So I just needed to double check my process here. I feel like I'm missing something, but I'm not sure, so on to the thought I had. I currently have a car loan amounting to roughly ~$10,000 at 6% interest. Not the best interest rate, I know, but it was my first actual loan ever. Anyway, I'm currently attending college (and working, hence the car loan), and this fall I have the option of taking out ~$2,500 in subsidized federal student loans at 2% interest with payments and interest accumulation deferred for 2.5 years (when I graduate).
My question is this: would it be a decent idea to take that 2.5k and place it directly onto the principal for my car loan, effectively exchanging 2.5k in 6% car loan for 2.5k in 2% deferred student loans? I'm not seeing much of a downside here, considering the car is an education expense, and I'd effectively be saving quite a bit in interest over time with this option.
Submitted June 22, 2018 at 08:25AM by Saracien https://ift.tt/2tnnowQ
