I am going back to school to finish my masters. I’m trying to pay for the sucka without student loans and I had no idea how much graduate school really costs. It’s a shame, I know. 6 hours of classes will be around $1200. Whooo! How the heck am I supposed to fit that into my budget? The problem is I really don’t have to take six hours. Five would be good enough, but at 6 hours my students loans can be deferred and technically I wouldn’t have to pay interest for the time that I’m in school plus six months. I could use the money that I would normally use for my student loan to pay for school, but I hate the thought of not paying for it through my discretionary spending.
I am definite that I will pay for school through my own means. That is, cutting back on miscellaneous spending and putting any extra money towards school, but what should I do about my student loan being deferred?
- I have no credit card debt, but I do have a smaller student loan valued at 2,500 that I could pay on.
- Emergency fund. My emergency fund is looking pretty skinny ($1,500). That extra $200 would really help me out.
Hmm, Yeah. I’ll do my emergency fund. I’ve learned my lesson about loaning money and it would be so cool if I could reach my Efund goal ($18,000 by 2013) a few months earlier.
“Girl, why don’t you just continue to pay on the student loan?”
Hmmm, You may not agree with my reasoning, but the interest I pay on my student loan is tax deductible, I am clocked at a 20 year pay off and I’ve grown to accept it (pitiful I know), and finally having a good healthy efund is just good sense. However, I believe I pay about $30 towards my principle ($190 on interest!!!) per month and I’ll continue to pay that so that I don’t extend my pay off period any longer.
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