Should I retain the student loan debt for the tax deduction?
Date: Thu, 09/05/2013 - 05:15
I have a private student loan at an interest rate of 6:5%. The loan amount is $80,000. The monthly payment amount is $1750. I have to make 60 payments to get rid of this debt. I have a wealthy uncle. He is currently living in MONTEVALLO, Alabama. He is ready to give a loan at 4 percent interest rate. I will have to make payments for nearly 54 months. I will save nearly $8000 on interest alone. Should I take out a loan from my uncle? Should I retain the student loan debt and take advantage of the tax deduction?
Take the loan from your uncle
Take the loan from your uncle...the savings will be greater on the interest savings than the tax deduction.
