Paying Board in Adavance: Good or Bad?

[Prime_Time_Rider]

There is nothing illegal or unethical about using student loan money to pay horse board. It might be unwise from the perspective of having to pay it back. The taxpayer IS NOT paying for the student loan, the borrower is. If it is a federal student loan the interest rate is subsidized, if it is a private student loan no taxpayer dollars are involved.

As far as filing bankruptcy, federally guaranteed student loans are not forgiven in bankruptcy cases. If you file bankruptcy you still owe the money.

[arapaloosa_lady]

It’s usually not a good financial decision to pay bills in advance unless you get a large discount for doing so. You can certainly ask your BO for a discount if you pay a few months at a time. Some would love to work with you. But you lose your money if something goes wrong and you go early.

[frankiec]

[QUOTE=gottagrey;8838298]
Also - if this is a student loan, from a taxpayer perspective it doesn’t sit well to think the loan is being used for horse board. That’s right up there with the women who use their loan money to buy their new boyfriend of 3 weeks a new used car because his credit is no good and he said he’d pay back when he got his tax refund.[/QUOTE]

Im from the UK. I may have mentioned that before Over here its a cultural thing for students to spend most of it on alcohol and going out. On par at least with what it would cost to keep a horse, but I am aware horse keeping costs a lot more in the US! However, if student loans are for living costs and the OP can afford a horse within her budget then I dont think people should be getting cross about that. There is clearly some wiggle room with the money she gets and what she chooses to spend that on is up to her

[saultgirl]

OP I have no problem with you using the money to keep your horse cared for.

Good on you for upgrading your education.

[BeeHoney]

Definitely don’t pay in advance. There are plenty of boarding businesses that are a little more relaxed in their accounting than might be optimal. Also, this makes it very difficult to make a change should you (or the barn) prefer to. Just pay every month like everyone else.

As a side note, when you pay for things in advance, you are essentially giving a free loan to that party. Keep the money until it is necessary to part with it.

Personally I see nothing wrong with a student using some of their loan money to take care of an older pet, even a horse. I don’t think that going to school means that you have to put down your old horse if that isn’t the right thing to do for other reasons. As a horse owner, I think each of us does the best we can to provide for our animals in a reasonable manner. If the OP couldn’t afford it, I’m sure she would explore other options.

[skyon]

[QUOTE=Prime Time Rider;8838317]
There is nothing illegal or unethical about using student loan money to pay horse board. It might be unwise from the perspective of having to pay it back. The taxpayer IS NOT paying for the student loan, the borrower is. If it is a federal student loan the interest rate is subsidized, if it is a private student loan no taxpayer dollars are involved.

As far as filing bankruptcy, federally guaranteed student loans are not forgiven in bankruptcy cases. If you file bankruptcy you still owe the money.[/QUOTE]

I would suggest finding out specifics and remember the word assume can lead to bad things. Maybe the OP already has done that.

I’m rather blown away that someone would openly discuss using a cost of living grant to board a horse. And I understand wanting to house an aging pet, particularly a horse. But one man’s aging horse is another man’s out of bounds luxury.

The poster that used the word co-mingling of funds. Kudos. That is the word of which I would be very careful. I’m also coming from a perspective of seeing occasional audits of stipends for meals, cost of living i.e. internet, Phone; and I can say that everything is fine until it is not. When it is not, it becomes a tool to turn every stone.

The reason this is titled cost of living may just be a fluff title or it may be chosen for a reason that could implode under the right publicity.

@frankiec;8838366

Im from the UK. I may have mentioned that before Over here its a cultural thing for students to spend most of it on alcohol and going out.

Yes, but this is not the UK.

It’s not just the cost of boarding a horse, it is also the cost of education. Loans here regarding education had a bandaid put on them regarding spending but the costs are still escalating - and in turn escalating the loans. Hopefully the UK won’t go that route.

I’m a cynic on student debt. I think it is over-valued, granted nothing has come of it… yet.

