Paying tuition with cash vs student loan

[ggy]

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What are the economics?

Im thinking paying cash:

Saves on the 7% interest and possible loan origination fee

Student loan:

Can invest the cash?
Take advantage of government program or the military somehow and have some of the loan forgiven

Any thoughts?

 

[smallmediumbig]

If you're able to pay cash for a 500k school, you'll be just fine no matter what you do.

 

[OrphanageCaretaker]

Send some cash over this way.

 

[DentFuture111]

It''s not really easy to earn 7% of profit every year.
Even if you can make it, you have to pay tax on your profit and it becomes less than 7%.
Unless you have a fantastic business model that can earn you more than 10% of profit every year, if I were you I would pay off tuition with money I have.

 

[EasTexan]

Someone with $500k cash available to fund their education doesn't ask this question on a predental forum, they ask a CPA.

 

[Michael_Scott]

ok....so this baffles me. If you have 500k cash why the heck would you go to d-school ?
You can invest that and live nicely for the rest of your life and see money rolling in every year
This seems very odd and borderline trolling.

 

[DetectiveAlonzo]

ok....so this baffles me. If you have 500k cash why the heck would you go to d-school ?
You can invest that and live nicely for the rest of your life and see money rolling in every year
This seems very odd and borderline trolling.

because you enter a job market where you can comfortably make 6-figs and there is little to no inherent risk as there is involved in investing...?

 

[DrSdreen]

ok....so this baffles me. If you have 500k cash why the heck would you go to d-school ?
You can invest that and live nicely for the rest of your life and see money rolling in every year
This seems very odd and borderline trolling.

I would sell my house to get me through dental school if I had to. To me, being a dentist and an ability to make money are more important than the actual money.

 

[ggy]

ok....so this baffles me. If you have 500k cash why the heck would you go to d-school ?
You can invest that and live nicely for the rest of your life and see money rolling in every year
This seems very odd and borderline trolling.

I really like dentistry. The rest of my money will be in real estate.

 

[Incis0r]

I really like dentistry. The rest of my money will be in real estate.

Good for you for pursuing your passions & not becoming complacent. Keep it up!
P.S.- I'd recommend NOT letting your classmates know about your financial situation.

 

[ggy]

Someone with $500k cash available to fund their education doesn't ask this question on a predental forum, they ask a CPA.

My CPA doesn't know much about dental loans and dental-related government programs. I figure I'd ask here first since predents/dents usually know alot about student loans.

 

[8_man]

I heard USC offers you a tuition total that is equal to 4x 1st year expenses if you pay in cash up front.

 

[DrSdreen]

My CPA doesn't know much about dental loans and dental-related government programs. I figure I'd ask here first since predents/dents usually know alot about student loans.

Pls let us know what your decision is. Someone out there probably have the same dilemma. LOL, it sounds funny when I said "dilemma" in this scenario.

 

[8_man]

Pls let us know what your decision is. Someone out there probably have the same dilemma. LOL, it sounds funny when I said "dilemma" in this scenario.

I tried burning it... burying it...

 

[super frank]

 

[1070752]

Troll, or you're really stupid.

Why would you take out a $500k 7% loan if you have $500k cash? You could pay your tuition year by year in cash, and invest the rest. Why would you pay the whole thing up front?

Jesus, at least you could have tried harder.

 

[ggy]

Troll, or you're really stupid.

Why would you take out a $500k 7% loan if you have $500k cash? You could pay your tuition year by year in cash, and invest the rest. Why would you pay the whole thing up front?

Jesus, at least you could have tried harder.

1. Didn't get a loan for undergrad so don't know how it works exactly. Does all of 500k student loan accrue interest on day one or only the part that is being used accrue interest?

2. If it's just cash vs student loan, then it's probably favored towards cash. But there are other factors that could add points to the student loan option (loan forgiveness, loan repayment programs, Trump).