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Old 04-16-2008, 05:20 PM   #1
tpowell23
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Join Date: Apr 2008
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Question Paying student loan w/ credit offer
My private graduate student loan for approximately $7000 just came into repayment w/ an interest rate of 9.14%. My credit card company, which I'm in good standing with, offered a promotion where I can transfer balances with an introductory rate of 6.99% for a year, and then 4.99% thereafter. Would it be smart to transfer my loan balance over to my credit card account for the lower interest rate on top of a current card balance of ~$4000 w/ an interest rate of 8.99%?
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Old 04-17-2008, 11:48 AM   #2
clydewolf
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Topwell23,

That depends...

You would loose the opportunity to deduct from your gross income, the interest you pay on the student loan. The loan would now be a consumer loan.

It would be smart to see if you could find a lower rate for yor education loan somewhere and do the transfer thing.
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Old 04-17-2008, 05:29 PM   #3
tpowell23
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Is there anyway to calculate and compare how much I would be saving if I transfered my loan for the lower rate versus the amount of interest I can deduct from my gorss income if I just pay the loan at the higher rate as an educational loan?

Also, how else can I try to pay off the loan at a lower rate? I thought you couldn't do much with a private student loan but pay it.
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