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financiallyproactive2015

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Home Equity Loan to pay for Student Loan for Tax Reasons?
We aren't able to claim my student loans on our taxes due to income limits. Would it be smarter to take out a Home Equity Loan so we can at least claim the interest on that? I owe $28,000 in Student Loans and we have about $80,000 in equity on our house.

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It wouldn't be a horrible decision. On one hand, not to sound morbid but federal student loans are forgiven on your death; whereas a home equity loan is not.  On the other hand, not that you will face this situation but a home equity loan is dischargable in bankruptcy and a student loan is not. So with all things being equal I would refi into a home equity as long as the interest rate is lower.

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