Another student loan question

iVillage Member
Registered: 03-27-2003
Another student loan question
3
Thu, 03-02-2006 - 12:50pm

Seems like this has been on everyone's mind lately! We have 2 student loans-mine is for 5,000 and DH is for 13,000. I read in U.S. News and World Report this morning (a Jan. issue I think I double checked that it was this year) that interest rates are likely to go up again in June to around 6.8%. We have moved some of our debt (2nd mortgage) onto a CC with one of the low interest balance transfer offers and I'm wondering if we should do the same with the student loans. But, I know there are tax benefits to claiming the interest off the student loans. Does anyone know how you figure out how much tax benefit? Plus, I know that student loans are generally considered "good" debt while CC's are considered "bad" debt. How much difference do you think that makes?

Taleyna

Avatar for aerandel
iVillage Member
Registered: 03-25-2003
Thu, 03-02-2006 - 1:21pm
Is it even possible to transfer student loan debt to a cc? I would like to do the same but I don't see how it's possible...sallie mae does not allow payment with a cc so unless I got one of those credit card "checks" in the mail it doesn't seem possible. Just curious.

                          

             

iVillage Member
Registered: 03-27-2003
Thu, 03-02-2006 - 2:10pm

The CC checks is what I meant-sorry! My DH gets on the phone before we use one to discuss interest rates, any fees, limits, etc. He's very thorough (I always feel a little sorry for the operators on the other end). We did that with our CC debt to get it on one card 2 years ago and then our second mortgage last year. So, now the CC debt is at 1.99 percent and the second mortgage is at 2.99. In both cases, it's for the life of the balance so I'm wondering if doing that with the student loans would be better.

Taleyna

iVillage Member
Registered: 01-25-2006
Thu, 03-02-2006 - 3:51pm

Actually I never use those checks. I just call them and they issue the funds either directly to the other creditor or they can put it in your checking account and you can write a check to Sallie Mae or the lender (which is what I had to do with my HELOC this time around).

Peg