Qualifications for Student Loans

[JulyZerg]

My friends wondering how he can get the most from his student loans. He has about $5000-8000 currently in his bank account and wants to keep it liquid for other investment purposes. He doesn't want to use his money at this moment to pay for courses, what should he do? Will it be a problem that he has that amount of money in his savings account for student loans?

Hes scared that if he puts that he has $5000-8000 and lives at home, than maybe Financial Aid won't help him out. He doesn't mind borrowing it and paying it off after graduation, since interest rate is quite low right?

He asked me if he should take most of his money out and put it in his moms account until he gets approved for student loans? I told him, they might be able to check and wonder why he took out $6000-7000/8000 for no reason.

Your thoughts guys?

Thx

[MindBomber]

I don't think your friend should commit fraud.

[!Yaminashi]

Yeah he'll get audited for sure

[JulyZerg]

Originally Posted by MindBomber

I don't think your friend should commit fraud.

I don't really think hes committing fraud. It's not like hes trying to take the money and run or do anything malicious. He's not wealthy at all(maybe his parents own million dollar companies but doubt it..) and would need to borrow student loans for his studies. He told me that his grandpa/grandma both gave him a big chunk of it for finishing high school and getting accepted into UBC.

He probably thinks his money can be put to better use and yielding a higher gain than the interest rate for student loans.

[instantneedles]

I'm not quite sure how it works, but I've had many friends apply for a student loan and had gotten it despite being very well-off and have a part-time job and such. One guy used it to buy a car

[GGnoRE]

Audits are random and it is very unlikely your friend will be chosen for audit. That said, I should mention I was chosen for an audit in my 2nd year lol.

How much will his tuition be? Will he be living at home or on his own?

[Mining]

I know many people that do this. They have had no problems.

[MeowMeow]

My friend took out about 5g and left $500 in his bank and applied. No problem.

And this is just a story I heard but.. one of my friends told me that her friend lied that he was living by himself (he used his friend's address) to get extra money as well.
I highly don't suggest it (especially because like I said it's just a story I heard from a friend of mine)

[ilovebacon]

I am interested in this topic as well. Please tell me more.

[JulyZerg]

Anyone know?

[rk604]

just take it out of the bank...put it under parents or relatives bank account. simple