| Spending the Nest Egg 4 Grad School or Taking Student Loans? |
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maherlauren
First Time Poster
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| Spending the Nest Egg 4 Grad School or Taking Student Loans? |
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I have a small nest egg ($10,000) in a MMA that I am hoping to one day use for a downpayment on a home. I am about to go back to grad school while continuing to work full time and am wondering if it is better for me to spend that nest egg money in my first year of grad school before incurring any student loans or continue to save the money while taking out student loans for the 2 years I will be in school?
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Thu Apr 28, 2005 5:38 am |
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joseanes
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Location: Marlborough, MA
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| Re: Spending the Nest Egg 4 Grad School or Taking Student Lo |
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quote:
Originally posted by maherlauren
I have a small nest egg ($10,000) in a MMA that I am hoping to one day use for a downpayment on a home. I am about to go back to grad school while continuing to work full time and am wondering if it is better for me to spend that nest egg money in my first year of grad school before incurring any student loans or continue to save the money while taking out student loans for the 2 years I will be in school?
How cheap are the student loans? (interest?)
If the interest is low... 3 / 4% Then keep the cash and put it into a CD at ING Direct (for a couple of years, while you go to graduate school).
If the interest on the loans is high... you may be better off using the cash.
-- Jose
http://www.MoneyAndInvesting.net
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Tue Aug 30, 2005 4:11 pm |
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Lambert
Contributing Member
Cash: $ 5.65
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Joined: 29 Aug 2005
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| Re: Spending the Nest Egg 4 Grad School or Taking Student Lo |
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quote:
Originally posted by maherlauren
I have a small nest egg ($10,000) in a MMA that I am hoping to one day use for a downpayment on a home. I am about to go back to grad school while continuing to work full time and am wondering if it is better for me to spend that nest egg money in my first year of grad school before incurring any student loans or continue to save the money while taking out student loans for the 2 years I will be in school?
yikes, tough situation.
I tend to look at education just as any other major purchase. I am a strict believer in zero debt.
With the possible exception of a house, anything you aim to buy or do needs to be budgeted and saved for. Personally, I would leave the nest egg alone and see what money I could free up to pay for school. Assuming first that there is no existing debt to be paid off. There is literally 100s of thousands of dollars on scholarships that go unclaimed each year. There are groups out there with cash they want to give away to help people go to school.
I am actually currently in a similar situation. If I can't get grants and scholarships, I don't go unless I can scrounge up the money. If I can only afford 1 class this semester, then one class is all I take.
sites like Fastweb.com can help you find scholarships and grants that you might qualify for. I know my zero tolerance debt policy isn't popular, but even if you insist on loans as an option, make sure they are the last stone you overturn. You'll likely be happier for it in the long run.
marC
Because the Law of Gravity Doesn't Apply to Credit Card Balances!
www.ExperiencingFreedom.com
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Tue Aug 30, 2005 4:56 pm |
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