So you go to college trying to build your career, but you find that your debt distracts you. You may consider using your student loan to repay your debt... but is this really a good idea?
When you sign a student loan agreement, you tell the lender that you will use the loan to pay for expenses that are directly related to your education. This may include the cost of living, and personal debt can be said to be part of these costs. Your lender may not be happy to learn that you use a student loan to make a credit card payment, but if you incur credit card debt due to attending school - you may be saying that your debt is related to your education.
The problem is that after you complete your studies, you must begin to pay for your student loan. Although you may have saved your credit card financing costs by repaying your debt with a student loan, your loan during school hours has quietly registered interest. When you have to start repaying student loans, your interest charges will be more than paying off your debt through part-time or full-time earnings.
It is a good idea to avoid student loan repayments if possible. In the long run, you will end up paying more - the debt that you can repay in a year or two will last for a decade or more, increasing your profits throughout the entire time.
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Orignal From: Personal Finance Tip - Should I use student loans to pay off debt?
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