Use Student Loans to pay off CC debt or Send it back to Issuer?

[Nutdotnet]

As the topic says. I have quite a bit of Student Loan funds. I have two options-

#1- Use it to pay off CC debt. Reasoning- CC interest rates are higher. Consolidation into one SL payment w/ more repayment options.

#2- Send it back to the Student Loan Issuer

 

[ttown]

#1

 

[halik]

CC debt....

why the hell do you have cc debt in the first place? Especially since you're a student :roll:

 

[T2T III]

#3 - Throw one big party with the money and regret it horribly in the morning. :Q

 

[DaWhim]

send it back to the issuer.

cut all your credit cards in pieces and pay off the balance, you don't deserve use one.

 

[Viper GTS]

How much CC debt?

Is it worth giving up the ability to bankrupt the loan for the lower interest rate?

Viper GTS

 

[AgaBoogaBoo]

#1

Out of curiosity, why do you have CC debt?

 

[kyparrish]

#1

 

[Babbles]

I'd do number one. I got a lot of credit card debt in college as well. The first few semesters I thought I could pay for more than I really could, so I initially took out smaller amounts of loans. Also as a science major my books cost a fortune so I just racked up expenses here and there.

 

[jadinolf]

Originally posted by: halik
CC debt....

why the hell do you have cc debt in the first place? Especially since you're a student :roll:

Well said.

 

[toant103]

Originally posted by: Nutdotnet
As the topic says. I have quite a bit of Student Loan funds. I have two options-

#1- Use it to pay off CC debt. Reasoning- CC interest rates are higher. Consolidation into one SL payment w/ more repayment options.

#2- Send it back to the Student Loan Issuer

insn't that agaisnt the law?

 

[Nutdotnet]

Originally posted by: toant103

Originally posted by: Nutdotnet
As the topic says. I have quite a bit of Student Loan funds. I have two options-

#1- Use it to pay off CC debt. Reasoning- CC interest rates are higher. Consolidation into one SL payment w/ more repayment options.

#2- Send it back to the Student Loan Issuer

insn't that agaisnt the law?

It's probably borderline...

Some of y'all are hilarious. "I don't deserve to use a credit card". HAHA...at least some of you actually ASKED why I had CC debt instead of assuming that I was some free-wheeling, care-free, student who didn't know responsibility. But yeah, it's not MUCH debt at all. There are these things called EMERGENCIES and that's what my CCs (my whole two of them) were used for. College students who don't get everything handed to them from mommy & daddy would probably understand.

Gregg- What do you mean by "Is it worth giving up the ability to bankrupt the loan for the lower interest rate?". Do you mean the ability to pay off the loan? Because, a couple thousand dollars on the loan won't make much of a difference.

 

[MercenaryForHire]

Originally posted by: Nutdotnet

Originally posted by: toant103

Originally posted by: Nutdotnet
As the topic says. I have quite a bit of Student Loan funds. I have two options-

#1- Use it to pay off CC debt. Reasoning- CC interest rates are higher. Consolidation into one SL payment w/ more repayment options.

#2- Send it back to the Student Loan Issuer

insn't that agaisnt the law?

It's probably borderline...

Why the hell are y'all asking WHY I have CC debt. It's none of your business, and I garauntee I'm not the only one who has it either. Sorry, not everyone comes from a privledged background. I work my a$$ off @ school & @ work but there are these things call EMERGENCIES, I'm 23 years old, I have a real life with real responsibilites, I'm not some snot-nosed kid that gets everything paid for. I'm not in severe debt, like most responsible students, my Credit Cards are for emergencies. Unfortunately, my emergencies ended up being nearly $3,000 over the past five years. My balances are nowhere near that now, but I would like to get rid of them and just concentrate on the student loan.

Gregg- What do you mean by "Is it worth giving up the ability to bankrupt the loan for the lower interest rate?". Do you mean the ability to pay off the loan? Because, a couple thousand dollars on the loan won't make much of a difference.

<points and laughs> HAHAHA, you said y'all!

- M4H

 

[luv2chill]

Student loans can't be discharged if you ever file bankruptcy, while credit card debt can. You will have to weigh that fact against the possible interest rate benefits.

In all likelihood, assuming you're majoring in something useful (i.e. not communications or psychology), you'll get a high-paying job when you're through with college and shouldn't need to file BK, but never say never!

Good luck

l2c

 

[Martin]

I'm with you on this one. Its perfectly fine to have a bit of CC debt. I use my CC to buy stuff online or in stores, this summer I used it to get some cash aborad as well.

But yes, go with #1. Illegal? I highly doubt it. Why would they care where it goes as long as they get it back? A friend of mine used a part of his to buy a PDA and mp3 player, I am planning to use several hundred of mine to start a microbusiness.

 

[AmigaMan]

Originally posted by: Nutdotnet

Originally posted by: toant103

Originally posted by: Nutdotnet
As the topic says. I have quite a bit of Student Loan funds. I have two options-

#1- Use it to pay off CC debt. Reasoning- CC interest rates are higher. Consolidation into one SL payment w/ more repayment options.

#2- Send it back to the Student Loan Issuer

insn't that agaisnt the law?

It's probably borderline...

Why the hell are y'all asking WHY I have CC debt. It's none of your business, and I garauntee I'm not the only one who has it either. Sorry, not everyone comes from a privledged background. I work my a$$ off @ school &amp; @ work but there are these things call EMERGENCIES, I'm 23 years old, I have a real life with real responsibilites, I'm not some snot-nosed kid that gets everything paid for. I'm not in severe debt, like most responsible students, my Credit Cards are for emergencies. Unfortunately, my emergencies ended up being nearly $3,000 over the past five years. My balances are nowhere near that now, but I would like to get rid of them and just concentrate on the student loan.

