Final Semester of Undergrad....how to pay?

[sandstorm223]

I am going to begin my final semester of undergraduate studies in January. I'm planning on using FAFSA, as usual, to mitigate most of the educational costs but I am going to have a hard time paying for much else. The costs of interviews, apps, and life in general has really started to hit me and I am going to need something more than the current job I have. I've so far avoided loans like the plague, and have only taken out one very small Stafford loan. Should I take out a second one just to get me by until med school starts?
Alternatively, I could sign up for a second, and even third, credit card. Adding two new cards would give me the money I need to get through one more semester without taking out another dreaded loan. It would also build my credit to have three cards all being responsibly paid at once. Plus, as long as I pay each minimum balance by the monthly due date I won't ever even pay interest.
What would you do if you were me (or, for you medical students, when you were me)? Take out a loan? Sign up for a couple more cards? Am I irrational to even consider using credit cards as an option?

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[RangerBob]

I'm not sure why you're more scared of a federal student loan than credit cards.

Using a credit card to pay of education debt should be a last resort unless it's a card with 0% APR and you know with 100% certainty you'll pay it off by the end of the promotion. But usually if you're in that scenario then it means you already have the money lined up and could just pay cash if you wanted.

You're statement you won't every pay interest if you pay the minimum balance every month isn't quite accurate--unless you're in a 0% promotional APR period, your credit card is accumulating interest unless you pay it in full. And it's accumulating interest usually around 10-18%. And it'll keep doing that until you pay it off. Your minimum payment may not even cover the accumulating interest--it's just the minimum payment you have to make to keep them from increasing your interest rate further. You'll also have to keep making those payments during medical school--there's no in-school deferment.

Take out the federal loan. It's lower interest, safer, and you can defer it during medical school. Unless you have a job in medical school the only way you can pay off that credit card is via your med school loans, which will be at a higher interest rate than the undergrad loan you could've taken out.

If I were you my options would be:
1) Use savings or borrow from family
2) Work more hours if I can maintain my grades
3) Get a federal loan
4) Get a private loan
5) Credit card
6) Loan shark or sell my kidney.

 

[sandstorm223]

I'm not sure why you're more scared of a federal student loan than credit cards.

Using a credit card to pay of education debt should be a last resort unless it's a card with 0% APR and you know with 100% certainty you'll pay it off by the end of the promotion. But usually if you're in that scenario then it means you already have the money lined up and could just pay cash if you wanted.

You're statement you won't every pay interest if you pay the minimum balance every month isn't quite accurate--unless you're in a 0% promotional APR period, your credit card is accumulating interest unless you pay it in full. And it's accumulating interest usually around 10-18%. And it'll keep doing that until you pay it off. Your minimum payment may not even cover the accumulating interest--it's just the minimum payment you have to make to keep them from increasing your interest rate further. You'll also have to keep making those payments during medical school--there's no in-school deferment.

Take out the federal loan. It's lower interest, safer, and you can defer it during medical school. Unless you have a job in medical school the only way you can pay off that credit card is via your med school loans, which will be at a higher interest rate than the undergrad loan you could've taken out.

If I were you my options would be:
1) Use savings or borrow from family
2) Work more hours if I can maintain my grades
3) Get a federal loan
4) Get a private loan
5) Credit card
6) Loan shark or sell my kidney.

Thanks for your response. That cleared it up a lot.