Inheritance and financing school

[Anonymous]

So I originally posted this in the student loans section and was told it may do better here so I am reposting. Any mods can feel free to delete the old one or move it or whatever needs to be done.

For a little background, I am single, 24 going on 25 in a few weeks, and will be starting medical school this coming Fall at an in state public medical school. I have no idea what I’ll be taking out in loans yet, but I know my cost of living will be covered by family. I will ONLY be taking loans only for school costs. I currently do not have any debt whatsoever. I will only be taking loans for tuition which will be about 41-42k

I recently inherited a ~74k portfolio (a brokerage account) of 13 investments (30k in stocks, 2k in ETFs, 27k in mutual funds) and some of it in cash (about 15k). I could use some guidance on what to do here in order to wipe out as much debt as possible in the end.

I’ve asked advice form a couple of CPA’s and attorneys who do estate planning. The two options ive received are either cash it all out and throw it all at tuition. Or I’ve also been told to hold on to it and see if it can grow into something that will wipe out a more significant portion of the debt later. I want to do as much research as I can and ask for advice from as many people as possible before I make a decision. So any advice is appreciated.

[tcbofade]

Just some general assumptions... if you leave the inheritance with the brokers and they average a 6% return, how much does it cost for your student loans? 

If memory serves, student loan debt CAN be carried at zero percent while still in school...

If I am correct, leave the dollars invested, go to school on "free" borrowed money, then re evaluate your position at graduation time. 

[Anonymous]

Also there are ways to work off ie cancell student loan debt.   Biggest one work as gp in underserved community.  You may want want to reearch that option. 

[Revelate]

I would agree with leaving it invested for now, not only for the deferred period but maybe forward from that.

Here's the thing, there's a decent chance we may get real movement in how tuition and student loans are handled over the next 4-5 years as there's bipartisan support for doing something about the situation.  

As a result, it might outright cost less to repay them than one might expect... I would definitely wait and see what happens before making any significant financial decisions so pushing that off for the 2-3 medical school years and maybe residency is probably worth while.

I was expecting to just pay cash to finish out my undergrad, but looking at the prevailing winds and current interest rates I'm starting to think it'd be obvious to go and take a bunch of loans and worst case I just repay them if things just keep getting worse like they have been for the last two decades, but I think there's a decent chance it might not suck as much in the future.

[Anonymous]

Medical school has very different loan rates vs other types of student loans. There are several opportunities to pay off medical student debt, such as working in a rural area for a certain amount of time. Also, once you are a Dr. there will be so many different loan products available, including low-interest mortgages.
I would wait to see how student loans in general change. As time goes on, you will see more options.
Congratulations on med school!!!

[Kree]

There are many repayment options that will reduce or eliminate student loans. Also many candidates are debating forgiving student loans or a portion of them.

I would highely recommend not paying student loans at this time until you know what your final employment/wage situation looks like in the future.

Additionally it is very likely that a sound investment stategy will average a 7% return, and repaying any loans that are for less than 7% could be considered a loss.