inherited annunity withdraw to pay student loan

Submitted by Anonymous (not verified) on Tue, 06/08/2010 - 01:42
Forums

My father passed away 2 years ago. I inherited a $77,000 Veteran Administration Annunity. I am 55 years old and have $32,000 in student loans having graduated in 2006. Should I bit the bullet, withdraw the funds from the annunity, pay the penalities and pay off the student loans? The payment are causing a serious cash flow problem.

Hi dollabills,

Why would you want to use money coming from Veteran Administration? If you face problem in making the loan payments, you can go for debt consolidation.

Debt consolidation is when all your loans are consolidated into one so that you can make a single monthly payment. In consolidation, you need to take out a single low interest loan, to make the monthly payment.

If you can't negotiate consolidation with your lenders, you can take help from a debt consolidation company, who will negotiate on your behalf. They will first help you with budgeting so that you can pay off your loans. If you can't seem to make payments according to the budgeting, then they will enroll you into the consolidation program.

This program will get listed on your credit report, but will not hurt your score. It will get removed once you finish making the payments.

Thanks,

Aaron

Tue, 06/08/2010 - 05:59 Permalink