The interest rates for our CCB loans are very favorable, at only 0.13 percent. Compared with other loans such as mortgage loans and mortgages, the cost differs considerably. Solving their CCB loans through a sms loan or other credit is therefore not worth it.
Switching student loans to mortgages?
However, a switch to a mortgage may be an alternative. If you find yourself in a situation where the student debt feels very burdensome right now and you have to quickly lower your monthly costs, there are alternatives. Switching to a mortgage-free mortgage or a mortgage with a long repayment period can reduce the cost of borrowing in the short term. However, the mortgage free mortgage gets a higher total cost. Since you do not repay / pay off the mortgage, a fixed interest rate on that loan / month ticks.
Redeem the CCB loan
If you have saved money, it could be an alternative to use them to pay off the student debt. Not having any debts at all like study debts can feel good. One tip is to consider the advantages and disadvantages of redeeming the CCB loan. Maybe you can get help from your private banker.
Questions you can ask yourself in this selection are:
- Is it possible to get more value for the savings in some other way?
- How big is the return if you invest the money in stocks and funds instead?
- Do you need the savings to start capital when you go into the adult world?
CCB is very flexible with refunds. For example, if you are unemployed or have compensation from the insurance fund, you can pay less on the loan for a period because you have lower income. There is also the possibility to postpone a payment per year.
An important listing. The CCB loans have a lag in interest rates. They are calculated on the national mortgage rate three years back in time. In order to avoid unpredictability that is assumed to hit hard on people who are just establishing themselves in the business world, the interest rate is calculated three years back in time. Mortgages and CCB loans are thus calculated in different ways and can therefore differ considerably.
Information on CCB student debt
Most have student debt to the Central Student Aid Committee CCB. According to statistics from the CCB website, there are just over 1.5 million people who have study debts totaling USD 217 billion. At year-end, the average debt borrowers have in Sweden is approximately USD 138,000.
Debt has increased in recent years and this is mainly due to increases in the loan component of the study funding. The debt is expected to remain in the coming years. In the big cities, most loans are higher and this is because the level of education is highest in these areas. On January 1, 2018, 6.4 per cent or 85,222 persons had payment remarks because of their student loans with the chancellor. This is a decrease from previous years.
The interest rate on the student loan is record low
The interest rate on student loans has been lowered for nine consecutive years and is today at a record low of 0.13 percent. This means that more people can afford to repay more. People with the newer student loan may pay lower annual amounts. People with the older student loan will receive a shorter repayment period. However, the assessment is that the interest rate will be raised next year. According to CCB press secretary Kevin Elfs, the interest rate on student loans in 2020 will rise to 0.37 percent and 2021 to 0.72. The interest rate will remain at a historically low level for a few years despite the trend pointing upwards.