Financing or not?

Hello again. I am considering a career change. I have a family, mortgage, bills etc.

When I leave my current job I will be given enough money to cover schooling and a little extra to live off.

Should I use this money to pay for school or should I get a loan and use the money to solely live off.

I’d love to just pay for school but I’m worried about how long it will take to start earning again.

Thank you


Financial decisions like these are yours to make. None of know your situation, comfort zone etc.

What I can say is your want to be in a position where you’re not worried about money during training. You focus needs to be solely on training. However is best accomplish this is the way to go.


What Adam said.
I split the cost 50/50 cash and a loan.
See what options you have and what works best for you. It’s a lot of money and something you should consider talking to a professional about.

Chris F

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In your case, what you do is up to you. If you feel that you have the financial to not have to take a loan out, that’s a decision you’ll have to make.

If I was in your position where I had the funds, I would do as Chris mentioned: splitting 50/50, cash/loan. Why use your own money if you can get approved for a good rate and have additional funds in the event you have an emergency need or something personal? When I attended ATP I made sure to have a small amount of money for emergency use.


Thank you all for your response.

I saving up as much as possible this next year for living expenses and loan for the schooling.


I would certainly keep some reserve in the bank, you just never know what might happen in life. Might be good to speak with your financial advisor if you have one


Hi Byron, like you I’m switching careers. Family, bills, etc… I’ll just share one of the thing we’re considering as an option: We have some extra cash from the sale of our house late last year, so we have a bit of freedom that I don’t know if you can do the same. We’re looking at putting money into a CD and taking the student loan. Essentially, the interest earned on a CD would offset some of the loan interest. It would still cost more in interest from the loan than we would earn on the CD, but would allow us to keep the cash in case we end up needing it for something. Plenty to consider if you were to do this, like the fact that the cash is locked up for the term of the CD, or how long it would take to pay off the loan, etc. Lots of options out there in terms of length of CD, interest rates offered, and we even found one last year that allows a one time withdrawal without penalty (haven’t seen it lately, but they might exist or pop up at any point). Anyway, just thought I’d share in case it’s helpful.

@nzuspan Thanks Nathan. My wife and I were discussing the same thing ironically. I will get a large amount from retirement funds that I’d like to put into something so I don’t pay a huge penalty. It would be great to be able to withdraw at a small rate or no penalty. I will have to speak with someone who knows finance much better than I do