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What would be the best option for paying for college, using a federal student loan or my 401k?

It’s for my last year of grad school, I’m 29 and it’s a private school so of course it’s not cheap. Thanks for your advice!

2 Answers

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  • di
    Lv 4
    2 years ago
    Favorite Answer

    Loans. The interest on a student loan is tax deductible. Your withdrawals from your 401K are taxable income.

  • 2 years ago

    Don't you dare touch that 401k! It's a whole lot easier to discipline yourself to pay off a loan than to replace what's in your 401k PLUS whatever growth you would gain over the years your take to replace it.

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