Hello All! So as most of you know I've been a long term poster here and a sporadic blogger. My husband and I are in decent shape financially for young married graduate students and are working toward several goals at the moment. We already have a 6+ month e-fund and are putting away $5K a year in retirement. Currently we are both graduate students, but my husband also works full time.
So here is the specific situation. In January DH's Student Loans come due, $13K at 6.8%. In April, my lease runs out. In May/June we are expecting a baby!! DH will work from home over summer and part time next school year. We will have $15,000 saved by January ostensibly to buy a car. Here are my options:
1) In January, start paying the student loans. In April, buy a car and pay cash.
2) In January, pay off the student loans with cash. In April, finance a car.
3) In January, start paying the student loans. In April, live without a car as long as possible. In May/June, have the baby. Later, buy a car and decide what to do with the cash.
4) In January, pay off the student loans with cash. In April, live without a car as long as possible. In May/June, have the baby. Later, finance a car.
I'm willing to hear other plans people can think of. My original plan was to go with #1, but now I'm leaning more toward #4.
There are two final small factors in our decision. My in-laws are paying DH's undergraduate loans for him, and they are all serviced together. Paying separately might be a pain in the butt. Also DH is currently waiting for the California bureaucracy to pay $2,000 toward his student loans for his teaching service. We are not entirely sure which loans they will apply it to. We cannot get a clear timeline for when this payment will apply (it has to be cleared in the state budget). There is a small chance that in 2 years he could requalify for this program, but for now his school is too nice.
So here is the specific situation. In January DH's Student Loans come due, $13K at 6.8%. In April, my lease runs out. In May/June we are expecting a baby!! DH will work from home over summer and part time next school year. We will have $15,000 saved by January ostensibly to buy a car. Here are my options:
1) In January, start paying the student loans. In April, buy a car and pay cash.
2) In January, pay off the student loans with cash. In April, finance a car.
3) In January, start paying the student loans. In April, live without a car as long as possible. In May/June, have the baby. Later, buy a car and decide what to do with the cash.
4) In January, pay off the student loans with cash. In April, live without a car as long as possible. In May/June, have the baby. Later, finance a car.
I'm willing to hear other plans people can think of. My original plan was to go with #1, but now I'm leaning more toward #4.
There are two final small factors in our decision. My in-laws are paying DH's undergraduate loans for him, and they are all serviced together. Paying separately might be a pain in the butt. Also DH is currently waiting for the California bureaucracy to pay $2,000 toward his student loans for his teaching service. We are not entirely sure which loans they will apply it to. We cannot get a clear timeline for when this payment will apply (it has to be cleared in the state budget). There is a small chance that in 2 years he could requalify for this program, but for now his school is too nice.
Comment