I found one thread on this topic, but it wasn't that great.
Given that I have one year of school left, would it make sense to just pay cash up-front, or take out a school loan? I would rather not have the debt, but my cash could be put to better use. I'm anticipating having to pay between 5000 and 10000 (which includes my financial aid). Any thoughts?
Do you get financial aid? Then get it, interest is low, and you have one year grace period. Maybe pay interest so it doesnt accrue. Pay at the end of the grace period from your bonuses/salries to avoid rising interest expense. think about time value of money and difference between cash and debt. It's really up to your personal needs I'd say.
if its a low interest rate and you want to invest the money or put it to good use take the loan...especally because interest payments are tax deductible
Haha yep I've thought about this myself. I mean seriously, come on man, if you're a finance major this is basic cost of equity vs. cost of debt stuff, albeit for personal finance. Basically, if you've got spare cash sitting around, do you think you can make more putting it to use (day trading for me) than it would cost you in interest on the debt? If you can, then take out more loans and use that spare cash.
Of course, but there are other considerations i.e. it's unpleasant to be in debt. I think some people are more comfortable than others with it
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