Comments on: Should we deviate from our goals?

By: Carnival of Money Stories #71-Wander Around The World With Me | Value For Your Life

Tue, 05 Aug 2008 03:56:48 +0000

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By: Livingalmostlarge

Livingalmostlarge — Fri, 01 Aug 2008 13:26:57 +0000

GrnMtnGirl, good options! But yes the loan is subsidized. Second, we don’t take out loans for home repair or car repairs, that’s why we save cash for them. Perhaps too much but it is why. This degree, MBA, does not really apply to a my DH’s job. He is a scientist and it’s not continuing education or anything.

He couldn’t be a TA because he works full-time. And he is already going part-time. Putting the degree on hold is not a great idea considering that we would like to start a family.

By: GrnMtnGirl

GrnMtnGirl — Fri, 01 Aug 2008 06:33:39 +0000

I just wanted to say that I really like reading your blog and that this is tough. I thought I’d take a minute to share some of our options which may (or may not) be options for you to consider.
1) We don’t take student loans. But, they’re an option. A better option if they’re subsidized.
2) Pay cash and take a separate loan if necessary for house or car repairs (don’t incur any interest or loans unless absolutely necessary)
3) Get an employer to pay for you (that’s what we do for part of our loans each year)
4) Get a job as a TA or another part-time job
5) Put the degree on hold or take fewer credits.

Good luck making the best decision for you!

By: Finance Fiesta - Now With More Piñatas! | Counting My Pennies

Finance Fiesta - Now With More Piñatas! | Counting My Pennies — Thu, 31 Jul 2008 10:42:58 +0000

[...] presents Should we deviate from our goals?. I think we’ve all dealt with this question before. Go offer your suggestions to [...]

By: Livingalmostlarge

Livingalmostlarge — Tue, 29 Jul 2008 03:13:41 +0000

We have a large mortgage and $17k of student loan debt accrued over the past 2 years during DH’s MBA. That’s it.

We owe nothing else. We have $100k in retirement and about $15k in cash EF, and $5-20k fluctuating cash for tuition, home repairs, car maintenance, etc.

According to our networth it’s $232k.

By: MP - The Morphine Princess

MP - The Morphine Princess — Tue, 29 Jul 2008 03:08:20 +0000

I don’t have a sense of where you guys are with your debts. Are you completely debt free with the exception of the mortgage? If so, then sure – take the loan and maintain the savings program you are doing – because, as you mentioned, the loan interest and repayment are deferred until 6 months after DH’s graduation.

If you had a “net worth” account or a spreadsheet or other info where the numbers are more clearly shown, it would be easier to give you ideas, suggestions or recommendations. As it stands, right now I don’t know where you are with your overall debts to assets ratio, etc.

By: Livingalmostlarge

Livingalmostlarge — Tue, 29 Jul 2008 01:02:29 +0000

Right now because of the weakness of the dollar I convinced DH not to go on vacation this year. I’ve also cut our eating out, groceries, fun, and it’s all gone.

I mentioned this to others and did touch on it above, it all went to our doubling gas monthly, our heating bills, and our electric costs. It didn’t go to savings or debt because it was just eaten up with cost of living.

40% increase in natural gas this year and 30% last year. And electric has doubled in 2 years. So we’re not really spending more monthly it’s just been “reallocated”. Sigh.

By: Angie

Angie — Mon, 28 Jul 2008 22:41:10 +0000

I agree with Ashley, Debt Dieter and Kristy – take the loan, and pay it down with any stock options/bonuses that come your way. I’m generally not a fan of loans if you can cash flow something, but no matter how secure you think you are, nothing in life is certain. It would be better to keep your EF for a true emergency instead of using it to pay for something that you can get INTEREST FREE, and pay down/off in about 10 months.
Also, instead of trying to cut out your entertainment/eating out, etc. just pare it down. Try to shave off 83 per month – that’s 1k per year. Set it aside in it’s own high interest bearing account and use it to pay down his Staffords upon graduation.

By: Livingalmostlarge

Livingalmostlarge — Mon, 28 Jul 2008 21:51:10 +0000

LJ there is no interest on the student loans until DH graduate and then for 6 months afterwards. So this is an interest free loan.

Definitely the reason why I am considering it is because it does add up quicker than I bet I could imagine.

I am nervous about adding to debt, but I am also nervous about draining my Emergency Fund money and all cash on hand. Neither scenario really appeals to me to be honest.

By: LJ

LJ — Mon, 28 Jul 2008 21:47:55 +0000

I understand the hard decision but if you are really going to look at the situation I think you need to figure the interest rate you would be paying on the loan verses the dividend rate you would earn on the savings. I would base my decision on those calculations. I the long run I would decide which would earn or save you more. I am not sure if this really helps but as a person trying to get our of debt myself I am very cautious of adding more debt. Believe me it add up quicker than you think.