OK so I want to take out a student loan. I have ~6k on my credit card. I have a pretty fair amount saved up, for a house. I don’t want to take my house money out, because
there’s a time penalty that I would incur. Buying a house would be worth this penalty, paying my credit card is not.
it earns more interest than it would cost me to take out a student loan. esp considering they are deferred until 6 months after you graduate. I could have the student loan paid off before then.
So I want to take out a student loan to pay off my credit card. So can I take out a loan that goes to me, not to school (I’ve already paid school off, in cash. this is my last semester), and can I get one for 5-6k? What route should I take to get it?
I am still a dependent of my parents for tax purposes, and I have no other debt besides my credit card.
Is this a bank loan or a fed loan or a bank loan first of all. A bank loan would be a lot easier to get in your name, fed loan would be next to impossible. I think with a bank loan they would like to see the billing statement from the school, so if you have your original awards letter use that when you go.
don’t take out a student loan for credit cards!
either way, you are still going to be in debt for that amount. If you got good credit, which you should if you are looking to buy a house, and have no student loans, look for an itnerst free balance transfer for a year on your credit cards. A debit is a debit, mine as well not pay intrest. And try to keep rolling it over every year, or pay it off fast. don;t use money you have saved for a house, keep that gaining interest. Pay off the cc debit if you get 0 interst. Also call a bank, they got consildation loans which are less % for interst than CC might be. Or a personal loan might work for you. Alernative loans for school are averaging about 8-10% at the moment. I know, just consildated 60k. Might help knowing what interest rates are on your CC, and what route you want to go.
And best advice…try and get your interst rates rolled over into a 0% for some if you can, make minimum payments on low interest and pay off the highest first
Until he gets here, yes taking out a student loan to pay a credit card is a good idea. You ditch the revolving debt in favor of installment debt, which is better for your credit score. You also pay a lower interest rate, which costs you less money.
You cannot take a Federal loan any old time. You have to fill out the FAFSA once per year and you get awarded loans once per year, at 2 installments. The current interest rate on a Stafford loan is 6.8%. As mentioned, private student loans will be a higher rate.
I have an extra student loan through Citibank. www.studentloan.com. I have had no problems with them, even when late with a few payments they didn’t report it on my credit score. Give them a look.
0% credit cards suck. You have to typically pay $100 dollar fee to do it, which already puts you way behind. Also if you use the card, you pay off the lowest interest debt first. Plus if you miss one payment, you immediately lose your low interest period and in some cases have to pay back-interest. Plus the hard pull on your credit score just for a credit card, still having revolving debt, blah blah blah.
I’m gonna go ahead and say they will notice your $6K in CC debt when you go for a mortgage and it could affect your rates. Pay that shit off, save up some more money, then get the house. Owning a house isn’t cheap, you want to start out in the best shape possible. “creative financing” usually ends up shitty.
I am in this boat too, I have been trying to find a loan, but no one will give me one without a cosigner, and niether of my parents will cosign because they dont want me to have loan debt…which is retarded because i could pay 1/4 of the interest i am at now with my CC at 31%
so if someone has a suggestion of where to go and who to talk to I would GREATLY appreciate it.
I just the other day filled out the online “entrance counseling” forms for a federal loan through the school, and hopefully can get a call from the Financial aid office to talk to someone about my needs and see if i can get them to disperse me a loan
^ yeah, 2 late payments and over limit fees because the interest keeps compunding at a higher rate than my $65 minimum payment is owning the shit out of me and thats why i need a loan to get out of this ASAP, one of my 3 cards gave me a settlement at 6% and $22 a month and closed the account, but the other two dont offer that so im fucked pretty royal right now. losing a job during a school year sucked last year
Private student loans (ie Sallie Mae) will cut you a check straight up. Government student loans (subsidized) go directly to a school. Of course in either case you have to prove that you are enrolled as a full time student.
well my girl does private I do Government. She calculates and amount sends her schedule and in about 2 weeks they cut her $20k+, she has used this to pay rent and expenses, tuition and is in process of buying a new whip with it.
For my Gov loans, they send the money right to the school. I never actually see anything.
First off, yes this is an old thread, but I’m bumping it because it may help someone else too lol
I’m kinda new to the whole school loan thing, I had my last semester paid for through FAFSA/TAP so I really didn’t have to worry about anything. However for this coming school year I am not seeing a dime from either of them.
I already applied for a Stafford loan through their website and did the signed promissory note and all that, but now what? I haven’t actually heard anything about it being accepted or denied and its been well over a month. They did send me a copy of the application, but thats it. I tried poking around their website but there doesn’t seem to be anywhere to check the status?
I did call the school today and left a message since its the weekend, but just curious if anyone else on here can help me in the meantime.
