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Financial Planning / Tax Strategies
|Subject: How to Pay for Nursing School||Date: 7/8/2013 3:14 PM|
|Author: griffjj||Number: 118802 of 121482|
Hello, Fools. I'm not sure if this is the best place to post this, but I know there are people smarter than me on this board so I figured I'd start here.
My wife is going to be attending nursing school next year and I'm wondering what would be the best way to pay for it. We are also selling our house and buying a new one in the next month or two. So I can think of three options for paying for school:
1) Get a student loan.
2) Get cash out of the mortgage for the new house and use that.
3) Pay tuition from savings.
My first instinct is to do #3 because I don't like the idea of taking on additional debt when I don't need to. Paying cash would not interfere with any of our other financial goals like maintaining an emergency fund, saving for retirement, etc.
However, with interest rates still near historical lows, I wonder if it would make more sense to use a loan to pay for her education instead. Is one method better than the others from a tax perspective? I'm not sure what things we need to consider in making this decision, so I welcome your advice.
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