<prompt> Human: I have a student loan with a current balance of around 10,500 with a credit union attached to an employer of one of my family members. The company the credit union is attached to is closing down and a different credit union is now taking over all of the current ones accounts. The current credit union contacted us and said the new union has no way to process student loans or handle them and so they want to re-write my loan as a personal loan and as an incentive are offering to reduce the interest from 9 down to 5 percent. It sounds good on its face but my questions are this: 1. Am I losing out by not being able to deduct interest payments on my taxes im pretty sure this can only be done with student loans. 2. What other options do they have if I refuse? The credit union handling this is basically two employees in a tiny office so Im not entirely sure of their competence.  <response>: The reduction in interest rates should more than make up for the lack of deductibility.Personal loans are much less nasty overall than student loans e.g. you can actually gey rid of them in a bankruptcyI would take them up on that offer, fast, before they realize what a good deal they have offered you! 