Accept a student loan to pay off a car loan?


So here’s the deal…

I have a $4000 auto loan balance at 6.6%. I am also a graduate student and am elegible to take out federal stafford loans to cover tuition. However, because I receive a tuition benefit from my job, any amount I receive from a stafford loan will be given as a financial aid refund that I can use for anything.

While I do not need it for living expenses, I am thinking about taking the loan to pay off my auto loan. Then I can consolidate the stafford loan into my previous student loans at an interest rate of 5%. This loan would also be tax deductible.

Is this worth it?

Sell and Rent Back

Categories : student loan



Yes, you can go ahead the take the federal stafford loan..


It is 4 grand. Just pay it off. If you do $500 per month, you will be done in about 9 months. Why mess with a loan and turn that 4 grand into a ten year loan?

Just pay it.


When it comes to the financial aid process, people often ask “Where do I begin?” We’re here to help and guide you throughout this process. This page outlines the steps to applying for a Stafford Loan. Basic Stafford Loan Requirements are, You must have submitted a FAFSA. For subsidized Stafford Loans, you must have financial need as determined by your schoolbe sure to include the school’s FAFSA code (or prospective schools, if you are a high school student) to ensure that the results are sent to your school’s financial aid office.

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