Comments on: Student Loan Debt vs. Retirement vs. Savings – Dave Answered http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/ Pay off debt. Save. Give. Live your mission. Fri, 10 Feb 2012 04:12:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Matt Jabs http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/#comment-10830 Matt Jabs Sat, 09 Oct 2010 17:52:43 +0000 http://www.debtfreeadventure.com/?p=4452#comment-10830 Why would you borrow if you have the money? To be frank, that is not wise. First, you will not have to part with all $100k up front, you'll just pay as you go. If you continue working at least part time you also buffer the amounts needed to pay for schooling with the income. Where do you have the $100k now? Is it invested somehow, or is it liquid? If I were you I would invest half of it in <a href="http://www.debtfreeadventure.com/go/lci.php" target="_blank "rel="nofollow" rel="nofollow">peer to peer lending</a> which is paying an average return of nearly 10% (I'm earning closer to 11%,) and keep the other half liquid for future schooling costs. Hopefully this $100k is separate and distinct from your Emergency Fund, do not commingle those monies, have a separate account for each. Why would you borrow if you have the money? To be frank, that is not wise. First, you will not have to part with all $100k up front, you’ll just pay as you go. If you continue working at least part time you also buffer the amounts needed to pay for schooling with the income.

Where do you have the $100k now? Is it invested somehow, or is it liquid? If I were you I would invest half of it in peer to peer lending which is paying an average return of nearly 10% (I’m earning closer to 11%,) and keep the other half liquid for future schooling costs.

Hopefully this $100k is separate and distinct from your Emergency Fund, do not commingle those monies, have a separate account for each.

]]> By: her every cent counts http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/#comment-10819 her every cent counts Sat, 09 Oct 2010 15:42:26 +0000 http://www.debtfreeadventure.com/?p=4452#comment-10819 In a semi-related question... If you want to go to grad school and have the cash to pay out of pocket, do you think it's better to do this or take out a loan for school and let the cash continue to grow (hopefully) in various risk assets. I've saved up about 100k and want to get an MBA, which will probably cost that or more. I'm thinking I should do all loans, but I'm not sure if a bank would let me go that route if they know how much I have in savings. Do I have to reveal that and does this make any sense? In a semi-related question…

If you want to go to grad school and have the cash to pay out of pocket, do you think it’s better to do this or take out a loan for school and let the cash continue to grow (hopefully) in various risk assets. I’ve saved up about 100k and want to get an MBA, which will probably cost that or more. I’m thinking I should do all loans, but I’m not sure if a bank would let me go that route if they know how much I have in savings. Do I have to reveal that and does this make any sense?

]]> By: Paying Back Student Loans http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/#comment-9905 Paying Back Student Loans Thu, 01 Jul 2010 03:30:35 +0000 http://www.debtfreeadventure.com/?p=4452#comment-9905 All the answers for Dave are pretty good so I won't add to it but for those who want to go back to college right now... here is some advice: The best thing for people wanting to go get an education is to do what ever it takes to avoid private student loans. Those types of loans are high in interest and can literally ruin a person's credit and way a life right off the bat. My 8k in private ballooned due to interest compounded monthly during school to 30k over the years in school. Choose a cheaper college and carefully choose a degree. Fill out the FASFA form and try to get grants to help pay for your education. Don't waste your time and money on a worthless degree where you won't be able to get a job when you finish with your studies. If you are already in large debts with student loans then pick up a second job if you have to so that you can knock down the principal quickly or you may never see the light of day. The government ones are much better because they offer repayment options and flexibility, private ones do not. Just my 2 cents ~Jayme All the answers for Dave are pretty good so I won’t add to it but for those who want to go back to college right now… here is some advice: The best thing for people wanting to go get an education is to do what ever it takes to avoid private student loans. Those types of loans are high in interest and can literally ruin a person’s credit and way a life right off the bat. My 8k in private ballooned due to interest compounded monthly during school to 30k over the years in school. Choose a cheaper college and carefully choose a degree. Fill out the FASFA form and try to get grants to help pay for your education. Don’t waste your time and money on a worthless degree where you won’t be able to get a job when you finish with your studies. If you are already in large debts with student loans then pick up a second job if you have to so that you can knock down the principal quickly or you may never see the light of day. The government ones are much better because they offer repayment options and flexibility, private ones do not. Just my 2 cents ~Jayme

]]> By: Nick http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/#comment-6276 Nick Wed, 13 Jan 2010 10:08:48 +0000 http://www.debtfreeadventure.com/?p=4452#comment-6276 Has Dave considered having a set amount of money transferred from his checking account into his savings account each paycheck? Has Dave considered having a set amount of money transferred from his checking account into his savings account each paycheck?

]]> By: Olivia http://www.debtfreeadventure.com/student-loan-debt-vs-retirement-vs-savings-dave-answered/#comment-6036 Olivia Wed, 06 Jan 2010 13:26:45 +0000 http://www.debtfreeadventure.com/?p=4452#comment-6036 Once Dave marries, his housing situation will change. I assume he and his wife will get their own apartment. That will increase housing costs. How does his finacee feel about the way he's financing his education? Is she coming into the marriage with a job, assets, student loans? They'll have to tackle those things together. It might be good for them to work out a joint, after marriage, spending plan. In thinking ahead, it might also be wise to consider how children change the situation. Will they go to one income, etc. How will loan repayment work then? Once Dave marries, his housing situation will change. I assume he and his wife will get their own apartment. That will increase housing costs. How does his finacee feel about the way he’s financing his education? Is she coming into the marriage with a job, assets, student loans? They’ll have to tackle those things together. It might be good for them to work out a joint, after marriage, spending plan. In thinking ahead, it might also be wise to consider how children change the situation. Will they go to one income, etc. How will loan repayment work then?

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