I am able to save about $1000/month after all bills. I can either save this money for a down payment on a house, or pay for my (rather expensive) grad school program in cash and incur no additional school debt. I'm trying to figure out which option will leave me most ahead after 4 years of school.
I have been saving the money in an ING Direct "High Yield" savings account, earning a whopping .75% APR. I take the savings out about every 4 months to pay for the next semester of school. If I were to leave the money in this account, and save for a down payment, I'd have to use unsubsidized Stafford loans to pay for school, which are (I think), 6.8% interest right now.