I did the paperwork for the one last spring... but some kinda snafu & my laziness caused me to not qualify for interest rate reduction....


otherwise....Im almost considering putting my balance on a o% BT deal CC...

New interest rates come out every July 1, based on the T bill rate. However your interest is based on a weighted average of your current loans. What you need to be looking for are lenders that offer back end interest reductions for on time payments and autopayments.

for several years I have not been able to deduct my SL interest on fed taxes. Rate is 5.4%. I've thought about a HELOC or HEL to pay the balance, but I don't like putting the house at risk.

I see nothing wrong with a BT to a credit card as long as you can pay the balance before the APR incentive ends.

Amex just gave me a 2.9% BT for life deal.....

cant remeber what my SL rate is off the top of my head...

gotta log onto Direct Loan Svc Ctr for that.....

back end int rate?? do explain....

I get 1/2 % reduction for EFT payments..... for all else Im clueless ( and will never admit that in public)

A lot of companies offer interest rate reductions after XX on-time payments, generally somewhere between 24-48 months (mine is 24 months). This reduction is often 1%, but it varies. I know my consolidation lender had 2% for this if you lived in certain states (alas, not mine!!), which I suspect were actually state programs folded into the consolidation rate. Note that it doesn't usually reduce your payment amount at that time, just how much of your payment goes toward principal.

Are you still eligible for the interest exemption on your taxes? If so, you might want to really think again about consolidating instead of BTing them. Even if you only have a year or two of this deduction left, you might want to think about continuing to use that and then, if they're still not paid off at that point, I'm sure you can find another BT option. As a credit, rather than a deduction, it's the only thing I get since I don't itemize, but I can still use that (and I'll be paying these stupid things off until I'm eligible for Medicare, so I'm looking for all I can get!!).

Hope this helps! Good luck!!


edited for spelling

Why can't you deduct your SL interest hegemony?

because of the stupid federal tax code.

Isn't SL interest always deductible?

Unfortunately, no. Up to $2,500 is deductible for those with incomes up to $XX (I don't remember what the income cut-offs are) and then the amount that's allowed decreases with higher salaries until you finally reach nothing.

Hope this helps!!

Yeah, found my answer:

Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. However, if your modified adjusted gross income (MAGI) is less than $65,000 ($135,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2005.