Is it better to pay in cash for college or take out student loans?
Question by Think about it: Is it better to pay in cash for college or take out student loans?
Law school will cost 150,000. If someone has that much saved up in cash, should they pay off their mortgage and take out student loans, pay for tuition or save/invest the money and take out student loans?
My mortgage is interest only and with my bad credit and no work history in the past year there’s no way I can ever refinance it for the next 10 years factoring in college time, etc.
Best answer:
Answer by T money
Which has a lower interest rate? The mortgage or student loans? Paying off a mortgage early may save them a lot of money in interest. . Student loans are low interest and can be paid off years down the road.
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Tags: Interest Only Mortgage, pay cash, pay for tuition, Student Loan
Pay in cash. When you take out a student loan, you are basically saying “Yes, I will pay double for school.” That is what the interest from the student loan will do. That is never a good idea.
Most of my old college classmates are STILL paying off their student loans. Depending on the amount, they can take over a decade to pay off!
It is always better to pay in cash when you have cash available to you.
Cash is better, you will have to pay interest on student loans. You wont have to worry about it later, if you pay cash.
If you can pay your mortgage off in 15 years, take the cash and pay for your schooling. If you won’t pay your mortgage off for another 20,25, or 30 years… pay your mortgage and find another way to go to school (grants, scholarships, work your way through).
Student loans are evil. You should avoid them at all costs. You can’t ever get rid of them…bankruptcy, default, nothing makes them go away except payment in full. And for federal loans, being in default means they can take your bank account, tax returns, and any assets to get their money. $ 150,000 is a lot of money, don’t even put yourself in that situation.