Balance of student loan onto a credit card?

November 24th, 2009 | by admin |

marie76444 asked:


My husband has some student loans and they are defferd till 2010 but they are accuring interest while he is in school.
I have heard that ppl put there loan on credit card with a low interest rate and pay monthly on that so you wouldnt have to pay the extra interest on the student loans…i hope that makes scense! Has anyone done this? Is this possible? What are the advantages, if any or disadvantages to this..Thanks

ROBERTA

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  1. 3 Responses to “Balance of student loan onto a credit card?”

  2. By rhsaunders on Nov 25, 2009 | Reply

    Approach this with great care. Most credit card balances incur interest at a rate notably higher than the standard student loan rate. Some credit cards have promotional deals at very low interest rates (I have used some of these), but the duration is limited and if you can’t pay the thing off before the interest rate jacks up, you are toast.

  3. By Marianne on Nov 28, 2009 | Reply

    You can contact the lender and ask them to bill you for the interest while you are in school/deferment.

    Credit cards have higher interest rates and can change those rates for no reason.

    You can also go back to defering the interest if times get tough, but this isn’t the case if you switch to a credit card.

    If you want to pay the interest, just do it through the lender. Try it for a while, you can always change back or try that crazy credit card thing later.

  4. By Mav on Dec 1, 2009 | Reply

    Credit card rates are much higher then student loan rates.

    If you believe you can pay a credit card payment then make arrangements to open an account at a local credit union or a local bank of your choosing that is not your regular bank. Any where but Bank Of America. Then write a check and deposit it every month. Don’t look at the balance and don’t check on it. Then, build up a nest egg that you can have to pay that loan or get you out of a jam if need be.

    It is recommended that you put away three months salary.

    This will protect you and is much better then a credit card.

    Is there any way he can apply for subsidized loans?

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