What is the recent hype about student loan interest going up in the summer?
362302
Thanks to the recent Deficit Reduction Act, a LOT will be changing with Federal Student Aid.  Student Loan interest rates tend to change every year, but this year its different because not only are the rates changing, they are becoming fixed (so when they do change, they change "for good").\n\nCurrently Stafford Loan interest rates are reset every July.  They were capped at 8.25% but for the past 3 years have been much lower than that cap (in some years, rates were lower than 3%).  For the 2005-2006 academic year, these interest rates are as follows:\n\nFor borrowers in school or in their grace period : 4.7% \nFor borrowers in repayment: 5.3%\n\nBeginning July 1, 2006, Stafford loan rates will become FIXED at 6.8%.  If you want to consolidate to "lock in" today's 4.7% (or 5.3% if you are already in repayment) do it before July 1st.  You can save yourself a lot of money by knocking 2% off your rate.\n\nPLUS loan interest rates will also become fixed.  Currently they are variable and, for 2005-2006, are set at 6.1%.  Beginning July 1, they will become fixed at 8.5%, though most lenders offer additional benefits which could lower this rate to 7.25% or more. PLUS loans can be consolidated, too, (with each other or with any loans borrowed by the same person) so anyone with a PLUS might want to do so to lock in today's 6.1% rate.\n\nPerkins loan rates won't change.  They've been fixed at 5% for ages.
1016557
I think they are all pretty much offering a rate of 3.5 if you look online. I suggest you consolidate or refinance before June 1st. Here in CT the rates are about to go up to 7%
403886
Time to think of other areas to consider...If you can afford it! It is a buyers market right now in the south east and soon the bubble will burst. So now is the best time to buy!
253596
its around 4-5%. i have a student loan and my interest rate is 4.6%
114523
A moral approach to graduate tuition increase. Fair, just transition to new\ntuition policy should exist for current students
996821
Yes prices are outragous, especially with families just making it. or with more than one child going to college.\n\nEventually states will be soo strapted for cash that there will be less state funds for college, less people going to college and more people being forced to take loans.\n\nSome will be completely shut out. If anything we should be making it more affordable to compete with others on a global scale.
1020632
false\nyou pay interest big time with a mortgage because it's over a long period of time
1026655
usually you can get financed, you'll just pay a MUCH higher interest rate.
868672
raise interest rates.
690336
Interest rate has been going up regardless whether you are using libor or other interest benchmarks.  At this point even if you refinance you won't get that good a rate, plus the penalty you will have to pay.  Most lenders will allow you to extend your mortgage amortization period and keep your monthly payment the same.  Talk to your lender and see if it is an option.  My other advise is to make extra payment whenever you can.  Good luck.
696816
I say go for it. I did when I was at school. I had excess student loan money after all my tuition had been paid. Made an excellent return on investment. as to the poster who says you should never borrow to invest...that is just madness...EVERY business borrows to invest (when a company issues bonds there are borrowing money from investors at a lower interest rate and investing it at a higher interest rate)and even the government does it i.e. Treasury bills are used to fund government expenditure. as a word of caution though don't invest in stocks. the stock market is not predictable. you are better off with a CD/Treasury bill or a municipal bond
553248
Hello!\n\nMy name is Earl Catlin a financial adviser for 4.0 student loans.  On July 1st student loan interest rates will be rising to 6.8%.  It is best that you consolidate now at a lower interest rate that will also put you at lower monthly payments. For more information visit www.40studentloans.com.  If you decide to apply use my name as your financial advisor and you will recieve a free iPod if approved.\n\nThanks,\n\nEarl Catlin
918794
Hello Melissa,\n\nAs the other responders have said, YES, it makes complete sense fo ryou to consolidate!\n\nEspecially being that you have such a large amount of student loan debt...\n\nThe government offers this program to students as a way to teach people a more effective way to manage your debt.. By combining all of the loans into one loan it simplifies your finances..\n\nThink about it, at the end of each month, do you wan tto be sending a9-10 seperate payments to 9-10 seperate lenders, or do you wnat to make one payemtn to one lender???\n\nImagine the checks, stamps, and envelopes you would use in just 1 year if you stayed the way you are..\n\nNot only that but look at the more important issue..\n\nAll loans taken out before July 1st 2006 are variable rates.. In the last few years interest rates have been on the rise... If you dont consolidate into a fixed rate, your rates will rise on all of your loans..\n\nTHIS MEANS YOUR PAYEMTNS RISE AS WELL!!!\n\nBy consolidating you get what is called a weighted average interest rate.. The take an average of your interest rate based on the amount of each loan... More importantly the interest rate is FIXED on the new consolidation loan..\n\nSo, it make s complete sense to consolidate your student loans!!\n\nRemember, the government offers this program FREE OF CHARGE!!!!\n\nMy name is Jason Fry, i am a financial advisor for Student Aid Lending.. We are licensed nationwide and are a title IV lender administered by the Department of Education..\n\nTake a look at my personal yahoo 360 page.. You can find alot of helpful information as well as a direct link to our website...\n\nhttp://360.yahoo.com/my_profile-HlUDUhMib7M9Wlj6o6L2SfGcEYtkt9xsaQ--?cq=1\n\nFeel free to call or email me at any time with questions, or curiousities..\n\nI will take time to answer any and all questions!!\n\nGood Luck!\n\nJason Fry\nStudent Aid Lending\n1-800-964-0642 ext. 114\njasonf@studentaidlending.com
1129780
Um... I'm just attending a state university so it's a bit easier on the wallet.  As for student loans, I don't need it.  I finance my education through credit cards.  Thank goodness for 0% Introductory APR offers for one year!  God Bless America!
581029
i would think there would be a few more interest rate increases. The housing market is most likely to cool in the coming months.
38653
After loan payments and insurance, probrably just enough to make all that school and internship pressure worth it. But I think it is becoming closer and closer to a draw, or at least a really long term investment.
119669
yes the rates now in repayment 5.3 for staford loans and for plus loans 6.1 after june 30 the rates will be 6.8 for staford and 8.5 for plus but the rates will be fixed condo with the dept. of ed. what people dont know all companys are the same the gov. regulates them but if you go with the doe you can condo later with aney one but if with a company you will be a single lender.