How a home equity loan can be used to ease the burdens of high interest student loans.
Financial advisers encourage borrowers to be always prepared since the future of student loan forgiveness still remains unsure. (Photo: Vox)
The Burden Of High Interest Student Loans
Many Americans are burdened with high interest student loans, and for 40% of adults, the debt is unmanageable. However, using a home equity loan can help make paying off high interest student loans easier.
By replacing high interest student loans with a home equity loan, which currently has an average national interest rate of 8.95%, borrowers can potentially improve their interest rates in regard to their high interest student loans and save money.
Additionally, consolidating multiple loans, such as a high interest student loan, into one home equity loan simplifies repayment and reduces the stress of managing multiple lenders and payment schedules. Moreover, a home equity loan offers a predictable fixed rate, making budgeting and planning for repayment more manageable compared to paying off high interest student loans.
According to a published article by CBS News, even if the current rates for high interest student loans are not favorable, a home equity loan can still be used to pay off other high interest student loans and debts, like credit card debt.
The Burden Of Paying Off Student Debt
In a published article by ABC News, Nisa Betancourt has graduated college and experienced a pause in student loan repayments. However, repayments have now resumed.
Financial advisor Mary Ryan suggests focusing on controlling spending and being prepared for the necessary payments, as the future of student debt relief remains uncertain.
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