borrow a personal loan to repay my student loan?
the interest loan of my student loan is about 8.xx% , and i am thinking of borrowing a loan to pay it now to avoid additional interests.
I work full time with about $ 37,000/year pre tax, so is it a good idea to do that?
why and why not?
loan best answer:
Answer by Suddenly Human
Not a good idea. Student loan interest paid can be deducted on your income tax returns. It has it's own line item that is directly deducted from your annual income, which lowers your AGI and thus reduces your taxes. Not so from interest paid on a regular personal loan. Also, most federal loans have fixed interest rates and other great benefits such as loan forgiveness, loan forbearance, income contingent repayment plans and even loan discharge policies. (if you die or become disabled your loan is discharged, if your income is low you can have your payments recalculated... and many other options). You would loose all these benefits if you took out a personal loan.
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Phone Call with President about Student Loans
Image by MDGovpics
Governor O'Malley takes phone call with president about student loans by Tom Nappi at Governor's Office, State House, Anapolis, Maryland
Orignal From: borrow a personal loan to repay my student loan? and Phone Call with President about Student Loans
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