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Okay, so I am a bit lazy to crunch the numbers but here goes... are student loans similar to mortgage loans, where the major part of interest is paid in the first half of the term? If so, I have a question... My wife has about 200k worth of student loans at 6.8% interest rate... I recently receive an offer of 50k worth of FIXED 2.99% (lifetime terms) balance transfers... considering that the max student loan deduction (not credit) is $2500 (or something like that)...
1) Is it advantageous to take the 50k balance transfer option to pay part of the higher interest loans...
2) at what point would I see net savings if doing this? 7 year out? 5 years?
3) What about the $2500 deduction? At what point is the deduction less than the maximum, if I were to take the 50k balance transfer? 5 years out? Versus doing the 200k instead...
To me it sees much more advantageous to take the 50k balance transfer considering the student loan interest is only a deduction and not a credit...