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Student Loans – Forbearance

By Terry Savage on April 10, 2020 | College Savings / Student Loans

Hi Terry! I currently owe around $75,000 in federal student loans with subsidized/unsubsidized and parent plus loans, with them being in forbearance I plan to continue to pay while the interest rate is 0% (generally my interest rates range from 3%-6%), however I was wondering if going to the bank and taking out a personal loan (with interest rates being so low) for the full amount and paying off the loans through the government would be advised?

Terry Says

You won’t get a personal loan at a low interest rate with that kind of debt. But i fyou have a job, you can go to www.SoFi.com and see if you can refinance. Then again, if you refinance a Federal loan, you can’t use forbearance again!

The best loan to take out would be a home equity loan, which has a low rate. But I’m assuming that you don’t own a home. This is the HORRIBLE burden of student loans — high rates, and almost impossible to get out from under. Let’s see if Congress does something this time around.

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