student loans and private line of credit.

by Sarah
(Halifax)

Hi I currently have a large student debt (~60,000) part of that is in government loans and 18,000 is in a student line of credit. The government loan rate is about 10%, and the line of credit is 6.25. In addition I have wanted to get my cosigner off of my line of credit, but the bank said that to do that I would need to take out a personal loan to pay it at a higher percent ~9%. Currently I don't work, I have an at home mom since university, my husband is employed and we can make the payments okay, we also have about 70,000 in equity on our house. I am just wondering if there is a better way to go about paying these loans. Is consolidation at 7-8% even a possibility?

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Apr 08, 2008
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Paying off student loans
by: Julie (Website Owner/Moderater)

Hello! I would recommend first of all,that you focus on paying off the higher interest rate first. Secondly, I would suggest that you look into a home equity loan to pay off your government loan; often they have much lower rates than 10%.

Most importantly, start cutting unnecessary items in your budget (eating out, cable television, cell phones), and put the extra money towards your debt.

If you can, look for an "at home" job or see if you can work a few hours on the weekends while your husband is at home. This money could go right to your debt. Don't spend it on anything else.

Hope that helps you some.

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