[shea_smom]

I would not prepay board on a 27 year old horse. I’ve had people want to prepay on old horses and I won’t do it. I’d have to keep the money on hand in case the old horse passed away, to refund it. Hopefully your old oldster had many more years, but it is something to consider.

[JLR1]

Definitely don’t pay in advance. Trust me, quality of care etc. can change drastically at a boarding barn and you might want out and getting a refund might prove difficult. Also, paying in advance is allowing your money to work for someone else interest free so it’s not a wise move from a financial perspective.

[gottagrey]

[QUOTE=Prime Time Rider;8838317]
There is nothing illegal or unethical about using student loan money to pay horse board. It might be unwise from the perspective of having to pay it back. The taxpayer IS NOT paying for the student loan, the borrower is. If it is a federal student loan the interest rate is subsidized, if it is a private student loan no taxpayer dollars are involved.

As far as filing bankruptcy, federally guaranteed student loans are not forgiven in bankruptcy cases. If you file bankruptcy you still owe the money.[/QUOTE]

While there may be nothing illegal, last I heard horse board was not considered a “living expense” so IMHO would be unethical - particularly considering Americans owe 1.3 Trillion in student loans, more than 7 million borrowers are in default and millions more are behind in payment. So with those stats by all means pay your board with your education loan. Perhaps the US should adopt Australia’s system

http://www.nytimes.com/2016/07/10/upshot/america-can-fix-its-student-loan-crisis-just-ask-australia.html?rref=collection%2Ftimestopic%2FStudent%20Loans&action=click&contentCollection=your-money&region=stream&module=stream_unit&version=latest&contentPlacement=3&pgtype=collection&_r=0

[Dutchmare433]

Don’t pay in advance, we all know how fast boarding situations can go south. You’ve been given some good suggestions on how to keep the board money separate.

Student loans for grad school are not necessarily the same as loans for undergraduate degrees. Most of them are not subsidized, nor does it necessarily state in the loan what the money has to pay for. (I don’t want to speak in absolutes because loans vary.) But to clarify loan does not equal grant. And also, as mentioned above, student debt is not forgivable via bankruptcy.

In grad school I had a grant funded stipend that paid my salary and tuition. I used it to pay for rent, food, board, farrier etc. I had friends who took out additional loans on top of their stipends to help pay for their horses. (One of whom just finished her post doc and her loans are entirely paid off already.) I also had friends who had to take out loans to pay tuition as well as everything else, who again, also paid for their horses that way. It’s pretty common, and frankly, what else is the OP supposed to do with her 27 year old horse? Put it down because she’s in grad school? Wait to start grad school until it passes on its own?

[cuse]

Another doctoral student here. While I agree with the posters who encourage caution with student loans, I also agree that taking out loans for living expenses (and even some luxuries, like pet ownership) is relatively common with my cohort. I don’t do it, but many people are less skittish about loans than I am. I see no problem with it as long as you have done your due diligence and are comfortable with the amount and the terms of the loan.

But don’t pay board in advance!

[meupatdoes]

[QUOTE=WindyCityRider;8837659]
I currently began a doctorate program, and will be receiving a large lump sum from a loan I was approved for that will be used specifically for living expenses for the semester. I thought of the idea of paying for my horses board four or five months in advance, simply to have one less thing to pay every month and to have the peace of mind that his board is done and take care of my entire first semester. I have never done this before, and although I tried to do some research online on the pros and cons I really couldn’t find much.

Has anyone ever paid several months in advance for board, or have really any idea on if this is a good or bad idea?[/QUOTE]

I would never, ever, EVER do this.

EV.ER.

Your money is your bargaining power. It is much more powerful when it is in your pocket and they still have to come get it than when they already have it and you have to ask for it back if something happens.

If your horse dies, for example.

“Oh hey could you just write me a check for the four months board I prepaid?”

…???

I would take the opportunity to learn about online banking where if you dont want the hassle you can set up a monthly check for your bank to do for you.

