I was wondering.... If you guys have the money to pay the Dental School, would you pay for it instead of getting a loan? would you use your save account?
Paying Dental School - cash or loan?
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id take out the loans that are subsidized and pay for school and use your money (if you have enough) to pay for the rest.
Loans aren't all that bad (its a lot of loans that is bad). Life is about cash flow right? u can always use ur saving to invest safely and make more money. If u can make more from investment than the loan interest that u have to pay then itd be smarter to invest.
Loans aren't all that bad (its a lot of loans that is bad). Life is about cash flow right? u can always use ur saving to invest safely and make more money. If u can make more from investment than the loan interest that u have to pay then itd be smarter to invest.
Ooohh, cool idea. Daurang, can I borrow $100K from you? I promise I'll pay you back once I get the iPad
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A wise man once said, "Straight cash homie". I would blow it on hookers and booze thought. Can't go wrong
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Man, I wish I had the cash to pay for dental school tuition and living expenses. Could you even imagine?
Like someone said, take out the maximum amount you can is government subsidized loans (the government pays the interest on the loans until 6 months after you graduate). Pay the rest with cash.
Like someone said, take out the maximum amount you can is government subsidized loans (the government pays the interest on the loans until 6 months after you graduate). Pay the rest with cash.
Agreed, subsidized loan for sure if you can qualify for that. Sounds like you might not though since you got mad cash savings!
Manage that cash though, leaving it in savings is not going to earn you money on it (my savings account pays 0.1%, yuck!), savings accounts don't pay 5% like the good old days. At a minimum rotate the cash in CD's to earn at least 2% on it. Personally I'd consider opening a regular investment account (ameritrade,e-trade, etc...) and put the money in a conservative investment that earns a bit more than CD's will, (short-term domestic bond funds, etc...)
I'd also consider opening a roth IRA account with some of that money if you have a bit extra. Just keep in mind you can't withdraw money from Roth IRA penalty free for education like you can with a regular IRA. So that's only if you have extra over what you need for school.
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If this person has that much cash laying around, he/she probably exceeds the annual income limit to open a roth IRA account. If you make too much, then you can't deduct traditional IRA contributions either (so there goes any savings of opening a traditional IRA account and converting it to a Roth IRA at this present time).
They won't be making high income during dental school. Unless it's all investment income in which case this advice isn't needed. Only the past years income matters each year you fill out the fafsa. But yeah you still need to be earning income to contribute to either type of IRA, so probably a moot point for a dental student (unless you're married). There is no maximum income limit on a traditional IRA contribution. From Vanguard traditional IRA "If you're not covered by an employer-sponsored retirement plan, contributions are fully deductible regardless of income."
Anyways, point is if you got 6+ figures of savings, do more with it than letting it sit in checking/savings.
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True. I forgot that these are given on need based criteria. Good point.
i don't know about where yall are from, but subsizidized loans max out at $8500 per year here in Texas, even if you're dirt ass broke. It's nice to have SOMETHING subsidized, but it doesn't make a huge difference when it's all said and done.
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Cash for tuition can be a really great deal. At my school they would give you a 5% discount but the really good part was you could prepay all the years in advance and get 5% off the current tuition levels. Considering tuition was going up 7-12% per year that gets to be a HUGE discount by year 4. Maybe 30-40% off.
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So do they take credit card so you can get a whole bunch of free plane tickets and free hotel nites? Current promo is: charge $6000 in four months, get two free tickets on American Airlines; charge $15,000 in 6 months, get five nights free at any Westin hotel. Imagine all the free vacations you'll be getting.
Now talk about credit card rewards! And they say credit sucks..
