- Centurion Member
- Posts: 235
- Joined: Tue Mar 12, 2013 10:10 pm
- Location: United States
In addition to the excellent points above, you wouldn't just be able to obtain the loan and pay the balance when your 0% period expired. You can only take the money to pay expenses you're currently incurring, not what you've already incurred. So, over your first 15 months, you charge $25K ($5K x 5 3-month sessions) and then take the loan. They'll disburse you $5K for your next semester, then another $5K each subsequent semester, leaving you to either pay the $5K towards your balance and pay the new $5K on the cards, or make payments on the $25K (minus whatever payments you made in the meantime) and use the $5K towards your continuing expenses.
If you take the loans as they come and pay $250 on them every month OR take only $4250 each semester and pay the other $750 yourself out of that money you have, you won't hit the wall of "pay the CC bill or pay for tuition." Plus, yes, you can deduct the interest from the student loans but not the CC so long as you're paying, so it might make sense to take the full $5K up front, make monthly payments, then write the interest off, giving you, actually, slightly more than $250/month to pay towards the loans. If you pay that much, on the balance you've described, you'll actually make a dent in the principal, so you'll come out with less than $45K owed (I know, my loans are almost exactly that much).
Target Visa $1.5K