Fed Financial
Pay off student loan with another student loan?
OK--- I have a 32,000 dollar private loan with Sallie Mae (my school is expensive, along with living expenses..I have since switched to a public university) the interest on this loan is something crazy like 14.25%.. I just got approved for a 40,000 dollar loan from Chase at 8.5% Interest, with a 1.99% origination fee. Does anyone think it would be to my advantage to pay off my high interest student loan with this new, fairly low interest student loan? I understand that the 1.99% origination fee will be thrown on top, but it sounds like it will save me quite a bit in interest (I still have 2.5 years to go!) Any Suggestions? I'm really just thinking long term here, and want to do whats best for me in the future, such as if I don't find a job right away, etc...Thanks!
Public Comments
- I'd do it, you'd save a hell of a lot on interest.
- Is the Chase loan rate an adjustable or teaser rate that could increase? If it's a fixed rate for the life of the loan, do it. Yes, the Sallie Mae rate is rediculous. My student loan rate is 5.25%.
- The Wachovia Education Loan has NO fees. The Chase loan does as you mentioned, and the Sallie Mae loan may have additional fees such as repayment fees. All of the these loans will be variable. Take some time to REALLY consider and understand each loan and calculate it out. Of course, only borrow what you need. Consider how long the 8.5% Chase loan interest rate is good for. Good luck.
