I recently inherited just under $100,000. I just graduated from college and I have about $27,000 in student loans. I also plan to go to grad school next fall (the career path I have chosen requires a masters degree), which will cost another 40K minimum. Even if I choose a state school, minimum yearly tuition at the cheapest school is 18k for the program I am looking at.
Now for my questions. Should I immediately pay off all my student loans from undergrad? Should I pay off the highest interest loans and make payments on low interest ones? How will each choice affect my credit?
If I do pay off the undergrad student loans in full, should I pay for grad school out of pocket? I plan to work during school (as I did throughout undergrad) to pay for living expenses.
And finally for the chunk of money left over from all of that, how should I invest? Down payment on a house, stocks?
My tentative plan would be to pay for all of my education with the money in order to avoid any more loans. I am not sure what I will do with the remaining money, but I plan to invest it in some way.
Thanks for the help in advance!
Submitted June 17, 2019 at 09:03PM by jimzybabe https://www.reddit.com/r/FinancialPlanning/comments/c1vru4/how_to_spend_inheritance_wisely/?utm_source=ifttt
