First of all let me say that my financial future is looking pretty scary as of right now. I just started graduate school in August and I came in with about 63k in debt from undergrad. Fortunately my graduate assistantship pays my tuition and I get a small stipend which covers rent and that's about it. However the GA position and school work take up most of my time and working a side job isn't really "in the cards" as they say, unless I wanted to be a emaciated zombie who never sleeps - which I already am sometimes. Anyhow, the point is I'm still taking out loans to live on. Prior to coming in I had about 2500$ in credit card debt. Does it make sense to pay that off with student loans which are at a considerably lower interest rate? Since my income IS student loans, that credit card debt is just going to sit there at least until I graduate. Another factor is that my credit score (by some miracle) is actually pretty decent. From my experience credit card debt seems to have a much bigger effect on my score than the student loan debt. I'm worried if I let that 2500$ compound and sit there that my credit score will go down. Anyways, its a pick your poison situation. Curious what you all think!

  • I certainly would pay the minimum but the point is anything I pay would be coming from student loan money so I'm just wondering if taking out a little more loan money to pay off the debt completely is the best way to go about this in my situation. I mean I am essentially looking to take a small pile with high interest and add it to a very large pile with low interest.
    – ryane24
    Commented Nov 20, 2015 at 14:03

1 Answer 1


Credit cards have required monthly minimum payments. Failure to make the payments will have a negative effect on your credit score very quickly. Student debt is generally non-payable while you are a student (and for a short time afterwards), hence will not effect your credit record until it becomes due and payable.

Get rid of the credit card debt. You're nuts to keep it.

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