My husband has two years left on his private loan. It’s at about $19,000 with a 2.75% interest rate. We could pay it off right now, but he is hesitant. In grad school, the financial aid consultant advised him to stretch his loans out as long as possible. This doesn’t make sense to me. He has been paying for years, so his credit is already built up. We deduct the interest on our taxes, but I don’t think this adds up to enough savings to make financial sense. The federal is at 1% and we could not afford to pay that off with the private. That one we will probably stretch out. Thoughts? Thanks in advance!

You’ll most likely have a mortgage at ~5% or more one day, and it makes better financial sense to direct payments to the place where the rate is the highest. Thus carrying low-interest debt is a GOOD thing.

Can you anyone tell me that how to getting a loan while credit limit is low .