Quote:
Originally Posted by GGG
Tax wise you should keep the student loan as the interest is deductable. So the interest on the new loan would have to be 25%ish less then the interest on the student loan
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I hear that a lot, but it's a non-refundable credit. In other words you have to be paying a lot of interest before it's much of a factor. The credit amount here is 17% on the interest paid....about $85 for every $500.
Sure it's better to get $85 than to not get it, but it also not enough to necessarily warrant keeping them either...especially if you can consolidate with a better interest rate.