Question

I've learned a lot from you and I have so many things I want to ask all of you, but I will start with this. Should we pay off our van that has 15K left with a 1. 9% interest rate, or put that 15K toward my husband's student loans? They are fedloans and we owe about 47K (I added a little to it knowing how interest accrues) and we originally were going to do the Income Driven repayment plan, but we are rethinking that and thinking we will refinance them and just pay them off quickly now. They are about 5. 6% interest rate. My first thought was to pay off the van, free up that monthly payment, and use that to tackle the student loans. On that note. who should we refinance with?  

Answer 1

Van. Then use that payment to pay on the loans.  

Answer 2

Check out splash financial

Answer 3

Student loans

Answer 4

If you can stay serious, I would tackle student loans. The car interest is pretty low

Answer 5

Pay on higher interest first.  

Answer 6

We were pretty much in the exact same situation. We decided to pay off the car even though interest was lower than the student loans so that we would have an extra $250/mo to throw at the student loans. We don't regret the decision we made and we would do the same thing over again if we had to

Answer 7

Question? If you pay off the van and use that payment towards the student loan will you be covering the interest plus some principal?  

Comments

@haymaker30 well we would refinance them because the interest rate is really high and they are federal loans. We were planning on getting the loan forgiveness after ten years but we are reconsidering that now (after paying a TON in interest already ).  

Answer 8

One thing about refinancing Federal loans is that you lose any federal protection like deferment, forbearance, IBR, etc. The refinanced loan will be considered a private student loan.