This is a question for a friend of mine, “Abby.” Abby got laid off from her job and is getting an approx. $60,000 severance check. Part of this money she will need to live on while looking for another job (however the job market is hot, and she has a great resume, so it shouldn’t take too long - hopefully). Abby is also halfway through a master’s degree program. She has 4 semesters left, which she will have to pay approx. $5,000 per semester out-of-pocket (for a total of $20,000 over the next 12 months).
I should now add that Abby would like to purchase a house in about a year, and it would be really nice to have as much of that chunk of severance money available to put down on a house. So the question is, should Abby pay the $20,000 for school out of the $60,000 severance? Or should she get a student loan?
I think it would be best to get a loan to pay for school so that she can preserve that cash for a down payment on a house. Over the long run, it will be cheapest overall (due to the reduced mortgage payments). What do y’all think??
And my next question is, how does one go about shopping for a loan for post-graduate education loan?