* Piggy bank robbery
Posted on November 21st, 2008 by mdl. Filed under Family & Friends.
So the bill is in for Diana’s next semester of school. Should we snag a student loan and worry about paying the piper at a later date? Or should I snag some cash from an account that was not intended for that use…
I’m torn between my stand on no debt, and my stand on only using cash for what it was purposed. So, I ask you. Some of you are walking down the same road as Diana and I in this, some of you are about to, and some of you have already walked through it.
This is one of those things that I can give a convincing argument in both directions therefor I’m left sitting on the top of the fence which isn’t terribly comfy by any stretch of the imagination.
5 Responses to “Piggy bank robbery”
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November 21st, 2008 at 9:10 am
I ran into the same issue and decided to take the loan. Is this a subsidized student loan? If so I think it is an excellent way of delaying payment without incurring any interest. I would take it and put the money you would’ve spent into an account/CD to pay off the loan before interest begins.
November 21st, 2008 at 9:36 am
I would take out the loan. You get a tax perk and can let your efund sit in the bank collecting interest. I am totally with you on the debt free thing, but I consider student loans acceptable debt.
November 21st, 2008 at 9:57 am
Is it a picket fence?
I thought about this plenty since I plan on finishing up some courses in the next year or so. Jamie and I have some moooney stashed away for safe keeping, and have enough to cover courses. My thoughts were though “What if I pay this bill off, and I lose my job, or the car takes a total crap” just a thought. I will be going with student financial aid when I finish things up. If I didnt own a home, have kids, and 2 cars I would probably just spend the money and re-save, but obviously thats not the case.
November 21st, 2008 at 11:08 am
If you’ll still have an emergency fund after you pay the school bill, I personally wouldn’t take the loan. If you’ll be hanging high and dry should something happen if you pay the bill now, then take the loan. Not sure what your exact situation is, but Nick and I are trying to pay off our debt as quickly as possible so that we can start a family.
I don’t regret going to college or where I went, but I do regret the amount of debt I incurred and now have to keep working to pay off. Not cool. Guess it just depends on what your future plans are.
Anyway, see you at Thanksgiving!!
November 21st, 2008 at 4:23 pm
I don’t know what student loan rates are at, but also consider that home equity loans ring in at 3.75/4.25%. With tax benefits and a savings account at 2.75%, I wonder if you could do more than break even.
Also remember the reality of the situation. Student loans don’t kill, at worst they slap. If something goes horribly wrong and you lose your jobs, a student loan won’t break you. You can delay payments for a long time, and in the worst case scenario all you have to do to delay payments indefinitely is to go back to school. In principle, debt=bad. In reality, the hurt is quite variable.