| Advice for a troubled Medical Student Investor |
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CyberAl4
New Poster
Cash: $ 0.45
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Location: New York
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| Advice for a troubled Medical Student Investor |
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I am a 25 year old medical student living at home with minimal expenses except for my tuition. My school costs $45,000 a year. I have taken out $90,000 for the last two years and will take out another $90,000 for the last two years totaling $180,000 of debt at 6.8% interest. I will have to pay the loans back a few months after I graduate. In the meantime I have been paying off the accrued interest so it does not capitalize at maturity date.
I have $30,000 invested in the stock market. I took a big hit the last couple of years (started with 42,000).
My dilemma: I have just inherited $45,000 and I am not sure what is best to do. Do I send a check to my loan bank and pay my loan off a bit? Do I calculate how much interest will accrue over the next couple of years, put that money aside to be able to pay off the interest before it capitalizes and put the rest in a CD? Buy bonds? Invest more in stocks?
Any advice is greatly appreciated.
Thank you in advance,
Alex
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Thu Apr 01, 2010 6:51 pm |
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coaster
Senior Advisor
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Alex, is there some reason you need to pay the loans back "a few months after" you graduate? Normally, student loans are paid back over a lengthy period of time.
I guess I would use the inherited money to net out one year of planned borrowing, so that your total loans will be one-fourth less.
~Tim~
Eye Candy : Why Whimsy
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Sat Apr 03, 2010 5:30 am |
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CyberAl4
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Cash: $ 0.45
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Joined: 01 Apr 2010
Location: New York
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I have to START paying them back 6 mths after I graduate. I was thinking that if I could make more than 6.8% on the money then it would make sense to invest some way.
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Sat Apr 03, 2010 1:57 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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Oh, sorry, of course. DUH!! 
I don't think that's money you want to invest right now because it's money you'll need within the next five years. It's not generally a good idea to invest money you'll need in the near future because of the market ups and downs. You might need the money when it's down and have to sell at a loss.
~Tim~
Eye Candy : Why Whimsy
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Mon Apr 05, 2010 7:14 am |
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