Hi everyone.
So my GF is facing some dilemma and I want to help her with the different approaches to solve it.
She is starting a Masters Degree this Summer, for the next 3 years.
Her loan was approved for 34K at 6.8% (Or around this number, I will make her check again).
She would have to start paying it off right after she is done. 10 year repayment.
On the other hand, she inherited a tIRA from her dad with ~110K.
We want to minimize the taxes so she loses the less money.
What makes more sense? To move 11K every year to a Roth IRA and then pay the loan in full after 3 years? (or 5 years considering roth IRA lets you withdraw that money without penalty after 5 years)
She currently works and makes around 30K (social worker) and she would still work during the time she is studying.
If I forgot any important details, please ask and I will provide the info as accurate as possible.
