I'm going to grad school next year and its going to cost $20k (total, 1 year program).
My current AGI is ~$50K, so I didn't get qualified to receive any FAFSA aid (except direct unsubsidized loans at 6.8%).
My current savings are at about 40K. So I have two choices:
Pay for school in cash, or get a student loan.
- If I paid for it in cash, it would save me the extra stress of paying a long term student loan bill.
- If I took out a loan, I would be able to keep gaining interest and returns on the cash I didn't spend. With some calculation, I could set up my savings and investments so that the return gains would offset the accrued interest on the student bill. Which would in turn mean I'd be paying for school over an extended period of time at no extra cost (a 0% apr, if you will). As long as my returns average over 6.8%, I would not be spending money on student loan interest. Even if I invest in a savings account I would be able to effectively reduce my student loan down 2-3%.
Please give me your thoughts. Thank you.
Submitted December 20, 2018 at 05:21PM by rbithrowaway123 http://bit.ly/2A8VmIS
