Right now I'm sitting here deciding whether to do a payment plan on DH's tuition. We are given the option of paying 25% upfront and 75% in Feburary 2008. The amount of money is about $10k. So it's $2500 now and $7500 later.
However there is a fee associated with this, $50 to do this payment plan. This is a 1.3% APR to float $7500. I would prefer to do this because we are going to take out another $8500 subsidized Stafford loan. So we only have to pay $5850 for the semester instead of of $10k. And it will give the loan time to process.
Is it worth it? DH wants to completely drain our cash savings and pay for it. I don't think this a good idea. We have a lot of fluctuating income with the ESPP and stuff that I use to balance our budget. I also use the ESPP to pay for the tuition, and during the summer when we pay an extra $10k cash I find it's better to be saving all year.
DH hates the fact we have to pay $50. It drives him insane to pay "interest". It's so frustrating because I worry if we are cash poor and something happen we'll have to cash out investments and then be in dire straits.
I am not sure what we're doing but I think I'm going to win the argument. Because cash poor is never a good situation to be in.
Subscribe to:
Post Comments (Atom)
1 comment:
I agree with you.. having cash reserves makes you feel more secure to handle anything that comes your way.
Husband has to keep trying to tell me to save more money in reserve (he'd ideally like to see $2k-$3k) but I keep shoving it towards debt instead... :D
Post a Comment