College Funding ?

[jscott2135]

I have a problem. I have 12 classes lef to take for school. I really lucked out with my school and they are covering my current 3 classes (which saves me about 4 grand) Whooohooo! But that leaves me with 9 classes I will still need to pay for for a total of about 13,000. Up until now I have been working and my company paid for most of my college,so I have zero student loans and would love love love to graduate that way. If I stick with my current schedule I will finish school in March of 2012. I am not working now and really struggling with what options I have for how to pay. I realize I may have to incur some debt but what is the smartest way to do this.

Some other info that is pertinent. My husbands income covers our expenses with not much left over, but we do contribute 15% to his retirment. We have close to $15,000 in savings but it was really intended for an emergency fund, and his company is eyeing layoffs right now so I am really reluctant to touch it! I am wondering if I have him stop contributing to the 401k until I can pay off the college...do I get a loan? If so what kind is best? We make about 125k a year so I dont believe financial aid is an option. I would find a part time job but I am in school full time right now and almost 7 months pregnant so at least until December, thats prob not an option.

HAHA - I dont want to make excuses or sound like a whiner, I'm willing to do the hard work here, but since 80% of college was easy and paid for I'm at a total loss on navigating how to get through the end. I would love if this community could point me in a good direction. I always hear from the financial gurus that personal loans for college are a big NO NO. HELP please

[jpg7n16]

Is the $125k based on both of you guys working? Or just him? When do you plan on going back to work? Will the degree advance your career?

Although others are anti-any-debt-whatsoever, I'm not so much. I'm anti-any-high-interest-rate-debt-whatsoever. School loans have low interest costs - probably around 4-5%.

I would likely talk to your school's financial aid department about what student loan options are available to you.

Once you start working again, you can easily pay the loans off in a few months by controlling your budget.

I see no need to reduce the 401k contributions. Keep them at 15%.


Which financial gurus do you listen to?

[jscott2135]

Hey there. I am a big fan of Dave Ramsay. Not so much the religious overtones but I get past that because I believe his advice is pretty sound. So financially we are in decent shape. We have one truck loan and our house payment. We recently relocated to a high cost of living city, that is by way of me explaining that on 125k annually I am struggling to figure out how to pay for college, because even I recognize that seems like a good income. The 125 is his salary alone - but we honestly live within our means, we don't incur debt and our biggest costs are a mortage payment of 1850, child support of 950, and the truck loan of 600 (its a 3 year loan so we can pay it off quickly). I figure if we got rid of everything including cable and really made an effort to save on gas and groceries we could save an additional 300-375 a month.

As for your question regarding will I go back to work. The answer is slightly more ambigious, I don't know. Hence why I'm so shy about aquiring more debt. What I want is the freedom to go back to work if I want, and in my industry - pharma, I don't have a chance of competing in this west coast market without a degree. If I aquire the debt by getting a loan then according to Dave Ramsay I should put the 401k towards it until all my debt is paid off. But I tell ya, that just feels difficult to me. Orginally my husband would have been due for a 15k bonus in March, and I would have just gone to school, paid in cash and paid back our savings in March...but with layoffs in the future...bonus seems unlikely at best. And in this economy I feel like a toad for even sounding like I'm complaining about such a perk.

[jpg7n16]

If you were truly following the Dave plan 100%, you would have lowered the 401k contributions to pay off the truck too. (or sold the truck and paid cash for a beater, and only have $1k in the EF to pay off all debts including the truck and college)

I like alot of what Dave has to say, but I don't agree with him 100%. Nor do I feel it's best for your situation. You have a large income, easily capable of repaying the loan - and given how you're scared for your husband's employement, the school loan gives you a long timeframe for repayment, allowing you to hold onto the cash in your EF.

Though you have to wonder (and he'd prob ask this question too) - if you're not going back to work, do you even need to pay to finish the degree at all??

[mcfroggin]

I would start looking into student loans. If you can qualify for a low rate, go for it and keep increasing the 401k. Most people have student loans that they pay or paid off. I'd get the loan.

I also wonder why you want a degree if you don't plan to go back to work. Could you transfer credits later to a cheaper college to get a degree later? With a new child on the way, do you really plan to work soon? You don't need to answer these questions on this forum - just somethiing for you to think about. If it were me, I'd finish the degree and take out loans.

[alphadore]

Is this for you or your brother?