Debt Solution Source

I am expecting a student loan refund within the next couple of weeks. It is a Federal Stafford Loan. I am wondering if it would be okay to use it to pay off credit card debt. I would be able to completely eliminate my credit card debt with it, and it would really help lift some extremely high interest rates off my shoulders.

Any input would greatly appreciated!

I would say ‘yes’ you can. I didn’t have to account to the financial aid office on how I spent my student loan refunds but I would like to tell you to keep this in mind. Credit card debt is an unsecured debt that if you had to—-you could file bankruptcy on the debt if your income was within reason and what is allowed depending on the state you live in. However, STUDENT LOAN debt can never be discharged in bankruptcy…. I shouldn’t say never, but it is very, very, very hard to do. It’s as if your stuck paying for student loans until your old or die, haha… So why would you wanna borrow more money that your basically never going to get out of paying and paying it on a debt like credit cards? So I just don’t think you should take your student loan to pay for a debt like that. But the one thing you didn’t say was how MUCH credit card debt you had? If it is only like $500 – $1000, I would say go for it and pay the debt off…. Then, CUT UP that credit card or those credit cards and don’t use them again… Credit cards will get you no where you wanna be… If you keep using them, they will only bring you many sleepless nights… Although I gave a long response, I really think the answer comes down to the amount of debt owed…. If you can pay it off without a large chunk of student loans… I say go for it, you will sleep better in the end… But don’t be ‘borrowing from Peter to pay Paul.’ This won’t solve anything in the end…. Your just shifting debts from one place to another and in the end…………. don’t forget——- They have to be repaid!!!!!!

One Response to “Can I Pay Off Credit Card Debt With A Student Loan Refund?”