What would you do?
 

My wife just finished up her master's degree, and now we're figuring out our strategy for retirement planning and getting rid of student loans. We've got a kind of weird decision to make, so I'm curious how the Planet's financial minds would tackle it.

The crux of the issue is that she will most likely be able to get up to $17,500 of her $25,000 in student loans forgiven in five years since she's 1) a special ed teacher and 2) in a low-income school. However, we'd more than likely be able to pay it off well before then if we really wanted to. So, in a nutshell, here's the decision (over-simplified to make the discussion simpler):

Option 1: Pay off $17,500 in loans over the course of about two years. Zero chance of anything happening with the government that would compromise this option. We'd pay about $1,200 in interest during that time, for a total "payout" of $18,700 or so.

Option 2: Let it sit there for five years, then apply for loan forgiveness. We'd have to cover all of the interest above the $17,500 during that time, which is worth somewhere around $7,500 over five years, but that would be the total payout - a "benefit" of around $11,200 to our bottom line. However, 1) you never know what the government will do with these programs with all the spending cuts that are coming and 2) it sucks to carry debt when you don't have to. Technically, it also requires that she keep teaching for five years, but I don't see that being an issue.

I know the way I'm leaning, but am just curious to know what the financial advisors of ChiefsPlanet (heh) have to say.

(And too bad R8ers isn't here. ;))

Paying it off in Option 1 wouldn't be a burden on you financially?

My advice to you:

Send ME the payments and a few pics of your wife's titties.

BTW, i charge for my advice so if you could please add another 100K to my casino cash account, that'd be great, k? Thx. Bye

Don't worry DaFace......I took care of Detoxing's advice cost.

I have the pics, what's your email? How much they worth to ya?

Na, not really. My wife more than doubled her income, and we're not really changing our lifestyle. If we went with Option 2, we'd just be socking away more into retirement for the most part.

Would teaching on the planet count as being a special Ed teacher?

if it's financially possible, i would pay it off. i'm a different kinda cat, though.
put me down on that tittay list also, please.
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As mentioned, this is definitely over simplified. We've got a few other priorities to take care of as well, but this one is the highest interest rate by a long shot, so the logic applies with this simplified version.

What happened to R8ers, anyway?

Not that I care. He became quite the attention whore there for a bit, then disappeared.

You SOB.

How 'bout a trade? I'll send you pics of Lumpy in exchange?

He got mad at me for taking away his thread creation privs, took his ball, and went home. He's to be commended about doing it quietly, though.

I heard he got shot at a 9ers/raiders game.

I would pay it off now while you can. You never know what's going to happen with the government.

Everyone has those pics man, you're gonna have to make the pot sweeter than that.