Question about student loans

Mods: If this is in the wrong place, please move it! I wasn’t sure where it should go.
I am 18, and have just been offered some student loans for college. I would like to be able to build some credit (other than a cell phone and a credit card) Is this a good way to do it? If you pay the loan right back (say, within 3 months or so) does it go onto your credit report? What are the good and bad of these loans?
Thanks ya’ll! :smiley:
Amy

  1. Read up on the student loans being offered, especially ALL the fine print.

  2. ASK questions!

  3. Check out the source - http://www.ed.gov/topics/topics.jsp?&top=Financial+Aid

Financial aid departments of universities usually have brochures and other printed info. about this issue, too.

Do you mean 3 months after you graduate or 3 months after you get each loan (which can be per semester)? If you keep a running tab till you graduate, the loan shows up on your credit report as something like “loan not in repayment.” I say it *can * be one way to build a good credit history.

It appears to me you’re talking about repaying the loan immedately, not after graduation. Just borrow it for the sake of borrowing it, and pay it back immediately to enhance (or create)your credit history. Is this correct?

On many student loans you do not accrue any interest debt as long as you remain in school. If that’s the case here, and youtruly don’t need the money, then take it and slap it into an interest bearing account. Pay it off immediately upon graduation. I’m pretty sure this is legal, but you better talk to a school financial rep before doing so. Rather than flat out admitting you have no need of the money, phrase your questions in terms of what restrictions their are on how you use it.