STYLETHREAD -- LET'S TALK SHOP!

fashionista L · Coach

Student loans to pay off debt?

Farrah · Marc Jacobs

Before I give my opinion I think that it is important to know how much cc debt you have. Just a ballpark is okay.

fashionista L · Coach

I am embarassed to say 7500-10000

subwolley · Kate Spade

Your cc debt amount isn't all that bad, if you consider how many people have way more than that. If you have student loans, and you get disbursments after your loan pays tution and fees, it could be in your best interest to pay off you cc debt, instead of spending that money on something else you don't need. There is good debt and bad debt. Student Loan debt is considered good debt, where as cc debt is considered bad debt. I wish I would have used my disbursments to pay of my cc debt.

fashionista L · Coach

I do get financial aid and it covers the cost of my tuition but I was thinking of applying for a student loan just to cut down on my expenses in a way, by lowering my interest rate on debts I already have

Kari · Dooney & Bourke

It isn't necessarily a bad idea...however, i feel like i must throw in my 2 cents....

If you do this, you have to know yourself and trust yourself not to just charge them back up. I did not have as much debt as you, probably around $2000 in undergrad. I took out a student loan my junior year and paid it off and eventually found myself right back in debt b/c it was too easy of a way out.

That is my only concern with students and credit cards and getting loans to pay them off...Just resolve to STOP using your CC.

If you can do that, then I think it is okay to get a student loan to pay them off.

Farrah · Marc Jacobs

Don't be alarmed when I say this, but that really is a lot of money for a college student to be in debt. The student loan is one option, I would go another route though. I would keep only the card that you have had the longest (and pay that off ASAP) so that you maintain your credit history. Cut it up though, don't use it. You are only keeping this card to maintain that longevity on your credit report.

For all of your other cards go to www.creditsolutions.com and talk to them abou debt settlement. This is very different from credit counseling or debt consolidation. They will actually go to your creditors as your liaison and settle your debts for you. They will work out a plan for you to pay a certain amount each month (which is very reasonable) and you will have everything paid off in under 36 months. A friend of mine did went through them and the program is amazing. She had $23K worth of debt. After they were done settling her debts she only had to pay $12K including programs costs and had all of her debt paid off in under 3 years.

halleybird · Hermes

My husband did this in college. His debt was a little less (but not much less) than yours. He got into cc debt trying to keep his family from paying much $$, and he was also a little irresponsible. In retrospect, it was probably the right thing to do, especially where his credit score was concerned. That said, we are still paying for it, and will be for the next 6 years.

Alikat · Kate Spade

If you are running up debt because you are a student (i.e. you have expenses and money burdens due to school) - then yes you should get student loans.

One other thing you want to consider - student loan rates are pretty high now, like 6.8%. If you get unsubsidized loans you are racking that up while in school (gov't pays the interest rates on subsidized loans during school) . You may be able to get better rates from credit cards.

cahabo · Kate Spade

Just keep in mind that if you use studen loans to pay off your debt, you will end up paying A LOT more in the end. I took a studen loan in the amount of $4000 with deferred payments and interest. I believe when I'm finally done paying for it, the total payments will be something like $20,000. Ridiculous! Of course it depends what rates you get though. I personally don't think it's worth it and I will probably not get another student loan again!