Paying off student debt

Pay your parent's loan off. Then move out. No adult making 40k should be living off their parents. No matter their debts.

Quote from saladdin : Pay your parent's loan off. Then move out. No adult making 40k should be living off their parents. No matter their debts.

Not very helpful. And I am trying pay off my parents loan, I am not asking them to pay for it I'am trying pay for it and I going to knock out the 4K in one shot this month just trying find the best way to take care of the 18K ( my dad said he can refinance that loan for lower interest since its under his name and then I can pay it off with low interest cost.

Quote from slickfree : Not very helpful. And I am trying pay off my parents loan, I am not asking them to pay for it I'am trying pay for it and I going to knock out the 4K in one shot this month just trying find the best way to take care of the 18K ( my dad said he can refinance that loan for lower interest since its under his name and then I can pay it off with low interest cost.

How helpful are you mooching off of your parents?

Quote from slickfree : My parents want me to pay off my loan ASAP and are willing to help, I talked to my dad, he mentioned refinancing my student loan and have a lower interest rate on all my loans. Is this possible, we own a house but still owe mortgage on it.

Yes, it's definitely possible as long as they have enough equity in their house. Or, if your dad wants to refinance anyway due to the current historically low mortgage interest rates, see if he can pull some extra cash out with the refi and lend that money to you.

Keep in mind that there is a tax consequence to your dad lending you money interest-free, which is that he will be imputed interest by the IRS and have to declare it as income. I'm not sure how it would work if he's a cosigner on the loan, since in that case he is jointly liable for the debt. Either way, have your dad's accountant look at the arrangement to ensure it's all kosher. If he does have to declare it as income, offer to pay the income tax on it so he's not out of pocket anything.

Quote from slickfree : Not very helpful. And I am trying pay off my parents loan, I am not asking them to pay for it I'am trying pay for it and I going to knock out the 4K in one shot this month just trying find the best way to take care of the 18K ( my dad said he can refinance that loan for lower interest since its under his name and then I can pay it off with low interest cost.

Don't worry about mooching too much. You're doing the responsible thing by paying off your debt as quickly as you can so you can be financially secure in the long run without continuously asking your parents for help down the road. If you feel like a mooch, offer to help out with food/chores/whatever and I'm sure your parents will appreciate it.

Quote from RedbirdsJ : You will end up paying more interest if you consolidate. They will blend your rates and prevent you from selectively paying down the principal on the higher rate loan(s).

Agreed. I wasn't paying much attention when I consolidated mine (pre-2008) and was satisfied knowing the rate was lower. Now I have the ability to pay down the loans early, but can't target the individual higher rate loans, because they're blended with the lower rate loans.

consider http://www.brazosloanservicing.org/

Quote from saladdin : Pay your parent's loan off. Then move out. No adult making 40k should be living off their parents. No matter their debts.

Now shut your mouth buddy.

OP stay with your parents if you can. Why not save atleast $750 a month. couple years of savings you will have a nice down payment on a house.

Quote from RedbirdsJ : I agree with the poster above with regard to asking your parents for a loan. Use your parents' help if they are willing and have equity in their house. PenFed is right now offering a 1.99% HEL with a 5 year term. Figure out how much you can comfortably pay over the next 5 years without over-leveraging yourself and ask your parents to borrow that amount and then lend it to you. Use the proceeds to pay off your highest interest loans and you can then make the payments on the HEL. They will also get a tax benefit from it. .

Have your parents loan you the money to pay off the loans.... and then declare bankruptcy!

Quote from RedbirdsJ : Yes, it's definitely possible as long as they have enough equity in their house. Or, if your dad wants to refinance anyway due to the current historically low mortgage interest rates, see if he can pull some extra cash out with the refi and lend that money to you. Keep in mind that there is a tax consequence to your dad lending you money interest-free, which is that he will be imputed interest by the IRS and have to declare it as income. I'm not sure how it would work if he's a cosigner on the loan, since in that case he is jointly liable for the debt. Either way, have your dad's accountant look at the arrangement to ensure it's all kosher. If he does have to declare it as income, offer to pay the income tax on it so he's not out of pocket anything.

imputed interest is basically moot at this point in time... annual mid-term AFR (3-9 year loan) for December 2012 is 0.95%

Quote from saladdin : Pay your parent's loan off. Then move out. No adult making 40k should be living off their parents. No matter their debts.

There is nothing wrong with living with your parents if they let you. If it saves you $750-$1200/month on rent that can help you pay off the debt faster, why not? Why do you think an adult making 40k or more should not be living with their parents? Don't say its because they are an adult and they shouldn't mooch off their parents. I mooch off my parents all the time and they are more than willing to let me mooch off them (granted, I've returned to school since working for a year, but I mooched when I was working too, even though I was living on my own). If your parents will let you, it doesn't mean you are irresponsible for mooching. Times have changed, if you haven't noticed. People are living with their parents far longer than they used to.

Quote from XReflection : There is nothing wrong with living with your parents if they let you. If it saves you $750-$1200/month on rent that can help you pay off the debt faster, why not? Why do you think an adult making 40k or more should not be living with their parents? Don't say its because they are an adult and they shouldn't mooch off their parents. I mooch off my parents all the time and they are more than willing to let me mooch off them (granted, I've returned to school since working for a year, but I mooched when I was working too, even though I was living on my own). If your parents will let you, it doesn't mean you are irresponsible for mooching. Times have changed, if you haven't noticed. People are living with their parents far longer than they used to.

Agree. When I first moved out to where I am now, I bought a house when I had an option to live with family. If I'd lived with them for a year, I would've saved up an additional 20-30K, which could've gone towards down payment, which could've helped me a bunch in the long run.

I think the social stigma of living with your parents is overrated, especially depending on where you are. If you feel bad about it, maybe chip in towards your parents' mortgage - win/win for you and them.