A trick to pay less interest on student loans

When students get their financial aid package their aid is given to the students twice a year during the first few weeks of the semester. The aid often composes of grants and both unsubsidized and subsided student loans. But why would you take out the unsubsidized loans right away? You probably can pay for your classes with the subsidized loans and grants and then request the unsubsidized loans a month or two later once you actually need the money for living expenses. Keep in mind most dorms allow you to pay month to month or by semester, you can choose month to month and pay less interest. It normally takes about a month to get the loan so I would request it a month before you need it.

This is what I would do for this upcoming semester. First, check how much saving you have, determine what your month will be and how long your savings will cover you. Then request only the grants, work study and subsidized loans from the school. Use this until you are only have a month and half of expenses in your savings account, then request the unsubsidized loans. If you are able to work or do work-study you may be able to stretch the money out even farther. Given that you will be using up much of your saving during the first semester you probably will need to take the unsubsidized loan during spring, sooner. That is ok, but you will save a large portion for every day you push back taking the loan so try to push it back as far as you can, while not going so far that you do not have money for living.