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Archive for November, 2011

Savings Plans Change Again

November 30th, 2011 at 03:18 pm

So our savings plans are changing yet again. Over Thanksgiving, we found out my in-laws can't help with DH's student loans when they come due in January thanks to cash flow problems. This set off a flurry of activity which resulted in us finding out 1) that DH qualifies for the APLE loan forgiveness again this year and 2) DH can easily forbear his undergrad loans until August when his grad school loans are due. So now we are in no hurry to pay off his student loans. So here is the new plan:

- December 2011 - Finish car fund
- Jan - Aug 2012 - Use car fund to hold all additional savings. At some point, buy a car. Have our baby. I start applying to jobs. Financial flexibility will be key.
- August 2012 - Begin paying minimums on DH's grad school loans. In-laws pay their portion.
- Sept 2012 - June 2013 - I get a job then finish my PhD. Allocate any unused savings to either my $11k high interest student loans or a down payment on a house.
- After June 2013 - Pay off my high interest student loans. Raise retirement contributions to $10k/year. Pay minimums on my low interest student loans. All extra money goes toward expanding our down payment.

Our timeline will shift based on 1) when I get a job, 2) when I finish my PhD and then when my loans start, 3) whether we have to move for me to get a job, 4) everything being fine with our little one, 5) my need for a car, and 6) DH's job prospects wherever my job is. So I'm expecting that while we are hoarding money over the next 8 months, our plans will change a few times.

Student Loan Surprise & Life Insurance

November 12th, 2011 at 08:40 am

So I had a pleasant surprise yesterday when I finally got DH to show me his student loan account. The loans I was so worried about paying off are not due in January, they are due in August! This means I don't have to worry about choosing between paying off the loans immediately or paying cash for a car. By August, we should have both the APLE payment and the district overpayment resolved. We will also have DH's bonus, his summer school paychecks, and our little bundle of joy in hand. August is exactly when I will be ready to pay off his student loans.

In other news, we are getting our life insurance exams today. We switched to a new agent and the process is progressing much, much quicker than with the previous agent. I'm a little bit nervous, but I'm not really sure why. I guess because unlike all my OB exams, this one is like a test rather than for my health.

Student Loan Payoff Idea

November 2nd, 2011 at 01:23 pm

So I think I know what I want to do about paying off DH's student loans (vs buying a car with cash). I realized that much of the money is tied up in CD's which mature in February and March. So my current plan is to payoff one of DH's student loans in January to the tune of $8500. After this I have to get a couple questions answered.

1) Will APLE pay his undergraduate loans or only his graduate loans? If they will pay the undergrad loans then we can pay off without worry.
2) When will APLE send the check in?
3) When will our situation with the district overpayment be resolved?
4) How much will be owe the district?

I have about $6K set aside to deal with the district overpayment that I would love to have free. If I can resolve these two bureaucratic nightmares then I will free up $5K-8K which I can later use to buy a car. Plus if DH can get summer school then we can use that extra income to buy a car.

I realized one main reason to pay off the student loans is to keep from having a monthly payment right now when our budget is already tight. The debt payment would come out of our Savings budget anyway.