wwyd, get a 0% cc or get unsubsidized student loans? - Mothering Forums

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#1 of 6 Old 03-10-2013, 07:43 PM - Thread Starter
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SO here is the sitch


I am going to be taking grad classes to get my restricted teaching license which means I do not qualify for subsidized loans. I looked up the interest rate it is 6.8% currently for this school year. I have good credit and could qualify for a 0% cc to cover a lot of my classes/books/fees primarily the first year as by the second year I will ideally be working and paying as I go.


My budget is pretty strict, right now  I have about 200-300$ I am devoting to paying off my last credit card of 1200$. I also have about 4500$ in student loans with 2.91 interest rate and 5.0 interest rate.  Once my 1200$ is paid off projecting in october maybe sooner I will then have that 200$ (modest) freed up to be able to pay on the next cc. I am thinking of maybe paying for my summer classes with the cc and then go for the student loans for the fall/spring/summer? I don't know what I should do. 6.8% seems pretty high in interest. Off to rethink this plan. Input helpful.


The classes are about 265$ a credit hour (not too steep in price) looking at about 3500$ a semester with books/fees etc.

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#2 of 6 Old 03-15-2013, 01:09 AM
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Bumping up for inout. Anyone have advice to share? 

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#3 of 6 Old 03-15-2013, 08:40 AM
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How long does the 0% offer last? Unless you can pay off the entire balance in full before the interest rate rises (be honest with yourself) then I would take out a student loan. SL's can have flexible payoff terms if something comes up money wise in the future. CC will not have this option.
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#4 of 6 Old 03-15-2013, 10:39 AM
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As much as I hate, hate, hate, hate, hate, credit cards, they might be the better option for you in this case...because you can get rid of credit card debt in bankruptcy, but not student loan debt.


But check first to see if your school accepts them for tuition payments--one of the schools that I went to didn't, because of the fees the credit card companies would have charged them.

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#5 of 6 Old 03-19-2013, 04:35 PM
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Hmm this is tough... What about if you sign up for the cc, but then go for the student loan when you're getting close to the end of the 0% promo period? I'm not sure how this would work because I seem to remember the student loan payments went directly to the school. Is there a grace period on the student loans? I think interest did not start accumulating on mine until 6 months after I graduated. if so, it would probably be better to get the student loan, unless you're sure you'll be able to pay the credit card off in full before the promo period ends. Also, the interest on student loans is tax-deductible, and you can put them in deferral/forbearance if you run into problems finding a job down the line...

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#6 of 6 Old 03-19-2013, 04:37 PM
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Also if you have good credit, perhaps you can get a private student loan at a lower interest rate? 6.8% seems high.

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