can you move a student loan debt onto a 0% credit card?

winkle1

is this possible? if yes, how do you do it?

CLAPTON

why would you want to do this...a student loan is a low cost long(ish) term loan while a 0% credit card usually only lasts 6 months, in addition you may only get a relatively small credit limit.

however since you asked...i've no specific knowledge of student loans but a general mechanism for paying off any loan is as follows:

get a EGG MONEY card (must be EGG MONEY and not EGG green)

start with zero in your egg money card
get the 0% cc of your choice and do a balance transfer for the maximum allowed (lets say £4000) between the two cards

now on 0% balance card you have -£4,000 and on your egg card you have £4,000
ask egg to transfor your £4,000 to your bank account (a standard procedure)
use your bank balance to pay off your loan

snoozer

Is this wise? If you lost your job or your income was drastically cut you would not have to continue to pay off student loan (I think this is correct) until your situation had recovered but CC companies would still want payment.

kathfisch

snoozer wrote:

Is this wise? If you lost your job or your income was drastically cut you would not have to continue to pay off student loan (I think this is correct) until your situation had recovered but CC companies would still want payment.

Yep, student loan payments are deducted at source (like tax) and only when you earn over a certain amount (around £15K i think but don't quote me!). If you lose your job, take a break, study more etc you will not be paying this back whereas a 0% credit card would demand payment no matter what. An 0% deals are only for max 9 months anyway at the mo.

Stick with paying it the normal way and any extra that you would like to pay (as if overpayments on a card) just put them in a 5% savings account and you'll be better off!

winkle1

i am on the old scheme so I have deferred it every year.

it just pees me off thinking it will take 5 years to clear it.

Bloke_with_a_simple_life

Winkle... if you want to reapy it sooner - can you not make an arrangement directly with the Student Loan Company - e.g. a limp repayment?

I would be thankful that the loan is so "unobtrusive" - it's low interest rate... low-ish repayments... collected by them easily - and doesn't appear on your credit file.. deferrals if you don't earn alot! OK... may not be ideal that you need one... but an easier loan to deal with than many others!


Don't get annoyed with it! Get to love it!