Pay off student loan with another loan?

[ajtyeh]

I was wondering if i should take out a loan to pay off my student loan of $5,500.

I just graduated december 07, and its been 6 months, and my grace period is over for my goverment subsidized loan (which means they paid for the interest on the loan while i was in school).

the sallie mae loan says its at 5.8 or 6.8% interest i forgot right now ( im at work and can't check. i have balance transfer checks from my credit cards that are offering intro 0.0% apr for the checks and the initial 3% finance charge for it. Should i write my self a check for $5,500 and pay off my loan, and then attempt to pay off that $5,500 by the time the intro apr rate is up by next march 09? i think ill save my self a few bucks?

 

[Vette73]

You can write off the % of a student loan, can you say the same for your other loan?

 

[ElFenix]

i wouldn't. credit card companies are evil and will jack you for just about anything.

 

[jjanders]

It's 6.8%, that is the fixed rate for Stafford loans, which I assume your loan is.

You have to eat that initial 3% charge and the student loan interest will be tax deductible, I'd just keep it as a student loan and pay it off by next March '09 as well.

 

[BurnItDwn]

Originally posted by: Marlin1975
You can write off the % of a student loan, can you say the same for your other loan?

I don't think it's legal to write off the interest on any CC type loan, even if it was a balance transfer of a college loan.

That said, the amount that you save by having the write off is usually significantly less then the amount that's being written off.

OP, If you think you can really pay it all off before you run out of 0% interest, and if you don't plan to use the card for ANYTHING else, then I'd say go for it. Also, if your credit is excellent, you may wish to consider applying for a new CC that has 0% balance transfer and no finance charges for X amount of months. It's possible that you may be able save that 3%.

Do note, that if you do transfer the balance and then at some point down the road, if you charge ANYTHING to the card, you will be paying interest on the purchase amount until after you pay off all of the existing balance.

Otherwise, if you aren't sure if you can pay it all down, consider transferring a portion of it to a no interest CC, then make minimum payments on the CC balance until you have the main loan paid off, then work off the CC to the best of your abilities.

Best of luck!

 

[sdifox]

student load is usually the best deal. Don't do it.

 

[ajtyeh]

Originally posted by: BurnItDwn

Originally posted by: Marlin1975
You can write off the % of a student loan, can you say the same for your other loan?

I don't think it's legal to write off the interest on any CC type loan, even if it was a balance transfer of a college loan.

That said, the amount that you save by having the write off is usually significantly less then the amount that's being written off.

OP, If you think you can really pay it all off before you run out of 0% interest, and if you don't plan to use the card for ANYTHING else, then I'd say go for it. Also, if your credit is excellent, you may wish to consider applying for a new CC that has 0% balance transfer and no finance charges for X amount of months. It's possible that you may be able save that 3%.

Do note, that if you do transfer the balance and then at some point down the road, if you charge ANYTHING to the card, you will be paying interest on the purchase amount until after you pay off all of the existing balance.

Otherwise, if you aren't sure if you can pay it all down, consider transferring a portion of it to a no interest CC, then make minimum payments on the CC balance until you have the main loan paid off, then work off the CC to the best of your abilities.

Best of luck!

i took one of those free credit report offers last fall that ended up costing me 10 bucks a month for liek 5 months because i was too lazy to cancel it. ha. i lose. but i remember my credit score was really high 600 or low 700, pretty much excellent. anyways, does anyone know of any credit cards that offer that "Also, if your credit is excellent, you may wish to consider applying for a new CC that has 0% balance transfer and no finance charges for X amount of months. It's possible that you may be able save that 3%."?

 

[bignateyk]

Just keep in mind that you'll get fucked up the ass if you ever miss a payment (accidental or on purpose).

 

[BurnItDwn]

Originally posted by: ajtyeh

Originally posted by: BurnItDwn

Originally posted by: Marlin1975
You can write off the % of a student loan, can you say the same for your other loan?

I don't think it's legal to write off the interest on any CC type loan, even if it was a balance transfer of a college loan.

That said, the amount that you save by having the write off is usually significantly less then the amount that's being written off.

OP, If you think you can really pay it all off before you run out of 0% interest, and if you don't plan to use the card for ANYTHING else, then I'd say go for it. Also, if your credit is excellent, you may wish to consider applying for a new CC that has 0% balance transfer and no finance charges for X amount of months. It's possible that you may be able save that 3%.

Do note, that if you do transfer the balance and then at some point down the road, if you charge ANYTHING to the card, you will be paying interest on the purchase amount until after you pay off all of the existing balance.

Otherwise, if you aren't sure if you can pay it all down, consider transferring a portion of it to a no interest CC, then make minimum payments on the CC balance until you have the main loan paid off, then work off the CC to the best of your abilities.

Best of luck!

i took one of those free credit report offers last fall that ended up costing me 10 bucks a month for liek 5 months because i was too lazy to cancel it. ha. i lose. but i remember my credit score was really high 600 or low 700, pretty much excellent. anyways, does anyone know of any credit cards that offer that "Also, if your credit is excellent, you may wish to consider applying for a new CC that has 0% balance transfer and no finance charges for X amount of months. It's possible that you may be able save that 3%."?

Chase was the one I went through for 18 months no interest and no balance transfer fees. Now that I think about it, I should have mentioned that in my post above....

 

[Xavier434]

Unless you find a way which results in a smaller interest rate which is fixed then don't do it. Odds are, you will not find a loan which offers a better deal like that without a major catch like tacking on a hefty fee based on the amount of the loan. Trust me. You are not the first person to consider this idea and there is a very good reason why you don't see alternative solutions being commonly practiced.

 

[RaistlinZ]

Why not just pay off your student loans by March '09 instead? It just kills me to see fresh new college grads getting involved in CC debt for no good reason. CC companies find wasy to charge you for anything under the sun. Just say "No!". :thumbsup:

 

[imported_Baloo]

I would not bother. You will not save much, if at all, just the difference beetween 3% of $5500 and the actual interest compounded on the loan. You should do the math here, find out how often the interest is compounded. You may find that 3% of $5500.00 is more than what you'd pay in interest if you made regular payments and paid the existing loan off in the same time frame. Not to mention if you don't pay off the loan, they will jack the rate up on the balance probably more than 20%, and anything you charge on between now and then stays on the balance costing you interest every month until you pay off the cash amount first, then pay the remaining balance for charged items.

 

[So]

Agreed. Stay away from the CC debt and just pay off the student loan. The interest on the loan is small enough that it's worth the insurance in case of hard times.

 

[Kappo]

Just pay off the student loan with all your spare cash. Don't keep it around like it's some heirloom your grandma gave you.

$5500 should be paid off in less than a year unless you dont make squat (in which case this shouldnt be even a question of putting it on a credit card).

 

[ajtyeh]

thanks yall for the advise. i make 40 k a year and i was planning to pay it off asap, thought i could save a few bucks, but ill take heed as to approaching CC debt. Thanks

 

[Mxylplyx]

Originally posted by: ajtyeh
thanks yall for the advise. i make 40 k a year and i was planning to pay it off asap, thought i could save a few bucks, but ill take heed as to approaching CC debt. Thanks

Do yourself a favor that few people manage to do these days. Avoid any and all credit card debt, and if possible, any and all debt period, except for a mortgage. Dont go buy some shiny brand new card you cant afford, or buy new furniture on a CC that you cant afford. I'm almost 28, and just now recovering from the stupidity of my first few years after college where I had to "have it all". You'll be well ahead of the game if you follow this advice.