How to Make Money Trading Student Loan Debt

Student loan debt is one of those rare creatures that, once you accept the loan, it's yours for life, or at least for the life of the loan. Student loans are guaranteed by the federal government and aren't included in bankruptcy or settlement proceedings. Some people attempt a settlement offer for student loans, but the best most can hope for is avoiding long-term interest payments by paying in full. It doesn't seem like much of a savings; however, there is a way to trade student loan debt and make money (in saved costs.)

Difficulty: Moderate


Things You'll Need:
Two or three 0-percent interest credit cards
Complete several credit card offers for new students while in school. Do not use the cards for anything other than to build a credit history. Once you graduate, you have 6 months before you start to repay your student loans. The idea is to get a good job so you can repay them. Your goal is to create a repayment schedule that incorporates the credit cards.
Contact the first credit card company and request a 0-percent introductory offer for transfer balances and move your student loan debt onto that credit card. Request the longest amount of time you can receive the 0-percent introductory rate.
Follow your payment schedule for the student loans applied to the credit card balance. Because your interest rate is zero, you will by paying down the principle amount and saving money. Money saved is money earned.
Contact the second credit card and transfer the balance over to the second card 1 month before the end of your introductory rate period on the first card. Continue to make payments directly to the principle.
Move the balance to a third card that you've negotiated a 0-percent introductory interest rate on. Pay down the principle amount. You can repeat these steps back to the original card and continue to move the balance until the debt has been repaid, and you have made money by not paying interest.

Tips & Warnings:-

The credit cards you get cannot be used for entertainment or living expenses. You must apply payments in a regular scheduled time to remain in good standing on the cards and to avoid interests and penalties, which can wipe out any savings. An automated payment scheduled deducted from your bank account can keep your payments on time, and your interest rate safe.

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