<p>Hi,</p>
<p>I’m a college senior, and I’m paying for my final year of college (circa $8k) as a thank you to my parents. I’m also an Americorps member and will be receiving an “Ed Award” of around $2,300 when I finish my term of service sometime in the spring semester. Ed Awards have to be used for higher ed COA expenses (either direct costs or paying off students loans) and used within 7 years.</p>
<p>If I don’t get into grad school this year or don’t get into a fully funded program, I’ll have additional COA expenses to use my Ed Award on. On the rarer off-chance that I do get into a fully funded program, however, I may not have an opportunity to use my Ed Award.</p>
<p>It seems like I have three options for paying for Spring semester:</p>
<p>1) Pay the lump sum (~$4-4.5k) upfront and just not use the Ed Award now.</p>
<p>2) Get a (likely unsubsidized) student loan and pay that off later using the Ed Award (I have no prior loans or debt, student or otherwise). However, I understand that this requires filling out the FAFSA, which would probably be a no-go for my dad (he HATED filling out the FAFSA and was overjoyed when my choice of a near full-ride meant that he wouldn’t have to do so every year).</p>
<p>3) Apply for the deferred payment plan, which costs $20 extra and divides payments into three equal sums throughout the semester. Use the Ed Award to pay off part if payments 2 and 3.</p>
<p>Any thoughts would be much appreciated! Is there any advantage of taking out a loan in terms of building credit, etc?</p>
<p>Thanks.</p>