Changing Interest Rates
Dear Betsy,
I read in the newspaper that student loan interest rates are going down, but my lender said my loan would not. Should I change lenders?
Sincerely,
Kim
Dear Kim,
Federal Stafford and PLUS Loans that were made between 1998 and 2006 have variable interest rates that can change every year on July 1. This year those rates are dropping by almost half with Stafford Loans in repayment at 4.21% and PLUS Loans at 5.01%. If your loans were made on or after July 1, 2006 or if you have a consolidation loan, the rates will be fixed and not change. Subsidized Stafford Loans made on or after July 1, 2008 will have a fixed rate of 6.0% while Unsubsidized Stafford Loans are fixed at 6.8%.
So, the bottom line is that changing your lender will not impact your interest rate unless you can find one that perhaps offers an interest rate discount for automatic or on-time payment.
Regards,
Betsy
