Took out too much last year, now what?

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Took out too much last year, now what?

Postby finaidq » Sun Jul 24, 2011 4:40 pm

I am a grad student, but this is a more general question. I took out too much in student loans last year. I overestimated my costs of living expenses. I maxed out the stafford loans at 20,500 and then took out private loans on top of that of, let's say - 20,000. So, if I have 8K leftover, I really only needed 32,500. So, am I better off using the 8K to pay down the 20K loan that has a 7.9% interest rate and borrowing 32,500 for the coming school year, or should I just hold onto the 8k and take out less this year (24,500)?
Older debt should cost more, right? because interest is accruing continuously. But maybe the larger origination fee on the 32,500 would negate the interest that I would save. Anyone know?
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