The loans are consolidated but one of the three has a high interest rate. It is 7.140% $5,007.96and the others are at %2.85 one is $2,517.49 and the other is $9,413.67. What kind of attack is best to pay off these loans and not get stuck paying to much in interest?
2007-03-06 02:49:05 · 2 answers · asked by Evan W 2 in Education & Reference ➔ Financial Aid
If you can't refinance them all at the lower rate, pay off the one with the highest interest rate first. Pay extra on the high-interest loan while making the minimum-required payments on the other two. If you live in the U.S., own a home, and itemize your federal taxes, you can borrow against your home to pay off the high-interest loan and then the interest you pay on the loan against your home is tax-deductible. It wouldn't make sense to do this unless you can get a lower interest rate. The chance of getting a rate lower than 2.85% is not likely, so you are probably better off not refinancing the two lower interest rate loans.
2007-03-06 03:13:38 · answer #1 · answered by Lillian L 5 · 0⤊ 0⤋
I beg to differ I believe you should pay off the low interest loans first and get them out of the way. Yes you will be paying more interest from the larger but you will then be able to focus on just that one.
2007-03-06 06:34:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