I don't want to be perfect, just better...

Tuesday, January 12, 2010

Tough Issue Tuesday

I start graduate school on February 1st.

Yeah Me!

I'm nervous, anxious and excited about it. (All at the same time.)

I am nervous about being able to keep up with my studies while working full time with the kids and a husband.

I'm excited because I love school and because I love learning.

I'm anxious for two reasons.

First, school is an expense. I am taking on an added burden of loans to further my education. Which means more debt to pay off later. (Boo!)

Second, I fare better in a brick and mortar classroom. I like the interaction between teacher and student as well as those between student and student. I also like the opportunity to meet new people in a face to face situation. I won't have those opportunities in an online setting. However, I could see no other way at this point to attend school with my travel for work (which thankfully has tapered off), the kids and the round of activities that are about to ensue and the rest of my life.

What is my Tough Issue Tuesday?

I have spoken before about my first attempt at graduate school. I sometimes call this my small student loan.

Going back to school has given me the chance to apply for in school deferment. I was thinking that, I could apply for in school deferment for my larger loan.

I could then take the $225 a month that I am paying to Sallie Mae and combine that with the monthly Mohela payment $70 and over payment of $70. That would give me a combined total of $365 to pay toward the Mohela loan.

The current balance of $5,252. 38 could be paid off in roughly 15 months if I applied a $365 payment toward the loan.

The downside is that my big loan, Sallie Mae (current balance $27, 471) wouldn't be getting any attention. I plan on at least making the quarterly interest payments while in school.

Mohela (small loan) has the highest interest rate and it is variable. Sallie Mae has a lower fixed interest rate. This degree I am seeking, can be completed in two years. Eighteen months if I tried to bulldoze my way through the program.

Here is when I need your input. Do you think my plan is solid? Should I seek deferment on the large loan and concentrate on paying down the smaller loan?

Tell me your thoughts in the comment section.

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