answersLogoWhite

0

  • Law & Legal Issues
  • Personal Finance
  • Credit and Debit Cards
  • Investing and Financial Markets
  • Loans
  • Student Loans and Financial Aid
  • Money Management
  • Credit

Can student loan money be used to pay off your parents' high interest not-education-associated credit card debts?

User Avatar

Wiki User

βˆ™ 2011-09-12 16:01:07

Best Answer
Copy

Many times the money for a student loan is transfered directly from the lender to the University. Therefore you would be unable to do this. If your parents have high interest credit cards, the best thing to do would be to refinance your home or get a home equity loan. These are available to many people even if they have bad credit, they just have to have equity in the home. Another option would be for them to goto a credit consoling agency. They may be able to help them pay off their credit cards or get the rate reduced or payments combined.

Henry

2011-09-12 16:01:07
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Add your answer:

Earn +5 pts
Q: Can student loan money be used to pay off your parents' high interest not-education-associated credit card debts?
Write your answer...
Submit

Related Questions

Do you need a job to get a credit card?

Normally you need a source of income to get a credit card. Some credit issuers, though, will issue a credit card to a college student based on his parents' credit record; this is done with the parents' permission, usually with the condition that the parents are responsible for any delinquent balances. (This helps the student establish a credit rating, with the risk of the student demolishing the parents' rating.)


Where can you a student card?

credit or parents sign contract


Where can a student get a student loan that has no credit bad credit and parents don't qualify as cosigner and gotten all federal loans I gualify for?

== ==


Does CapitalOne offer student credit cards?

Yes, CapitalOne does indeed offer student credit cards. They offer very low interest rates.


What are the average interest rates for student loans?

Most student loans are interest free when you are still attending college, then increase from there. It really depends on your credit score to what interest rates you qualify for.


Will I have to pay higher interest rates on student loans if I have bad credit?

Anyone with bad credit will pay higher interest rates on a loan, not just a student loan. The lender charges a higher interest rate which enables the facility to receive more interest quicker in case of default.


How much interest rate does Wells Fargo have to charge you for a student credit card?

For a Wells Fargo student Credit Card, you can usually expect an interest rate about 14.1% to 14.5% APR. This is one of the lowest credit card interest rates they offer. Keep in mind that interest rates are always subject to change. Check out the wells Fargo website for the latest interest rate information.


What is the interest like on student loans for people with bad credit?

There are a number of government loans that are offered with no credit checks. In order to be eligible for these loans, you must fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is designed to determine your estimated family contribution. If you are a dependent, you will have to submit financial information for your parents as well as yourself. If you are independent of your parents, the form will only apply to you.


What is the average interest rate of student credit cards?

Discover and Citi both offer credit cards for students. They both also come with 0% interest as well as no annual fee.


Are the interest rates the same for student credit cards as they are for standard credit cards?

Student credit cards may eventually have the same rates as regular cards, but they often start with a 0% interest rate to get students started. They are designed to get students using credit cards for the first time in their life, so they offer excellent beginner rates.


How to get a decent student loan with bad credit but has a cosigner to help?

Government student loans. Some companies also offer contracts to those with bad credit, but the interest is much much higher.


What is the best interest rate for student loans?

The best interest rate for student loans are LIBOR + 2.0% or PRIME - 0.50%, with no fees. These loans will usually only be available to those with a great credit rating.


Which banks offer the cheapest student credit cards?

Many banks offer student credit cards. The interest rates and fees of the credit cards generally vary based on the student's credit score. Discover It offers a reasonable credit card for students. Additionally, State Farm also has a reasonable credit card for students.


Are any private student loans still considered government loans?

No, by definition, private student loans are not government student loans. Federal student loans are guaranteed by the US, govt, and the govt sets the interest rates and determine the policies around loan limits and repayment. Private student loans are provided by banks, credit unions and other financial institutions such as Sallie Mae. Because they are not guaranteed, they are much higher risk to the lenders, so they are typically credit based. This means interest rates are variable, and determined by the borrower's credit history. Because most student's haven't had a change to acquire good credit, having a co-signer with good credit almost always improves the interest rate. Banks don't have any collateral for student loans.


Can you co sign a student loan with bad credit?

In the USA, if the student loan is Federal like a Stafford or Perkins loan, then yes you can cosign with bad credit. If the student loan is a private student loan, then no, you must have good credit. Keep in mind, you should never take out private student loans out until you have used up Federal loans, grants, and scholarships. Private student loans have high interest rates and no benefits.


Are the interest rates for student credit cards the same as cards for non students?

No, students are able to find specific credit cards with lower interest rates. These credit cards will also offer incentives related to you, such as: textbook protection, cash back of school purchases.


What kind of auto financing can you get if you am a college student with no credit history?

Any type of financing requires some type of credit, so as a college student with no credit established, you will need to have a co-signer. A co-signer with good credit will get you the best interest rate, but it is up to you to be surepayments are made on time, to ensure you dont damage their credit.


What is the journal entry for interest on credit?

debit interest receivablecredit interest income


What are some bad student credit card offers to avoid?

For the most part, student credit cards are fairly useful for college students, but some of them should be avoided. Travel cards are fairly useful for students, so a student should seek out low interest cards.


Can you recommend a bank that offers a low interest rate for young adults?

Citibank offers a good credit card with low interest rates for students. Capital One is another company to check out for people with no credit history such as a student.


Where can I find a good rate on a student credit card?

All of the major credit card companies have a service called "student credit cards". They are just like regular cards but have a lower spending limit, and lower interest rates. You can check with Visa, Mastercard or American Express.


Who offers the best interest rates on private education loans?

Government guaranteed student loans are not predicated on one's credit; private student loans are. This includes loans for private primary and second schools. The interest rate is based on the credit worthiness of the borrower. If the borrower has sterling credit, he/she will be eligible for the banks lowest rate; applicants with slightly flawed credit will pay more. Applicants with poor credit won't be able to borrow on the program. There are many "private student loan" programs offered by major lenders. The lender determines its rates and lending policies.


How do you obtain another student loan to supplement your Stafford loan?

Consider obtaining a private loan, also known as an alternative student loan. According to http://www.onesimpleloan.com/private_loans.asp, "Compared to federal student loans, private student loans typically have slightly higher interest rates. However, the interest rates on private student loans are substantially lower than conventional credit products such as personal loans, credit cards and even home equity loans."


What kind of private student loans?

Government guaranteed student loans are not predicated on one's credit; private student loans are. The interest rate is based on the credit worthiness of the borrower. If the borrower has sterling credit, he/she will be eligible for the banks lowest rate; applicants with slightly flawed credit will pay more. Applicants with poor credit won't be able to borrow on the program. There are many "private student loan" programs offered by major lenders. The lender determines its rates and lending policies.


Where can one apply for a student credit card?

One can apply for a student credit card when one is legally considered an adult. In the United States, that is eighteen years old. Prior to that, teenagers may use credit cards if their parents are responsible for the purchases and payments on the card.