IRA earns CD rates. Not married. Full time student - very little income.
2006-08-29 01:04:56 · 4 answers · asked by gkjkekak 1 in Education & Reference ➔ Financial Aid
You can use the IRA for higher education without paying a penalty. However, you will still be taxed at the end of the year as if the IRA were income.
You will have to do what you have to do, I guess.
2006-08-29 01:20:43 · answer #1 · answered by Phronsie 4 · 0⤊ 0⤋
No...do not mortgage your future to pay off the student loan. Chances are, if a federal loan, the rates are reasonable. You will have 6 months before payments begin. You will find a job that will allow you to make monthly payments if you budget properly.
For even more advice, contact the Clark Howard Consumer Action Center or make an appointment for them to contact you. The web site is http://www.clarkhoward.com
2006-08-29 01:12:27 · answer #2 · answered by The Professor 3 · 0⤊ 0⤋
NO. They will take 10% if the IRA ($2,500) and then tax you on the rest.
Get a Part Time job instead.
2006-08-29 01:14:45 · answer #3 · answered by SPLATT 7 · 0⤊ 0⤋
yea pay the loan first it's better to be debt free and have good credit
2006-08-29 01:07:55 · answer #4 · answered by a_j2002 2 · 0⤊ 0⤋