“That would be unlikely to be a great path because student debt with high interest will still beat most personal loan interest rates,” De Gisi says.The new loan could provide savings by offering a lower interest rate than you’re paying on credit card debts, but you’ll probably pay more on your student debts with this method.This means your student debts cannot be combined with credit cards or other debts under this type of loan. Borrowers can usually only qualify for loans equal to their current student loan payoff amounts.Your new loan will also have other qualities of student debt, like being harder to discharge in bankruptcy.Here’s what you need to know if you’re hoping to combine student loans with other debts.If you’re hoping to consolidate student loans and other debts into the same loan, don’t expect to pay lower interest on the new loan.Can you consolidate student loans and credit card debt?It’s possible, but might not work the way you’d expect.
Because the new loan is still a student loan, the borrower can’t use it to pay off debts besides existing college debts.
Whatever your debt management goals, look at how different refinancing options can help you achieve them.
You probably won’t be able to consolidate student loans and credit card debts together in a cost-effective way, but there could be another debt solution perfect for what you’re trying to accomplish.
This would allow you to replace your existing debts with a single, new loan.
Usually, however, this won’t be a cost-efficient way to manage debts.