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I have around 90k in unused credit lines through 4-5 different credit cards...is there a way to do balance transfers for 0% for a 12-18 months and use the check to pay these balances off and then just pay card within promotional period?

Yes, that can be done. You can usually have the credit card deposit money directly in your bank account, which you can then use to pay the student loan off/down. Or you can have the credit card make a payment directly to the student loan.

However, you need to calculate what the BT fees will cost, and how that would compare to the amount of interest you would have paid if you had just paid the same payment to the loan instead of doing the BT. Let's say that you felt you could pay \$425/month toward a 12 month 0% credit card offer, and in the fine print, it says that there is a 4% BT fee. So, you have the credit card company pay off loan #2 (\$4,829.22 @ 6.8%, plus a little more interest - we'll say that you have them pay \$4900 to the student loan company). Add in the 4% BT fee (\$196), and you owe the credit card company \$5,096. So, if you are paying it off in 12 payments, you would make 11 payments of \$425.67 and your last payment would be \$425.63 - for a total of \$5096.

If instead, you just started sending the \$424.67/month toward the student loan, you would make 11 payments of \$424.67 and the last payment would only need to be \$410.54, for a total of \$5,081.91. That's \$14.09 less than the BT fee cost you.

So, you need to look at all the costs of the different options you have, and not just assume that because the interest rate is 0% that you will save money by doing a BT.

I assume banks/credit unions would not be interested in giving me a fixed rate loan on student loans?

If they were interested, it would likely only be at a rate higher than your current rate, which would end up costing you more money.

AJ

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