Should I take try and get a bank loan to pay off my student loan?

Question by steven: Should I take try and get a bank loan to pay off my student loan?
My student loan is variable interest and sits at 12.25% right now. I owe 11,100$ on it. Would it be better for me to try and get a bank loan to pay it off so that I’m dealing with the bank instead of the Sally Mae loan?

Best answer:

Answer by bluebell

It would be good for you to find a lower rate of interest.

Find out from banks and local credit unions what their rate of interest is for a personal loan. When you have found the best rate, ask there about the possibility of a loan. If that is credit union, you will need to join up as a member and start saving there, ideally every week. After about 10 weeks you may apply for a loan, and by then you will have created a “history” with them for reliability, and getting the loan is virtually assured. You need to repay it (ideally weekly) over 5 years. A loan this size would cost approx. $ 65 weekly in my credit union over 5 years, or $ 95 weekly over 3 years.

Add your own answer in the comments!