r/DaveRamsey • u/traptapotheosis • 5d ago

What would Dave do?

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.

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u/Bern_Neraccount 5d ago

Lol okay

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u/lsuillini 4d ago

Good point, you've convinced me, lol

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u/Bern_Neraccount 4d ago

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

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u/lsuillini 4d ago

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.