Student Loan Question

Discussion in 'Credit Talk' started by sabannseg, May 11, 2010.

  1. sabannseg

    sabannseg Member

    I owe $65,000 in student loans. I have an education that would have cost me $125,000 so I am ok with the amount. I also have about $7,000 in cc debt that I am NOT ok with.

    My question, I read that there are government plans that can take your monthly payment down by extending the amount of time so that more money is freed up on a monthly basis.

    Will it effect my score negatively is I attempt to take advantage of the program so that I may pay off my CC balances? My loan rates are 3-4%, but my CC are 9-19%.

    Thanks in advance!
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Here's a link to an article I wrote last year on managing student loans:

    Top 5 Ways to Manage Student Loans

    I touch on many of the government plans you're referring to, so hopefully it helps a little. Also, taking advantage of IBR or one of the other options to lower your payments won't negatively affect your credit score. As long as your keep making all your payments on time, your score should only be strengthened throughout the process.

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