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August 05, 2005

Students get creative to pay off loans

The MSNBC reports that some students have become very creative with their already consolidated student loans. Since you can consolidate them only once, many of those who did it years back, got interest rates as high as 7.5%. The story talks among other things, about using home equity as the tool to pay off high interest consolidated student loans.

We think it is a good approach, considering the highly appreciated home values and tax deductible benefit of home equity line of credit or HELOC and cashout refinance. Read more about free debt consolidation and home equity line of credit.

The thing to keep in mind is HELOC interest rates has been steadily rising with somewhat regular Federal Reserve quarter point (.25%) increases and are currently based on Prime Rate at 6.25%. If you have good credit and enough equity, you can get them down to as low as 5.24%. Check Charter One, Chase among others.

Please note this is for your information only. no recommendations are given, consult qualified personal banker and/or accountant.

Posted in Student Loans at August 5, 2005 12:50 PM

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