If i take out 50k for school and only need 30k, can i just instantly repay the 20k?

Question

this is hypothetical but for school loans, they give out certain amounts... what if i don't end up needing the full amount? can i just give it back or do i have to keep it and then repay it whenever it is i'm repaying

Answer 1

The school will let you adjust the amount you want.  If they offer you 3000 you can reduce it to whatever you like.  This would be the cheaper option because all student loans have whats called a, destination fee or processing fee or something like that... they take about 2% off the top for themselves of the total amount of the loan... so if you borrowed more than you need you would be giving them more as well.

PS Private student loans are evil!!!

Answer 2

usually you can just send it back as an early payment it shouldn't be a problem, worse case if they wont take it as a payment you can always put it in a savings account and let it gain interest and when it is time to pay it back you can give them the 20k plus the interest. Good Luck!

Answer 3

yes, give back what you don't use.