[meupatdoes]

[QUOTE=DogIsMyCopilot;8837712]
I did that once for a different reason and was sorry for it. One facility I boarded at had a minimum stay of six months and wanted post-dated cheques for that time on arrival. They explained it with having brood mares on the premises and not wanting a lot of turnover. Fair enough, the facility looked good and had everything I was looking for.
Turned out the bo was a total jerk, the main barn hand was an alcoholic and their dogs were chasing horses around the pasture.
Never again.[/QUOTE]

That it when you write down the numbers of all the checks you are handing over so you can put a stop payment on them later if necessary the second your trailer has left the driveway.

[Ruth0552]

Several misconceptions I’ve read here:

1. “Federal Student loans the interest is subsidized” Does this still happen? I most definitely had UNsubsidized federal stafford loans while I was in college- about 10 years ago. And the subsidized ones only have the interest subsidized WHILE YOU’RE IN SCHOOL. After that the interest is all you baby.

2. She is not getting a cost of living grant. That is entirely different. Grants are things that given to you and you do not have to pay them back- kinda like a scholarship. She got student loans to pay for living expenses. With some programs it is not possible to work and complete the program at the same time. The only option is borrowing money.

[Guilherme]

[QUOTE=meupatdoes;8838847]
I would never, ever, EVER do this.

EV.ER.

Your money is your bargaining power. It is much more powerful when it is in your pocket and they still have to come get it than when they already have it and you have to ask for it back if something happens.

If your horse dies, for example.

“Oh hey could you just write me a check for the four months board I prepaid?”

…???

I would take the opportunity to learn about online banking where if you dont want the hassle you can set up a monthly check for your bank to do for you.[/QUOTE]

Concur that pre-paying is a bad idea.

How about with a discount? Still dicey; if you prepay but don’t take a discount you’ve got an argument to get a refund if something goes wrong. If you prepay and take a discount your argument for refund is much weaker as the barn owner can argue each party to the contract gave a consideration for a fixed sum for a fixed period. The horse owner got a discount and the barn owner got a lump sum. Each assumed their own risks for problems.

Equine ownership is a luxury. If a person wants to spend their money on luxuries then that’s their business (as long as they don’t later whine about not having enough money for necessities). If the money is coming from a fund that is intended to provide for daily living necessities the fund managers might, justifiably, have some “heartburn” about supporting a retired horse.

G.

[cheektwocheek]

Prepaid, got screwed, lesson learned. Funny how the ethics & care goes away once the big check clears.
Examples of my mess=

1. Found my guy in sheep fencing with boards down & nails exposed during an unexpected visit, took pictures.
2. Prepaid for Monthly trims of $55, feet looked horrible. Took pictures. Told BO I was unhappy with trims/lack of & was told… how dare you question my farrier? Really?
3. Had paid above & beyond normal board fees according to BO’s own facebook page.
4. Had prepaid for monthly deworming, got him home & local Vet found his fecal Loaded…
5. Sent a years plus worth of supplements, 7 months later there was nothing left.
6. Wanted 60 days notice even though contract said 30.
7. Finally got him back and he was spooky & head shy with his forelock practically gone.

[skyon]

[QUOTE=Ruth0552;8838865]
Several misconceptions I’ve read here:

1. “Federal Student loans the interest is subsidized” Does this still happen? I most definitely had UNsubsidized federal stafford loans while I was in college- about 10 years ago. And the subsidized ones only have the interest subsidized WHILE YOU’RE IN SCHOOL. After that the interest is all you baby.

2. She is not getting a cost of living grant. That is entirely different. Grants are things that given to you and you do not have to pay them back- kinda like a scholarship. She got student loans to pay for living expenses. With some programs it is not possible to work and complete the program at the same time. The only option is borrowing money.[/QUOTE]

Yep, I think you are correct.

However, if I’m right being unsubsidized is in part why there are so many warnings on federal student loans.

Just please keep a huge yellow caution sign and if people are at a point openly discuss using loans for horse board (I don’t think they are all aging horses) I would really use caution. It’s usually at that point when everything thinks its fine without really thinking about what they are saying, that sh#t happens.