Can I Use a Personal Loan to Pay Off Student Loan Debt?
Most college graduates are committed to paying some type of student loan debt. Many ask can I use a personal loan to pay off student loan debt.
Today we will quickly break down the positive features of using a persona loan to accomplish this goal. But, we also want to keep you informed of what you might be giving up.
When making a choice to apply for a personal loan you should do your research on the types of personal loans that are available to you.
Positive Features of Using a Personal Loan?
There are some positive features to applying for personal loan and then paying off or consolidating some of your student loan debt.
1. Personal Loans are Unsecured
One great thing about a personal loan is that it is unsecured. This just means they have no property or assets attached. Once you get approved for a personal loan up to $35,000 it is deposited directly into your bank account. You can then consolidate and pay off debt. Student loans currently cannot be forgiven even in a bankruptcy. They follow you around forever until they are completely paid off.
To get a personal loan you will need a good credit score, steady employment and salary. If you have all of these a personal loan might be something worth considering.
2. One fixed payment and rate with an end date
When you have multiple student loans it might be easier to consolidate them and just pay one fixed payment.
3. Student Loans Will be Paid Off
If you apply for a personal loan and get approved, using it to pay off your student loans will complete and reflect on your credit history.
Even though you now have another new loan, it is a personal loan and if paid responsibly will look good on your credit history.
Features of Student Loan Refinancing to Consider
Getting a personal loan can seem like a great thing as it gets you out of the student loan trap. The only issue is there are some positives to having student loans.
If you pay off your student loan or loans with a personal loan, it is irreversible. Even though a student loan can follow you around for years until it is paid off, there are things to consider. There are a lot of flexible programs when you have student loans. These are just something to consider before you take out a personal loan to pay them off.
1. They can setup programs for repayment based on your income.
2. Interest rates tend to be lower.
3. If you go back to College they can be deferred
4. Student Loan interest is tax deductible. Personal Loans interest is not.
5. Forfeit debt forgiveness under certain circumstances.
Think hard before you make a choice of using a personal loan to pay off student loan debt. All of these items above should be considered.
The Bottom Line:
If you are serious about wiping out and freeing yourself from student loan debt, a persona loan could be a good option.
Research it and decide whether you are willing to give up the positive items under the student loan umbrella.
If you are then check out your options for a personal loan.
Personal loans can be used for all types of items such as consolidating credit cards, home improvements, large purchase or to handle emergencies.
Where Can I Get Personal Loans?
Below we list a few of the lending platforms we recommend.
You can visit LendingClub.com – The largest peer to peer lender.
PersonalLoans.com Large Lending Network
For all types of credit scores you can visit PersonalLoansDepot.com