Should I use my 401 to pay my school fees?

[Nomad]

Hello Everyone!

I need some advices. I am thinking about using my 401 as a mean to pay my tuitions. Why? Because I am tired of working two jobs and going to school. I have been doing this for years. Now I feel like I am going to school forever. Please, don’t tell me to get a loan in order to pay my tuitions. I cannot qualify ( I need a co-signer…).

What is the point to save money while I am in college if I cannot even afford my school fees….? Maybe it is better to graduate first. Then find a better job and save money. At the same time I don’t feel comfortable with the idea of using my 401, after saving for so long…

Advise are welcome...

[maat55]

I would not pull money from your 401k. But, I would not contribute to it either.( with exception to the match if desirable)

I agree that you can finish school first, then save after.

[disneysteve]

How old are you? How much is in your 401k and what other savings do you have? What is your current income? How much money are we talking about needing for school? Is it possible to come up with that money by working while in school rather than tapping the 401k?

Why don't you qualify for student loans? I borrowed over $100,000 for school and never needed a cosigner and I was young and broke.

[Nomad]

Thanks for your replies Maat and DisneySteve!

DisneySteve!

I am actually 29. I have about $10,000 in my 401K. I don’t have any other savings, but my checking account. I make about $35,000 a year as an administrative assistant. I cannot qualify for student loans because I don’t have enough credit (no mortgage, no cars etc…). I tried with different institutions in the past. They all asked me to find a co-signer. What I have done! But the only person who was willing to cosign for me ended up filing for bankruptcy two months later… (difficulty to pay mortgages…)

I have just started building my credit now. It will take me some time before I can get a good loan… That’s why I am thinking about using my 401K as a mean to pay my school fees.

[fruitbowlk]

No. Think about getting scholarships. And if you work two jobs now you might not have to later.

[disneysteve]

Originally Posted by Nomad

I cannot qualify for student loans because I don’t have enough credit (no mortgage, no cars etc…). I tried with different institutions in the past. They all asked me to find a co-signer.

I guess things have really changed. I went to college when I was 18. I had no credit history at all but had no trouble getting student loans in undergrad and graduate school. I never needed a cosigner. That's insane. What college student has a credit history?