| Posted By |
Message |
mikeswife06
Drama Momma
Member since 9/06 9947 total posts
Name:
Anne
|
Student Loan Financial question
Could you open a 0% interest CC and transfer all or part of a student loan balance onto it to pay it off at 0%? 
|
Posted 7/26/10 10:48 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
Andrewz00
Look! I changed it!
Member since 4/10 1789 total posts
Name:
Andrew
|
Re: Student Loan Financial question
YUP!! i know a few ppl that have done that... the only problem is if you dont pay it off BEFORE the 0% rate runs out.... my loans are around 2% ish.... so missing the deadline and then paying 14-22% on a CC would be crazy!
|
| Posted 7/26/10 11:12 AM |
| |
|
Pray4Baby2010
<3 Cutest Giants Fan
Member since 10/09 5796 total posts
Name:
MB
|
Re: Student Loan Financial question
it depends on a lot of factors- how much is left, can you pay it off in the 0% interest term without it going to the regular interest rate
in general, student loans are not bad debt to have- and if you are paying every month, it will help build your credit
|
| Posted 7/26/10 11:45 AM |
| |
|
donegal419
St. Gerard, pray for us.
Member since 7/07 7650 total posts
Name:
K
|
Re: Student Loan Financial question
I did this! It was great! I had no interest on my loans when I did this. I spent about two years paying it off at 0%.
The only thing you have to think about is how much you owe and can you pay that amount off entirely within the time frame of the 0% offer. If not, when the new rate on the card goes into effect, is it lower than your current student loan interest rate?
|
| Posted 7/26/10 11:52 AM |
| |
|
Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
|
Re: Student Loan Financial question
Do you currently get any tax benefit from the student loan interest that you currently pay?
If you don't, it might be a good idea to transfer the balance.
If you do get a benefit, then I wouldn't do it.
Also, keep in mind the interest rate if you don't pay it off before the 0% expires. The credit card interest rate is much higher than your student loan interest rate.
Did you ever think of doing automated payments that saves you on the interest rate? I do that now and between that break, and my timely payments, I've saved about half a % on my loans.
Good luck!
|
| Posted 7/26/10 12:03 PM |
| |
|
Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
|
Re: Student Loan Financial question
I'm not sure it would pay since most CCs now have high balance transfer fees (4-5%) with NO cap. That's $50 per $1000 of loan and no tax write off. you might not save as much as you think AND like others have said, student loan interest is low and cc go high quickly.
|
| Posted 7/26/10 1:06 PM |
| |
|
christinec2010
LIF Adolescent
Member since 10/09 637 total posts
Name:
Christine
|
Re: Student Loan Financial question
As another person said, student loan debt is considered good debt. You also receive a loan statement at the end of the year for taxes paid on the loan, which you can deduct on your taxes.
|
| Posted 7/26/10 1:12 PM |
| |
|
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
|
Re: Student Loan Financial question
I have not seen 0% life of loan deals in a long time so it really depends on how much balance you have left. Must deals are 12-16 months of interest free.
Fee, there is no max fee for transfers these days so keep that in mind when you do this.
The rate once this goes to once it complete should be a deciding factor as well as students loans are lower (depending on what kind of loan) then credit card typical rates.
|
| Posted 7/26/10 1:14 PM |
| |
|
imas98
Love my Furbaby
Member since 10/07 1140 total posts
Name:
|
Re: Student Loan Financial question
My friend did this with his car payment.....he didn't realize his minimum payments would be so high, due to the high balance he was carrying. So make sure they don't base the minimum payment off the amount owed.
|
| Posted 7/26/10 1:21 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Student Loan Financial question
I did this for part of my student loan.
I got an offer for 0% for 12 months no fee. So I paid down my student loan by $3k and paid off the cc in 12 months.
I don't qualify for the tax deduction on my student loan and the xfer was free so it made sense to me.
if there is an xfer fee, figure out how much that will be and how much interest you'll save, and if the tax deduction applies, and then you'll know whats best.
|
| Posted 7/26/10 3:06 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Student Loan Financial question
Posted by christinec2010
As another person said, student loan debt is considered good debt. You also receive a loan statement at the end of the year for taxes paid on the loan, which you can deduct on your taxes.
There really is no "good debt" when you are applying for major life purchases.
All debt goes against your debt to income ratios (including student loans), and when applying for something like a mortgage, this debt gets held against you just like CC does.
|
| Posted 7/26/10 3:35 PM |
| |
|
annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
|
Re: Student Loan Financial question
Posted by ave1024
Posted by christinec2010
As another person said, student loan debt is considered good debt. You also receive a loan statement at the end of the year for taxes paid on the loan, which you can deduct on your taxes.
There really is no "good debt" when you are applying for major life purchases.
All debt goes against your debt to income ratios (including student loans), and when applying for something like a mortgage, this debt gets held against you just like CC does.
Its good debt in the fact that that for some there is a tax advantage.
Move that debt to a credit card and those people can no longer use that tax credit.
|
| Posted 7/26/10 6:18 PM |
| |
|
