1 Comment

  1. Elizabeth
    March 1, 2016 @ 4:03 pm

    If the car loan and the student loans are your only debt, you are much better off leaving these separate from each other. However, if you have not already done so, you should go ahead and consolidate your student loans (but keep separate from the car loan). Doing so allows you to lock in to a low interest rate, and you do not lose any of the advantages of your student loans. For example, if some or all of your loans were subsidized, that portion of your consolidated student loan balance will remain subsidized.Student loans carry possible tax advantages the interest can be tax deductible and they also can be eligible for deferment and extended terms if you lose your job at any point in the future or you fall on hard financial times. If you were to consolidate your student loans with your auto loan, you would lose those advantages.Pay off the car loan as soon as possible, but you can take more time with the student loans. It’s probably the least expensive debt you have. Once you earn a higher salary and have some savings set aside and have paid off your car loan, then you can get to work paying off your student loans.

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