Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd actually borrow the 10k from my 401k in this instance.

But I’m looking for another job, and if I find one I would have to pay back the full amount within 60 days of leaving.

So you are going to try to find a new job prior to completing the extra education?

Just... No. That is not what that says.

Just...yes, That is what that says.

This is OP. What it says is that if I find a new job, I would have to pay the loan within 60 days. If I take a loan, I would want a 12 to 18 month period to pay it back, but if I find a job before I was planning to finish paying it would cause a problem, potentially.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd actually borrow the 10k from my 401k in this instance.

But I’m looking for another job, and if I find one I would have to pay back the full amount within 60 days of leaving.

So you are going to try to find a new job prior to completing the extra education?

Just... No. That is not what that says.

Just...yes, That is what that says.

Anonymous wrote:OP here. Apparently the program doesn’t qualify for student loans, so I guess if I get in cash is my only option. There is a discount for paying up-front, though.

Hi, OP. I popped on the thread to say that the certificate would probably not qualify for student loans -- my husband is doing a certificate program as well and we are paying out of pocket. It's a bit of a struggle for us financially with daycare plus mortgage plus other student loans plus I'm pregnant with #2, but I'm hopeful that at the end of things that he will be able to get a higher-paying job and it will be worth it. In your shoes, I would scale back on 401(k) contributions to pay for the program and then ramp back up your savings once you get a higher-paying job. Best of luck to you.

OP here. Apparently the program doesn’t qualify for student loans, so I guess if I get in cash is my only option. There is a discount for paying up-front, though.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd actually borrow the 10k from my 401k in this instance.

But I’m looking for another job, and if I find one I would have to pay back the full amount within 60 days of leaving.

So you are going to try to find a new job prior to completing the extra education?

Just... No. That is not what that says.

Anonymous wrote:

Anonymous wrote:I'd actually borrow the 10k from my 401k in this instance.

But I’m looking for another job, and if I find one I would have to pay back the full amount within 60 days of leaving.

So you are going to try to find a new job prior to completing the extra education?

Pay half with cash you have and maybe only contribute what employer matches (3%). Don’t contribute max.

If you have perfect credit, you should be able to get a 0% interest card. Be absolutely sure you can pay off balance by end of 0% period. Some places charge a credit card fee. If so, charge other expenses and pay for tuition directly.

That 10k will be spread out over 2 years so it sounds like you can pay half now and half next year?

Anonymous wrote:I'd actually borrow the 10k from my 401k in this instance.

But I’m looking for another job, and if I find one I would have to pay back the full amount within 60 days of leaving.

I'd actually borrow the 10k from my 401k in this instance.

Anonymous wrote:How long is the certificate program? And it’s a legitimate program, right? Not like a certificate in political management or something?

Data analytics, 24 weeks. It will help me formalize a lot of the self-taught skills I already have, and give me time to put together a project I can use as an example for other employers.

If “only” 10k and with excellent credit could you put it on a credit card with 0% interest offer for 12-18 months? There are cheaper options than a student loan for this amount if you really think you can pay it off that quickly.

I mean, I think it is insane that your DH has 100k in student loans and makes 60k and won’t do better but that is what it is so if this is what you need, this is what you need.

How long is the certificate program? And it’s a legitimate program, right? Not like a certificate in political management or something?

Use the e-fund and if there is a real emergency you can do one of these other things.

Anonymous wrote:

Anonymous wrote:Student loans for graduate programs are 6-7%. Cut back on retirement temporarily.

I believe the current interest rate is 6.5% for a direct federal student loan for graduate education.

Personally, I’d save up and pay cash. Which means forgoing the 401K Max. OP, you should also consider funding a 529 for yourself. Pay that tuition with some tax free gains. You’ll also get a tax break with the lifelong learning credit.

Ooof. Didn't know so high. And don't you also have to qualify for the direct federal student loan?

Anonymous wrote:Student loans for graduate programs are 6-7%. Cut back on retirement temporarily.

I believe the current interest rate is 6.5% for a direct federal student loan for graduate education.

Personally, I’d save up and pay cash. Which means forgoing the 401K Max. OP, you should also consider funding a 529 for yourself. Pay that tuition with some tax free gains. You’ll also get a tax break with the lifelong learning credit.