One can argue that student loans are
the worst, and they could be right. Unlike home loans or auto loans which are
usually availed by well-settled and financially strong individuals, student
loans are to be repaid by young professionals who have just started their
carrier. Needless to say, they are often live on a shoe-string budget and have
to put a cap on all kinds of expenses to pay off the student loan debt. So, the
question is- can a personal loan be
used for paying it off?
It makes sense, right? Since a personal
loan can be used for any “personal” reason, why not repaying student loan debt?
In most cases, you are right in believing the same. However, it’s important
look at the idea from all perspectives.
The Bird’s-Eye View
The most important reason why you
would want to take a personal loan to pay off student loan debt is to enjoy a
better interest rate. If that’s not the case, you don’t have much to earn from
the deal.
You want to reduce your EMIs and
hence the financial pressure. Replacing a high-interest loan with a
low-interest one is one way to go. However, if you are not able to get a
personal loan with a lower interest rate then there is no point in applying for
it even. You also need to see if the interest rate difference is enough, to say
the least.
