Money What would you do?

**DaFace** · 04:01 PM

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.

)

**The Franchise** · 08-22-2011, 03:55 PM

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

**DaFace** · 08-22-2011, 03:58 PM

Quote:

Originally Posted by Pestilence

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

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.

**The Franchise** · 08-22-2011, 04:02 PM

Quote:

Originally Posted by DaFace

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.

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

ModSocks · 08-22-2011, 03:57 PM

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

**Gonzo** · 08-22-2011, 03:58 PM

Quote:

Originally Posted by Detoxing

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

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

seclark · 08-22-2011, 04:00 PM

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.
sec

ModSocks · 08-22-2011, 04:00 PM

Quote:

Originally Posted by Gonzo

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

You SOB.

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

**Gonzo** · 08-22-2011, 04:02 PM

Quote:

Originally Posted by Detoxing

You SOB.

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

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

ModSocks · 08-22-2011, 04:03 PM

Quote:

Originally Posted by Gonzo

you're gonna have to make the POT sweeter than that.

Ghost Kush?

**The Franchise** · 08-22-2011, 03:58 PM

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

**CrazyPhuD** · 08-22-2011, 03:59 PM

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

**DaFace** · 08-22-2011, 04:00 PM

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.

**BigMeatballDave** · 08-22-2011, 04:00 PM

What happened to R8ers, anyway?

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

**DaFace** · 08-22-2011, 04:01 PM

Quote:

Originally Posted by Dave

What happened to R8ers, anyway?

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

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.

View Poll Results: What would you do?
Option 1: Pay it off and be done with it.	34	64.15%
Option 2: The benefit is worth the hassle. Pay the minimums and let Uncle Sam pay the rest in five years.	16	30.19%
Ask Gaz	3	5.66%
Voters: 53. You may not vote on this poll

08-22-2011, 03:52 PM	Topic Starter
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $1786899	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. ) Last edited by DaFace; 08-22-2011 at 04:01 PM..
Posts: 51,944

08-22-2011, 03:55 PM	#2
The Franchise Most Valuable Villain Join Date: Dec 2006 Casino cash: $2865047	Paying it off in Option 1 wouldn't be a burden on you financially?
Posts: 92,293

08-22-2011, 03:57 PM	#5
ModSocks Needs more middle fingers Join Date: Mar 2005 Location: San Diego Casino cash: $4084563	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 __________________ Life is like a dick. Sometimes it gets hard for no reason, but it can't stay hard forever.
Posts: 64,526

08-22-2011, 04:00 PM	#7
seclark MVP Join Date: Aug 2000 Location: nemo Casino cash: $1449900	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. sec __________________ "Mr. seclark. Wrong for gravy, wrong for jelly, wrong for biscuits." -rj "If every Planeteer who was disliked by another Planeteer stopped being a Planeteer we wouldn't have any Planeteers." -rj
Posts: 13,402

08-22-2011, 03:58 PM	#11
The Franchise Most Valuable Villain Join Date: Dec 2006 Casino cash: $2865047	Don't worry DaFace......I took care of Detoxing's advice cost.
Posts: 92,293

08-22-2011, 03:59 PM	#12
CrazyPhuD Meow Join Date: Jun 2005 Casino cash: $10005050	Would teaching on the planet count as being a special Ed teacher? __________________ "Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t*rd by the clean end"
Posts: 8,523

08-22-2011, 04:00 PM	#14
BigMeatballDave GBM 8-12-15 Join Date: Aug 2000 Location: Dayton, Oh. Casino cash: $10052154	What happened to R8ers, anyway? Not that I care. He became quite the attention whore there for a bit, then disappeared.
Posts: 59,997