Gregg- What do you mean by "Is it worth giving up the ability to bankrupt the loan for the lower interest rate?". Do you mean the ability to pay off the loan? Because, a couple thousand dollars on the loan won't make much of a difference.

Well said! I did the same when I was in college (8 years ago...sigh) and worked my butt off to get through school and have a car. Still ended up with a lot of school loan debt but only a little CC debt.

I'd payoff your CC debt. Also, don't forget that student loan interest is tax deductible at the end of the year. May or may not make much of a difference, but it's something.

 

[Nutdotnet]

Originally posted by: MercenaryForHire

<points and laughs> HAHAHA, you said y'all!

- M4H

HAHA...you're an idiot.

luv2chill- ahh, I wasn't aware of that.

My thinking is this- if I get rid of SMALL amount of CC debt all I would have to worry about is my Student Loans. I would get rid of having to pay $20 minimum balances each month (I pay well more than that). And for the couple grand that I COULD send back to the issuer it would only reduce the payment by a few dollars a month.

Well, I'm glad SOME people understand. It's not like I'm in this financial crisis with debt over my head. I had this option because I didn't need as much loan $ as I thought I needed (I got an internship that pays well for what I do). I was curious as to what the best course of action would be.

EDIT- Something I forgot to mention. I did a "credit score What-If Analysis". Reducing my Student Loan amount by $2k didn't have any affect on my score. But, if I pay off my revolving credt my score increases 50 points. Yeah, pretty substantial. I would go from 680-730.

 

[Rumpltzer]

Originally posted by: Nutdotnet

Originally posted by: MercenaryForHire

<points and laughs> HAHAHA, you said y'all!

- M4H

HAHA...you're an idiot.

I thought it was pretty funny... especially considering the subtle irony that (I think) M4H was trying to capture when there were so many other things to poke fun at.


As for your questions, I'd pay off the CC debt.

BTW, I didn't get squat from my parents to help pay for an out-of-state university. I racked up scholarships and grants to pay for the first year, and then university and US government threw LOTS of money at me when they say I had like a $9000/year income. I've never had CC debts, though...

As you say, your CC debts are none of our business... but wasn't it you who chose to make it our business when you posted it to ATOT??

 

[Nutdotnet]

Originally posted by: Rumpltzer

Originally posted by: Nutdotnet

Originally posted by: MercenaryForHire

<points and laughs> HAHAHA, you said y'all!

- M4H

HAHA...you're an idiot.

I thought it was pretty funny... especially considering the subtle irony that (I think) M4H was trying to capture when there were so many other things to poke fun at.


As for your questions, I'd pay off the CC debt.

BTW, I didn't get squat from my parents to help pay for an out-of-state university. I racked up scholarships and grants to pay for the first year, and then university and US government threw LOTS of money at me when they say I had like a $9000/year income. I've never had CC debts, though...

As you say, your CC debts are none of our business... but wasn't it you who chose to make it our business when you posted it to ATOT??

No, I know what M4H was trying to get @. But he was neffing, he knows it, and its annoying as hell. But I guess that's the best way to get 25k posts...posting statements that have absolutley no bearing on anything.

Oh, of course I made it ATOT's business. But, I would hope if someone was curious about WHY I had CC debt they could ask instead of posting some ASSinine comment that's based on ASSumptions. Sometimes a question should be left as just a question instead of passing judgement on someone's character because a certain question was asked.

How did you get the funding? I understand the scholarships (I receive them too). But as far as govt aid....my parents don't help me, but I'm still considered a dependent so their income is reflected in my FAFSA and thus I get SQUAT. Wait....I did get $400 this year for tuition assistance. SWEET!!!

 

[MercenaryForHire]

Originally posted by: Nutdotnet

Originally posted by: Rumpltzer

Originally posted by: Nutdotnet

Originally posted by: MercenaryForHire

<points and laughs> HAHAHA, you said y'all!

- M4H

HAHA...you're an idiot.

I thought it was pretty funny... especially considering the subtle irony that (I think) M4H was trying to capture when there were so many other things to poke fun at.


As for your questions, I'd pay off the CC debt.

BTW, I didn't get squat from my parents to help pay for an out-of-state university. I racked up scholarships and grants to pay for the first year, and then university and US government threw LOTS of money at me when they say I had like a $9000/year income. I've never had CC debts, though...

As you say, your CC debts are none of our business... but wasn't it you who chose to make it our business when you posted it to ATOT??

No, I know what M4H was trying to get @. But he was neffing, he knows it, and its annoying as hell. But I guess that's the best way to get 25k posts...posting statements that have absolutley no bearing on anything.

Oh, of course I made it ATOT's business. But, I would hope if someone was curious about WHY I had CC debt they could ask instead of posting some ASSinine comment that's based on ASSumptions. Sometimes a question should be left as just a question instead of passing judgement on someone's character because a certain question was asked.

How did you get the funding? I understand the scholarships (I receive them too). But as far as govt aid....my parents don't help me, but I'm still considered a dependent so their income is reflected in my FAFSA and thus I get SQUAT. Wait....I did get $400 this year for tuition assistance. SWEET!!!

I was trying to get a rise out of you - and look, I did.

- M4H

 

[Injury]

Not that it is really any of my business, but I just wonder what "emergencies" require racking up big debt. Like, car repairs or something?

In any case, if the student loans are in your name, I would go for option 2, because it's likely that even though you may pay off your CC, you will still accumulate more as it seems. Then you will be in the same position you are now, except with the money. I also hear that your intrest rates can go up if you have multiple loans/debts going at once, but that may just be heresy.