have 20k student loans in addition to our federal loans for school. We are rolling our loans over into our projects. Don't forget to look at grants. I got another 3k of extra cash from a few grants I stumbled apon after talking to my advisors. Custom CMS is almost done and now getting excited as we get closer to launching our sites and it wouldn't have been possible in the time frame that we had started this project if it wasn't for the school loans. =] I say go for it! Share Share this post on Digg Del.icio.us Technorati Twitter __________________ I liked you better living.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode