Happy Monday wonderful Mustachians! I got my acceptance letter for grad school on Friday & I'm posting to get a second set of eyes on my rough financial outline for the program.
Current situation: Husband is in MBA program (1/2 done) with $13000 in tuition payments remaining. He earns $94k annually & I earn $38k. Up until today, we were putting away enough to max out both of our 401k's for the year, but I just cut mine back to the match (husband is still maxing out). We've funded our Roths for the last 3 years as well, so there is over $30k there. We are 25 & 24 and just hit $100k in total retirement savings recently. Because we've been paying for his MBA in cash, we have cut back our emergency fund to 2 months expenses (roughly $5k). We also have a fully paid for car worth about $10k. I also still have $17k in student loans from undergrad at 5.5%, but we haven't paid any interest on those ever through a combination of income based repayment before we were married and now in school deferment (university employee so I'm taking undergrad classes free).
Grad School Plan: I will quit my job in late July to pursue the grad program (data analytics) full time. I expect the program to take about 18 months & the average starting salary of their graudates is $80k, so I think the investment is well worth it; total cost will be about $40k. From now until July, we'll be able to save about $3k/month, so that will be enough to pay for the rest of my husband's MBA program. After that, we will have about $1k/month extra, so $18k total for the time I am in the program. I also think after I finish one or two quarters I could probably get a well paid part time internship that would help as well.
So, that will leave about $22k of the program that we will need to pay for in loans. My plan is to use 401k loans from my husband's work to pay for this with the theory that if he leaves the job for any reason, we could take out a student loan at that point to pay off the 401k loan. Depending on exactly how much we have in the 401k v. the timing of the payments, we might need to take out a normal student loan for one or two quarters, but I think the 401k will be our first line of defense.
As an emergency fund while I'm in the program, we will have our 2 months expenses (really 2.5 months if we cut back to the bare minimum), our Roth, and our paid in full car, for which we could take out a loan from PenFed or similar at a low rate as needed.
I'm an advanced certified VITA tax volunteer & have looked into all of the ways of handling the tax side of things for my work & my husband's MBA so I feel comfortable with all of those implications. That aside, does the plan overall seem manageable at a high level? I just want to make sure I'm not missing anything super obvious.