I have no undergraduate loans at all and want to pay off my credit cards instead. I hope to pay off the student loans I use to pay off my credit cards before I graduate since I know I won't be taking out any other student loans for school.
2006-06-26 15:30:43 · 11 answers · asked by jmtmjw 1 in Business & Finance ➔ Credit
How is it illegal? Basically, you are awarded student loans so that you can pay for living costs and what not while you are in college. I am lucky enough to NOT have to use any loans to pay for tuition/housing, etc. This would be the FIRST time I would take out a loan and it would be to pay off my credit cards, which isn't even a large amount and something I can pay off before graduating.
2006-06-26 15:39:17 · update #1
Yep it is a great idea. You can lock in student loans at about 3% interest. you have to pay it all back in the long run, might as well, take care of the high interest rates now, before they get worse. I did this with my student loans, I am still paying on them, but with an all time low interest rate, small monthly payments, and my credit is great .
Student loans are less expensive payments than most will lead you to believe. You can make a plan to pay it in up to a 20 year period. The interest is so low that it is not necessarily a bad idea, especially if you consolidate through a third party. I graduated with a masters a few years ago, I had 20K in student loan debt. I originally made high payments, but now I only pay around 120 a month, more when I have it........
My credit cards weren't that bad, but they were there. My credit was worsening because of debt versus borrowing ability, so I paid them off while I was in school. Think about it... You don't have to pay back until you graduate, and you are sure to get a better job than you have right now. It is the sensible decision. It is your money to use any way you need to, just make sure you can make it through the year, and don't take more than you need to get by. Good luck in school.
If you are paying back before you graduate, if you pick the right loan, there will be no interest at all. That is a no brainer. Pay off your cards.
2006-06-26 15:35:26 · answer #1 · answered by jen 4 · 3⤊ 0⤋
It would depend on the terms of the student loan versus the terms of the credit card debt. Look at the costs of each loan over the repayment period to determine which is the better option.
2006-06-26 15:35:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
sure...then down when the government is demanding 500 a month to pay off student loans, hey, at least there won't be credit card bills!
trust me, my husband just graduated and it's a mess.
robbing from Peter to pay Paul is always a bad idea. in the end, you'll still end up owing someone.
2006-06-26 15:35:03 · answer #3 · answered by cirque de lune 6 · 0⤊ 0⤋
Depends on your spending temperament. If you're a disciplined person, yes... student loans typically have a lower interest rate than credit cards (though not always). However, if you're not a disciplined person, beware. Student loans are not dischargeable in a bankruptcy. You will have that debt until its paid off.
2013-12-26 09:27:43 · answer #4 · answered by rdzgrl00 4 · 0⤊ 0⤋
Absolutely, you should pay off your credit card debt with lower-interest rate student loans.
Unfortunately, student loan interest rates go WAY up on 6/30/06 thanks to Dubya! It is imperative that you consolidate before then.
Myself, I am a grad and need to consolidate my loans before the deadline! So I went on a google hunt (I mean search ;). Eventually, I did find a site that has rated a few student loan consolidators, and says they have checked them out. Here's the web page: http://lendersrated.com/studentloans.htm...
Hope it helps you...
karateross
2006-06-26 20:56:33 · answer #5 · answered by PaymentKey.com 3 · 1⤊ 0⤋
it depends on which has the least interest.... i admit i have used some of my student loan money to pay credit cards..
2006-06-26 15:35:25 · answer #6 · answered by fsanders2 2 · 0⤊ 0⤋
Yes. If you obtain the loan legally and the interest rate is lower than the cc rate - absolutely.
2006-06-26 15:34:34 · answer #7 · answered by Ron C 6 · 1⤊ 0⤋
No it's not cuz how are you gonna pay for skewl if you used your student loans ? Also, your Q is kinda hard to read... Anyone else find it hard to understand ? Or is it just me ?
2006-06-26 15:33:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Charge your student loans on your credit cards, then file chapter 13,,,hmmm or is it 7. None the less, then they will be gone...
Smart thinking.
2006-06-26 15:41:02 · answer #9 · answered by gonzo_50 3 · 0⤊ 2⤋
here's a blog filled with info on student loans, hope it helps:)
http://federal-loan-consolidate.blogspot.com/
2006-06-29 15:38:31 · answer #10 · answered by ksruckman 2 · 0⤊ 0⤋