PostHeaderIcon Student loans: Debt consolidation vs. Remortgaging Home?


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I have about $80,000-$100,000 in student debt. I have about 5 different lenders for these loans, with interest rates between 4% and 12%. My parents and I are tossing around the idea of remortgaging their house, where I would end up paying their mortgage at a rate of 3.7%. Would this be a better idea than a loan consolidation process? In the long run it seems like it could really hurt my parents because it would leave them stuck with a higher payment even after I have paid off these loans.

One Response to “Student loans: Debt consolidation vs. Remortgaging Home?”

  • bbwfolkie says:

    If you are finished school then I would assume that your parents are over forty and should be doing all they can to focus on preparing for retirement and that does not include remortgaging their home to pay off your student debt. I’m absolutely certain they want to do all they can to help you out financially because that’s a parent’s instinct but I think you’ll find that leaves them short in retirement which may cause you some feelings of guilt and cause a rift in your relationship. Personally I don’t think it’s worth it. Do what you can to consolidate your debt, live within your means and pay it off as soon as possible. You might consider consulting a financial planner or debt advice agency for an expert opinion.

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