Personal Finance Tip - Should I Use Student Loans to Pay Off Debt?

So you're attending college to try to build yourThe problem comes when you finish school and you
career, but you find that your debts are distractinghave to begin making payments on your student
you from your studies. You might consider using yourloans. Although you may have saved credit card
student loans to pay for your debt... but is this reallyfinance charges by paying your debts with your
a good idea?student loans, your loans have been quietly accruing
When you sign a student loan agreement, you areinterest while you were in school. By the time you
telling your lender that you will use the loan to payhave to begin making student loan payments, you will
for expenses directly related to your education. Thishave incurred more in interest charges than if you
can include living expenses, and personal debts arehad simply paid off your debts through part time or
arguably a part of these expenses. Your lender wouldfull time income.
likely not be pleased to learn that you used yourIf possible, it's a good idea to avoid using student
student loans to make credit card payments, but ifloans to pay off debt. You'll end up paying much
you incurred credit card debt as a result of being inmore in the long run - the debts you could have paid
school - say, you had to reduce your work hours tooff in a year or two will hang around for a decade or
attend classes - it would be possible to argue thatmore, building interest the entire time.
your debts were related to your education.