I'm still trying to get my head wrapped around what's coming (financially) and make the best decision; So to answer your question - I don't know if we can afford it. I'll give you more information that might help provide a better picture of the situation and an appropriate path moving forward:Can you afford to add 1300 plus utilities, repairs, maintenance, etc? I rented during medical school 1 year in an apartment and a house the other years. I guess it's a different question if you already own but don't want to put yourself in too much of a hole during school especially with kids. I racked up a lot of debt during residency (rented for 3/6 post med school years and had 3 kids). How does rent look for an apartment/rental home? Obviously financially it's probably going to be better to not take out the student loans but it depends on what your options are you need to focus on your courses.
Thanks for the info. I'll have to make some time to look into that as I haven't heard of it before.Look into cash out refinance loans. I don't really know how they work but they seem like the ideal thing for you to do. You may need to use your student loan to build a little more equity in your home. If I understand them right you will be able to take out a loan equal to 80% of your homes value. The first thing you will have to do is pay off your 1st loan. If your home is valued at 280 this will leave you with 130k cash and a higher mortgage payment.
Yeah, it's a 130k loan you could take out against your home. You could likely make mortgage payments with that and live off the student loans. Residency would be rougher if your still a single supporter.Thanks for the info. I'll have to make some time to look into that as I haven't heard of it before. Not sure having a higher mortgage payment is good idea though considering that 130k would run out by 4th year and then trying to have allotted 30k COL cover the now increased living expenses. Or maybe I'm not understanding what you wrote.
The idea with the cash out refi out would be to reduce loan amount but by the whole amount you bring out. You would keep enough cash to ensure you can keep paying your bills the whole time.Thanks for the info. I'll have to make some time to look into that as I haven't heard of it before. Not sure having a higher mortgage payment is good idea though considering that 130k would run out by 4th year and then trying to have allotted 30k COL cover the now increased living expenses. Or maybe I'm not understanding what you wrote.
Don't forget the loan money isn't taxed so it's like you have a 45k a year salary.Thank you for the informative and thoughtful replies, everyone!
My family and I have a lot to think about. Fortunately we have time before a decision needs to be made. The financial aid award letter should be official in early April next year and it will assist with how to move forward. Until then, we're going to work on a 30k/yr living expenses budget, look into the refi option, and learn more about government assistance programs.
Thanks again for taking the time to help, everyone!