topic Payoff Student Loan with Personal Loan? in Student Loans

Payoff Student Loan with Personal Loan?

Anonymous — Wed, 16 Aug 2017 00:02:58 GMT

Hello all! Long time lurker and now I've decided to make my first post. There always seems to be loads of useful information on this site, some very knowledgeable people. I am now turning to the forum to hopefully help me with a personal decision.

I currently have a loan through Navient for a total of $2,285. The loan was "opened" in the Fall of 2012. The loan has been in deferment since last year as I have gone back to school to finish pursuing my degree.

Now here is my question. . . I was thinking of getting a personal loan and paying off the balance of my student loan, does this sound like a good idea? Back after the 15 months were up I have missed payment history for 4 months because I was gone to basic training (Air Force Reserves) then when I got back I was making the payments on time. Then the loan, as stated in the beggining, went into deferment because I re-enrolled in school.

I figured getting a personal loan of $2,500 to finally payoff my student loan would be a good idea because then it would finally be paid off! Also, I'd be opening a new payment account which I intend to payoff in a year... by doing so I'd imagine I'd bring up my score?

Anyways any feedback and suggestions on this idea would be greatly appreciated! Thank you

Re: Payoff Student Loan with Personal Loan?

Anonymous — Wed, 16 Aug 2017 17:40:33 GMT

You lose some points taking out a new loan. Inquiry and the new loan debt ratio will be 100%, so if goal is to increase score this wont do it.

Is loan Federal or private? How much lomger until you can payoff? Federal loans have some protections built in that personal loans do not.

Re: Payoff Student Loan with Personal Loan?

Anonymous — Wed, 16 Aug 2017 17:48:05 GMT

The loan is federal. I'd say next summer is when I can pay it off in full

Re: Payoff Student Loan with Personal Loan?

scvbd99 — Thu, 17 Aug 2017 02:27:40 GMT

I'd say forget about score impact, and figure out how much more or less you'll be paying in total for the money you're borrowing.

What's the interest rate on the current student loan?

What's the interest rate on the personal loan you're looking at?

Re: Payoff Student Loan with Personal Loan?

Anonymous — Mon, 21 Aug 2017 19:46:13 GMT

I would think the interest rate difference would be the key factor here. Also the student loan has some credit history. When you pay off the loan you will lose points on both the close of the loan the credit pull on the new loan and the age of 0 on the new loan. Might be good for a long term strategy but for short term I don't see much gain.

Re: Payoff Student Loan with Personal Loan?

StartinOver — Thu, 24 Aug 2017 22:07:37 GMT

You likely get a better score having an installment loan than a personal loan. Plus, if you don't change, you likely have lower interest.

Re: Payoff Student Loan with Personal Loan?

Anonymous — Wed, 30 Aug 2017 18:18:57 GMT

i would leave it as it, not worth the HP and might not get a lower APR. TRY to pay extra/month to pay it off quicker.

Other option, IF you think you can pay it off in a year or less and have a credit card with a big CL 0% BT for 1 year, you can do that and avoid the %$ BT fee is usually 3%