Comments on: Reader Question: Student Loans and Credit Card Debt

By: » Weekly Roundup: Weber Smokey Mountain Edition

» Weekly Roundup: Weber Smokey Mountain Edition — Mon, 31 Aug 2009 03:08:58 +0000

[...] answers a reader question about whether to pay off credit cards or student [...]

By: loan modification help

loan modification help — Wed, 06 May 2009 20:57:35 +0000

Student loans are relatively easy to get to ,but later on you have to pay it back. You have to be responsible for the debt you create.

By: Loan Modification

Loan Modification — Wed, 21 Jan 2009 23:57:46 +0000

Borrowing money for college is a big responsibility but college remains a smart investment for obtaining a satisfying career that earns a competitive salary.

By: kimmy

kimmy — Sun, 14 Sep 2008 11:06:38 +0000

Before u getting your 1st student loan..

KNOW YOUR LOANS: FEDERAL VS. PRIVATE

Though federal and private loans are both eligible for consolidation, federal loans have superior rates and terms, which are set by the government. However, federal and private loans must be consolidated separately.

Federal Loans Have Favorable Terms

There are several types of federal loans that can be consolidated. These include:

* Stafford loan
* Perkins
* Parent PLUS
* Supplemental Loans for Students (SLSs)
* Health Professions Student Loans (HPSLs)
* Loans for Disadvantaged Students (LDSs)
* Nursing Student Loans (NSLs)
* Health Education Assistance Loans (HEALs)

Different loans carry different interest rates. Some are fixed, some are variable. While it’s possible to consolidate fixed–and variable-rate loans to a fixed rate.
Student Loan Consolidation rebate

By: peterson

peterson — Fri, 18 Jul 2008 21:50:15 +0000

There is a some good colleges where every student want to study but the problem they face is of finance. Those who have financial problem they are not be able to take admission in the good colleges. There is only one way for them and that is to take loan. So many student took loan for their study. peter Debt Consolidation

By: credit card for students

credit card for students — Wed, 15 Aug 2007 18:14:41 +0000

I think Thomas was right. A student loan seems to be more viable than credit cards. But before considering these things you need to know how to build your credit score first.

By: usacreditcards

usacreditcards — Wed, 01 Aug 2007 08:50:24 +0000

A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user’s account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to ‘revolve’ their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. http://usacreditcards.cn/

By: Jordan

Jordan — Fri, 20 Jul 2007 21:34:29 +0000

As someone who is half-way through his MBA, I too faced the deferment issue.

1) Yes, you can continue to pay principle and interest without affecting your deferment status (at least on Stafford loans).

2) Have you considered school part time instead of full-time (or full-time student, full-time employee)? I am not familiar with Microbiology PhD programs, so this may not work, but MANY employers will help you pay for your schooling, which can protect you from additional debt. If your stipend affords to everything you need, and you can quit your job, then this wouldn’t make sense. For me, my employer pays 80% of a private institution tuition and 100% of a public institution tuition, up to a total of $100,000. For my MBA, my employer will have covered roughly $80,000 for me, with no future commitment required. If your employer doesn’t do this, remember that there are employers who might, and a job change might be the best way to reach your education goals without sacrificing your financial well-being.

3) I disagree with putting off going back to school for another year. It is so hard to get motivated to go back to school that if you have the energy now, do it. You may not have that passion next year, and it seems your education will pay off in the long run. Most people who talk about going back for Masters/Doctorate never do, and many who begin applying quit before they ever get enrolled.

4) Since you mentioned it is just you and your cat, I am assuming you are unmarried/unattached and without kids. This is the time in your life that you can be selfish and get something done for yourself. It will be so much harder if you wait until you have a family (assuming you desire one).

Good luck!

By: thomas

thomas — Fri, 20 Jul 2007 02:56:08 +0000

You can only defer your student loans a certain number of times (I believe 3) so make good use of them. Student loans won’t hurt your credit score as much as CC debt, so that is something to consider.

If you do get into grad school, I’d avoid defering the loan before starting b/c like Charles said they’ll automatically go back to deferment and you can simply pay the monthly interest while using the difference to pay down you CC.

By: crazypumpkin

crazypumpkin — Wed, 18 Jul 2007 16:11:46 +0000

Yay! Thanks JLP for posting my question. I had a feeling I was making the right choice, but really needed the input of someone with more knowledge than I.
To respond to savvy, as long as I maintain my now frugal lifestyle, my stipend in grad school should be enough for me to live off of. I’ll be going for a PhD in Microbiology. I don’t want to be a tech doing someone else’s research for the rest of my life, so getting a PhD will allow me the opportunity to set up my own lab and teach at the University level. I could just do a masters, but like Charles said, it would have to come out of pocket. And in my field all a masters would get me is a higher tech position than I have now, but no real advancement.