So, I'm 31F, about 1/3 of the way through my master's program. Each class is about $4500 a pop, and my savings fund is about empty. I'm trying to strategize the best way to move forward - I came from, to put it lightly, a financially illiterate background, and have been attempting to teach myself responsible financial choices.

I have $13k in a personal ROTH IRA, ~20k in my TSP (my work 401k), ~20k in a robo-investtor with Charles Schwab, and 500 dollars in cash. I also have ~$1500 in cc debt, but I think I should be to tackle that with my next paycheck. Which means all of next months earnings are gone with that cc and rent.

I am debating how to pay for my summer course. I see this master's program as my ticket to a better paying future, but my progress is glacially slow due to the high cost.

My current plan of action is to string together my remaining cash, whatever I get back from my tax return (~750), and try and put 500 each month from here on out to wear own the balance.

Should I take out loans? I'm considering dipping into my robo-advisor, but don't understand the capital gains tax and how hard I would be hit - and I did call Schwab, but they explained if I took out the cash portion, it'd get re-allocated due to the algorithm.

If anyone has gone through a expensive master's and has advice, I'm all ears. Or if there is a more appropriate subreddit, I would welcome the direction.

Thank you!

Comments

Scr0bD0b t1_jeeq1j6 wrote on March 31, 2023 at 2:03 PM

#2,530,021

Had a job that paid for my masters. They might also cover some form of student loan help too.

presque-veux OP t1_jeeqleo wrote on March 31, 2023 at 2:07 PM

#2,530,185

Replying to Scr0bD0b (#2,530,021)

My work covered one class. I have submitted requests, but I was told that they have used all the 'training and prof development funds for the year.' I am job hunting, but I doubt I'd be able to land a higher paying gig that will also cover tuition in just a few months.

daaamber t1_jeequgk wrote on March 31, 2023 at 2:09 PM

#2,530,263

Whats the program you are taking?

Whats the interest on getting student loans to pay for it?(have you looked).

Whats your income potential when you graduate?

All these help to shape what to do.

Scr0bD0b t1_jeeqx47 wrote on March 31, 2023 at 2:09 PM

#2,530,283

Replying to presque-veux (#2,530,185)

Probably not as some have policies for how long you need to be there, like a year, before qualifying.

[deleted] t1_jeergy9 wrote on March 31, 2023 at 2:13 PM

#2,530,460

[removed]

presque-veux OP t1_jees1qh wrote on March 31, 2023 at 2:17 PM

#2,530,653

Replying to daaamber (#2,530,263)

I'm taking this program: MS in Energy Policy and Climate Degree Details and Courses. The potential to make a lot to make a lot of money is there - I hang out with some girls who now work the gamut of climate policy, and all make 6 figures. I make about 65k, but my take home is about half that. And my rent is about 1500 / month (I live in DC.) So its been a challenge.

I haven't filled out a FAFSA, but I know that graduate student loans have higher interest rates than undergrad, (like 8% verses 4-6 subsidized) and I just finished off paying my undergrad ones last year. I also know that grad student loans are harder to discharge, even with all the talk of student loan cancellation with the Biden admin.

What would you advise?

presque-veux OP t1_jeesp6h wrote on March 31, 2023 at 2:22 PM

#2,530,889

Replying to [deleted] (#2,530,460)

I do work for the federal government, yes. I'm trying to leave, though. It's a long and boring story, but the short version is the pay is poor, the attrition rate is high, and I don't feel like I'm making a difference. I looked at the loan -> PSLF plan, but I don't want to stay another 10 years, and its not guaranteed anyway. I've watched a lot of my friends and colleagues struggle with unclear guidance and changing rules. I'm trying to get out to make more money, do more substantial work, and gov isn't the place for that.

[deleted] t1_jeet8ku wrote on March 31, 2023 at 2:25 PM

#2,531,092

Replying to presque-veux (#2,530,889)

[removed]

daaamber t1_jeevtuc wrote on March 31, 2023 at 2:43 PM

#2,532,035

Replying to presque-veux (#2,530,653)

I have grad school loans - I think I took out $30k for my whole masters program after most of my undergrad was paid too. I also worked and went to school. I now have about 10k left. (I’d qualify for Biden forgiveness if it passes the courts, if not I have the money set aside to pay it off.) I originally was on a public service forgiveness plan (8 years of payments) before I hopped to a private employer - but my salary doubled so it was worth it. I don’t regret the loan. I wish my 401k/Roth was higher now though - so dont cash that out.

For grad school loans, the interest is higher. But if they are public loans, you get the same forbearance, interest pause, and forgiveness plans as undergrad. They may be an option.

You’d probably want to cash out your stock before going that route though, unless you are making >8% interest on that - which no one is right now.

presque-veux OP t1_jeewg6f wrote on March 31, 2023 at 2:47 PM

#2,532,255

Replying to daaamber (#2,532,035)

That was what I figured as well, but hearing someone who has gone through a similar process as me reassures me. I didn't even know what an equity was 5 years ago - I've come a very long way. But I know I have a lot further to go.

I think I will cash out my robo advisor, even though its scary. It's my last safety net, and I've been pretty poor before. I think its worth the risk, though.

Thank you for your tangible advice, I very much appreciate it.