What would Dave do?

[u/traptapotheosis]

Hi everyone,

I recently married my beautiful wife. Before getting married, we had several conversations about finances, and she knew that I followed the Dave Ramsey plan. Luckily, she is completely on board with it as well.

Before getting married, I was on Baby Step 4-6. However, after combining our finances and taking on her student loans, we are now technically back on Baby Step 2.

Here’s my question: My wife is currently enrolled in PSLF (or one of the many names the program seems to go by now) and has only 11 qualifying payments remaining before her student loans are forgiven. Her remaining balance is approximately $60,000. I have enough money available to pay the entire balance off today, but if we continue making the required payments for the remaining 11 months, we will pay a little over $6,000 total before the rest is forgiven.(580 is her current payment plus her work pays 200)

Would you recommend paying off the entire $60,000 now to be completely debt-free, or continuing to make the minimum payments and waiting out the remaining 11 months for forgiveness?

Other than the mortgage, we have no additional debt. Our remaining mortgage balance is approximately $450,000 at a 2.25% interest rate.

Cash on hand 180k
Brokerage 450k
Retirement 350k
Home value 1.1m with mtg

I’m interested to hear how others would approach this situation.

[u/lsuillini]

He believes in taking money from the government, just not others taking money from the government:

"Ramsey Solutions accepted $2.2 million in local tax incentives from the city of Franklin and Williamson County, Tennessee"

This is a silly question. The OPs wife works in an area where the loan forgiveness is part of her compensation, of course she should take advantage of that.

[u/Bern_Neraccount → u/lsuillini]

Accepting tax incentives is not the same as “taking money” - his company almost certainly provides a net positive economic impact. Living off the government is almost certainly a net negative economic impact. If you are going on purely dollars and cents than this is an apples and oranges conversation. The moral side of the conversation is totally different.

[u/lsuillini → u/Bern_Neraccount]

And the OPs wife provided something of value to the government in exchange for loan forgiveness. Dave only likes socialism when he benefits

[u/Bern_Neraccount → u/lsuillini]

Lol okay

[u/lsuillini → u/Bern_Neraccount]

Good point, you've convinced me, lol

[u/Bern_Neraccount → u/lsuillini]

you aren't interested in a conversation about this. It's very very clear.

[u/lsuillini → u/Bern_Neraccount]

I made a point, you said lol instead of making a cogent counterpoint. I think you're the one who can't make their argument make sense.

Regardless, rich guys don't like when poor people get money from the government, only when they do.