<p>My husband and I are trying to figure out what makes the most sense for financing his MBA. </p>
<p>We both work. He started grad school full time in Fall 2010 and dropped down to working part time. His income + my income was enough to cover all our living expenses as well as max our ROTH-IRA plans. I am contributing up to the match limit through my work's 401(k) as well. </p>
<p>We borrowed $20k for tuition (private school, he got the other $20k of tuition through a merit scholarship) last year as well as $10k for living expenses. </p>
<p>We have not touched the $10k (we put it into a S&P 500 fund that is up 8% so far) and received $14k as a tax rebate. We have an additional $15k in savings in a mutual fund and $10k in miscelleneous stocks/savings accounts/whatever. </p>
<p>We are now doing our financial aid for 2011-2012. We plan to borrow the second $20k (bringing the total borrowed to $50k) and are trying to figure out if we need to borrow any additional $ for living expenses. Here's the rub: my husband is going to quit his job entirely, leaving only my income. We will be running a deficit of $1300 a month from Sept 2011-May 2012 (assuming no lifestyle changes. We own our house, so we can't change the mortgage...we could scrimp and get the deficit down to $800 if we had to). </p>
<p>So...thoughts? Do we just run on our savings/loan from last year? And hope nothing happens that would make it run out? I should add that he's got a full time internship over the summer that will gross us $20k between June and August 2011. </p>
<p>We are in our mid/late 20s, no kids, own our cars etc. I expect a large salary raise in 2011, though we are not planning on that when running the numbers.</p>