Should I take a student loan?

Should I pay a portion of my student loan bill to take advantage of the lower APR? ?

• I have a credit card check which offers a 1.87 APR until September 2009. My student loan interest is on average 5.2% right now. I want to max out my credit card by using the CC check to pay my student loan bill and pay off the balance before the low APR rate expires. I thought I can shave off a few dollars per month from the interest payments - although there is a 3% balance transfer fee. My advance student loan payments will be credited towards the future months' payments so I can pay the credit card company instead of the student loan company. My question is whether the above strategy will save me some money? If not, is there a way I can take advantage of the lower APR on my credit cards to pay my student loans? Thanks!

• Answer:

  OMG this is so wrong. NO NO NO NO NO NO NO. If you read the fine print on all those deals you discover that the rates go up about a gazillion percent after the end date on the deal. That or they slip into the fine print that if you miss a payment by a few hours your interest rate will go up to 31% or some ridiculous amount, and they'll charge you some stupid "maintenance" fee or any other way to get your money. That or they will "split" your monthly payment in a weird way to short your "Paper Check" portion of the bill to pay the regular portion of your credit card rather than the paper check part... the checks are a gimmick, they aren't meant to save you money, they are meant to MAKE them money. Period. Also, be aware of the tax benefits of student loans. You can deduct student loan interest when you do your taxes, not so with the interest on your credit card. Also, should something happen to you and you become disabled or die, student loan balances are forgiven (don't have to pay), if you transfer that money, that benefit would be lost on the money shifted. If you get sick and can't work or any number of other reasons (laid off, wife has baby) you can ask for a forbearance. (period of time you don't have to pay without penalty). Not so with a credit card company. Trust me, you NEVER know what is going to happen tomorrow. One day you may happily going to college classes and studying... and the next day you could be in a hospital bed unconscious and drooling and not a single person knows whats wrong with you.