Pay Off Student Loans Now Or Wait?

usually is with us in Tennessee hi Julie

welcome to the Dave Ramsey show hi Dave

okay so I have a couple questions I took

your advice and I went to East Tennessee

State University instead of Vanderbilt

so I third of the cost for my nurse

practitioner degree and I am currently

in twenty-three thousand dollars in debt

from this current semester for my nurse

practitioner and my undergrad so I have

forty thousand dollars saved up I don't

know if I should just write that check

now for that twenty three thousand

dollars and only have seventeen thousand

dollars left in my savings account or

what you would suggest I think it's kind

of scary to write that check when I do I

have forty thousand okay are you out of

school I'm currently getting my nurse

practitioner so I have a year left and I

work full time as a nurse here all right

how are you paying for that my nurse

practitioner I've been just trying to I

took out a loan for this semester and

that is included in the $23,000 okay you

had $40,000 in the bank and you took out

a loan

yes I get really scared to pay a little

bit I just say feet up and I just you

should've gone to school if you weren't

willing to pay for it okay yeah that's


well I think I write just a big check at

the end but okay I'm asking okay if how

are you going to pay to finish school

either take out loans or work which I

have been doing and pay as I go okay so

how much do you make working well

Nashville nursing prices are a little

slim so it's like 40,000 and then I have

the option I could also move my leases

off and move to a different state where

I make twice as much - so I'm sorry the

UM where are you studying nurse

practitioner East Tennessee State so

it's a distance learning thing yeah it's

online so that's why

to work as well as go online school and

you can finish your nurse practitioner

online huh okay and what will it cost to

finish the total for each times you say

it is like 35,000 does that tell you

that what it takes you to finish yeah

mm-hmm like total with all the whole

degree is about 35,000 east half of it

no I'm I have I'm in my first semester

and I have four more semesters to go

okay so you need $30,000 to finish yeah

I need about thirty thousand that I take

out in loans or pay as I go Jeana you

called Dave Ramsey don't say take out

loans anymore I'm going to go in the

hives I don't have chills okay we're not

gonna we're not gonna take any more

loans you're either not gonna finish or

you're not gonna take out loans I don't

care which we're not going to take out

loans now we're gonna pay cash for it

now how are we going to pay for it if we

use this forty thousand to finish then

you're gonna clean up the 23 later after

you finish no I I think we've got this

some of this forty thousand dollars

earmarked for you to finish school and

you'll use some of your income to do

that but you're living pretty tight if

you're able to finish the over what

period of time is left how much time how

much longer will it take you to finish I

have a year left one year you need

basically $25,000 right yep and you're

gonna pull that out you're gonna pull

that out of 40 no you're not that's not

gonna work

so I don't know right now $40,000 a

forty thousand our income you don't have

enough income to eat and pay for this

without using this savings even if I

work as I go and make around three

thousand a month $40,000 in one year and

you need $25,000 during the same year

you if you make 40 and you spend 25 on

your degree out of your

come that only leaves 15 - taxes you

don't have enough to exist yeah and I

pay 750 for rent I know it's very tight

which is $10,000 a year okay yeah okay

so yeah you know when we start adding up

your budget you probably need twenty

five thirty thousand dollars a year to

live and so you may have five or ten

thousand dollars out of your income to

throw at this but you need twenty five

you're gonna use some of your savings to

finish school kiddo uh-huh no more loans


stop it do I so I don't write attract

that not at all do not write a check for

the existing loans let them sit there

until you graduate you should you have

40 thousand dollars in savings did I

understand you're right yeah okay I

would use some of that money to finish

school - for the rest of school make no

more loans then when you graduate you

should have fifteen thousand dollars

left in your account a twenty three

thousand dollar loan and a better job

making as a nurse practitioner more than

forty yeah exactly and so we can use

that fifteen thousand towards the twenty

three thousand and we can clean up the

debt and begin to save again okay okay

that sounds good after graduating no

more borrowing raise your right hand say

no more borrowing no more borrowing I


I won't Thank You Julie appreciate you