Posted byon September 20, 2010
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With tuition payments due this month, who couldn’t use a few extra dollars towards books and classes?
You can use this strategy to create a self-managed monthly tuition payment plan or earn some extra interest on money borrowed at 0%!
How It Works
Additional Savings. The great thing is that, in the above example, the savings is not limited to $385. The ability to pay the $10,000 over the term of the Balance Transfer Offer (instead of upfront) allows for savings in interest avoided by not taking a student loan, interest earned while keeping payoff money in a CD or savings account until it’s due or even just the peace of mind of having cash in the bank during a lean few months.
State Tax & Balance Transfer Rules. Your state income tax brackets, 529 deduction limits and balance transfer fees will vary so make sure you investigate them to determine whether this strategy will work for you.
More Cash Savings! You can take this strategy one step further and use your saved money to buy books with the Fidelity 2% Cash Back Credit Card and Ebates, earning even more cash back on purchases you have to make anyway!