If there is even a moderate possibility that you will take a PSLF qualifying job, using your own money for school is just plain dumb. By taking federal loans and leaving your money invested, you maintain optionality. You can always change your mind, take your money, and pay off the loans. All it will cost you is interest and loan fees, but those are offset by investment earnings. But you can't go back and take out loans for the tuition you paid 3 years ago once you realize you're going to take a public defender job and will qualify for PSLF.Greetings,
I posted viewtopic.php?p=7964078#p7964078 a few weeks ago and got some really helpful responses. I have chosen to take out student loans amounting to roughly $81k to cover tuition and all living expenses while in school for my first year. The new estimate for total loans out of graduation is $235,000. I will have $200,000 to take care of myself. Many suggested paying the tuition directly and avoiding the loans. My current plan is to use student loans this year and allow the inheritance to grow for the next year (I am hoping for 5-8% growth) and then use the principal to pay for my second year's tuition to avoid the loans, and rinse and repeat for my third year to hopefully graduate with only $80k in loans and still have (hopefully) $50k in savings.
My question is, do I want to do a money market, lump sum into t bills, a t bill ladder, CD, savings bonds (https://www.irs.gov/pub/irs-pdf/f8815.pdf states that the earnings may be tax free if I use them to pay for tuition? May need closer eyes), or some other method of saving that will allow the cash to be accessible by next year while maximizing growth? Any and all input is appreciated.
Thank you!
M24
Single
CA Residence
$0 income
Statistics: Posted by White Coat Investor — Sat Aug 17, 2024 4:29 pm — Replies 3 — Views 414