Line of Credit to pay off Student Loans???

[GoldenStache]

I can no longer claim the tax credit for my student loans, your thoughts about taking a line of credit on the house @2% less than the student loans? (It would not be a fixed rate, but plan on paying it off in the next year or so and doubt the rates will jump that much)

I would also be able to get a deduction on the interest for the line of credit..

[Thegoblinchief]

If you already having the HELOC open, go for it. Don't open a brand-new one if it incurs any fees. The fees wouldn't likely pay for the interest savings.

Run the numbers. It's all about the math.

[schimt]

Put all your loans into the debt reduction calculator that i attached and it will quickly show your the cost in interest, make sure to select "No Strategy" in the drop down, to force it to calculate everything assuming you are paying the minimum payments. Also enter the amount of money you can afford to throw at your loans then select different strategies to see how much less you can pay in interest and how much faster you cna pay everything off. Depending on your interest rates, you may decide not to snowball student loans and just pay minimums, to grow your stache faster.  Goodluck!

[superheropunk]

No. Just pay it off as quickly as possible.

[MustachianAccountant]

If you already having the HELOC open, go for it. Don't open a brand-new one if it incurs any fees. The fees wouldn't likely pay for the interest savings.

Run the numbers. It's all about the math.

+1. Though a HELOC will tend to have a higher rate than a Home Equity Loan.
Sounds like lower rate + savings on taxes = works for you, but still pay it down as quickly as possible.
Make sure that you ARE itemizing your deductions, and also there are limits to how much you can deduct for Home Indebitedness that is not taken out to buy or improve your home. Check with your tax guy.