RBP
03-22-2015, 10:00 PM
So, I want to explain something.
If you have a relatively lower income, this is easy.
Enroll in grad school and enroll in the graduate student loan program run by the US government.
Take once class per quarter. Take the full loan amount.
The class will cost about $2500, the max loan is about $6500. Enjoy your $4000 every 3 months.
File your taxes, and claim the Lifetime Learning Credit. Say hello to another $2000.
That's $18,000 in your pocket with zero tax implications.
Repeat until you rack up the max graduate loan of $130,000. It will take you 20 quarters (5 years). Living large. Set some aside and invest it.
But now it's time to repay the government.
Keep your $25,000 a year job and apply for the income limited loan repayment program. It limits your loan repayments to 10% of your gross income.
So you have to start paying back $2500 a year. But wait, that program also forgives the balance after 20 years.
So you pay your $208 a month, hopefully primarily from the portion of the $90k cash they gave you that you invested.
At the end of 20 years, you've paid $50k of the $90k cash they put in your pocket (not the tuition - just the cash). The remaining $80k goes away.
Enjoy. :)
If you have a relatively lower income, this is easy.
Enroll in grad school and enroll in the graduate student loan program run by the US government.
Take once class per quarter. Take the full loan amount.
The class will cost about $2500, the max loan is about $6500. Enjoy your $4000 every 3 months.
File your taxes, and claim the Lifetime Learning Credit. Say hello to another $2000.
That's $18,000 in your pocket with zero tax implications.
Repeat until you rack up the max graduate loan of $130,000. It will take you 20 quarters (5 years). Living large. Set some aside and invest it.
But now it's time to repay the government.
Keep your $25,000 a year job and apply for the income limited loan repayment program. It limits your loan repayments to 10% of your gross income.
So you have to start paying back $2500 a year. But wait, that program also forgives the balance after 20 years.
So you pay your $208 a month, hopefully primarily from the portion of the $90k cash they gave you that you invested.
At the end of 20 years, you've paid $50k of the $90k cash they put in your pocket (not the tuition - just the cash). The remaining $80k goes away.
Enjoy. :)