Comments on: What Would You Tell The Grad Student with A Loan Maturing Soon? http://debitversuscredit.com/personal-finance/loans-and-credit/grad-student-loan-maturing/ A personal finance blog dedicated to fighting financial ignorance Thu, 02 Feb 2012 03:05:35 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lascurain34@gmail.com http://debitversuscredit.com/personal-finance/loans-and-credit/grad-student-loan-maturing/comment-page-1/#comment-2696 Lascurain34@gmail.com Wed, 20 Jul 2011 07:14:33 +0000 http://debitversuscredit.com/?p=852#comment-2696 No variable interest rates – If you have accumulated Student loans and little things that have in the school as phone bills tend to be variable interest rates. This means that you are not necessarily the same amount… Not even a fraction of a percentage point can equate to thousands of dollars over the life of a loan. Announce base interest rates for Student loan consolidation are similar from one company to another… No variable interest rates – If you have accumulated Student loans and little things that have in the school as phone bills tend to be variable interest rates. This means that you are not necessarily the same amount… Not even a fraction of a percentage point can equate to thousands of dollars over the life of a loan. Announce base interest rates for Student loan consolidation are similar from one company to another…

]]> By: Joseph http://debitversuscredit.com/personal-finance/loans-and-credit/grad-student-loan-maturing/comment-page-1/#comment-511 Joseph Fri, 23 Jan 2009 03:00:59 +0000 http://debitversuscredit.com/?p=852#comment-511 Fantastic points Kristy! I'm glad to hear that someone else is recommending checking with a credit union. I'm quite sure that even with being only part time that Ann would have a much easier time getting approved for another secured loan at a credit union - especially if she can prove that her rental income is steady. Fantastic points Kristy! I’m glad to hear that someone else is recommending checking with a credit union. I’m quite sure that even with being only part time that Ann would have a much easier time getting approved for another secured loan at a credit union – especially if she can prove that her rental income is steady.

]]> By: Kristy @ Master Your Card http://debitversuscredit.com/personal-finance/loans-and-credit/grad-student-loan-maturing/comment-page-1/#comment-510 Kristy @ Master Your Card Fri, 23 Jan 2009 02:55:19 +0000 http://debitversuscredit.com/?p=852#comment-510 I don't recommend putting the remaining balance on your credit card for several reasons. 1.) As Debit vs Credit aptly points out, the weighted average of your interest rates would knock your payments into the $600 range, which may be outside of what you can currently afford to pay. 2.) Transferring secured debt to an unsecured vehicle is going to wreak havoc with your credit score and could cause the interest rates on those two cards to go up, which would increase your payments further. 3.) No tax deductions available on the interest of that unsecured debt. Given your situation, I recommend visiting a credit union or savings and loan institution. Be sure to have the lease agreement on hand. It may even be beneficial to have your tax returns (if you're reporting the property as rental and showing it on the tax return). You may not necessarily have to show earned income from the deal, but if you can prove you're not making the payments, that may give you a little leverage in dealing with the financial institution. It all depends on who you go through, though. The credit union I work for would consider that, so it's not unheard of. A different option would be a home equity loan. Sometimes these can be easier to get than a mortgage, and if you so chose, you may even be able to get cash back out of the deal. The only downside to this is that, a home equity in first lien position does not come with escrow. You would be solely responsible for your taxes and insurance. But, the interest in most cases is tax deductible, so that's an advantage for you. Something else to consider is to sell the property outright. It clears up the problem of refinancing and would even give you a little extra money while you're in grad school. But, I don't know the circumstances surrounding the house, so you may not want to. It is available to you, though. Another option to consider - and one I only mention as a very last resort - is a reverse mortgage. Given your situation, you may be able to do this, as well. Now, the specific details of how this works will vary per institution, so you'll want to check with yours to be certain. But the premise of this deal is that basically, you're mortgaging your home to the bank. They make monthly payments to you and at the end of the term, they own the property. Not very attractive, but an option nonetheless. Hope this helps! <abbr><em><abbr><em>Kristy @ Master Your Cards last blog post..<a href="http://masteryourcard.com/blog/2009/01/20/when-to-use-your-emergency-fund/" rel="nofollow">When To Use Your Emergency Fund</a></em></abbr></abbr></em> I don’t recommend putting the remaining balance on your credit card for several reasons.

1.) As Debit vs Credit aptly points out, the weighted average of your interest rates would knock your payments into the $600 range, which may be outside of what you can currently afford to pay.

2.) Transferring secured debt to an unsecured vehicle is going to wreak havoc with your credit score and could cause the interest rates on those two cards to go up, which would increase your payments further.

3.) No tax deductions available on the interest of that unsecured debt.

Given your situation, I recommend visiting a credit union or savings and loan institution. Be sure to have the lease agreement on hand. It may even be beneficial to have your tax returns (if you’re reporting the property as rental and showing it on the tax return). You may not necessarily have to show earned income from the deal, but if you can prove you’re not making the payments, that may give you a little leverage in dealing with the financial institution. It all depends on who you go through, though. The credit union I work for would consider that, so it’s not unheard of.

A different option would be a home equity loan. Sometimes these can be easier to get than a mortgage, and if you so chose, you may even be able to get cash back out of the deal. The only downside to this is that, a home equity in first lien position does not come with escrow. You would be solely responsible for your taxes and insurance. But, the interest in most cases is tax deductible, so that’s an advantage for you.

Something else to consider is to sell the property outright. It clears up the problem of refinancing and would even give you a little extra money while you’re in grad school. But, I don’t know the circumstances surrounding the house, so you may not want to. It is available to you, though.

Another option to consider – and one I only mention as a very last resort – is a reverse mortgage. Given your situation, you may be able to do this, as well. Now, the specific details of how this works will vary per institution, so you’ll want to check with yours to be certain. But the premise of this deal is that basically, you’re mortgaging your home to the bank. They make monthly payments to you and at the end of the term, they own the property. Not very attractive, but an option nonetheless.

Hope this helps!

Kristy @ Master Your Cards last blog post..When To Use Your Emergency Fund

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