If the studnet loan rate decreases this July 1st (2008), will that decrease my current Stafford loan rates?
I currently have first 2 years off Stafford Loans consolidated @ 4.75%, but loans from the past 2 years are at 6.8%. If rates drop in July, will that decrease 6.8% rate on unconsolidated Stafford loans? In this case should I wait to consolidate? Answer: No. Holders of your notes are beyond the effects of … No. Holders of your notes are beyond the effects of changes. Answer: For the consolidation loans, the answer is NO. When you … For the consolidation loans, the answer is NO. When you consolidate, you lock in the interest rate so that it is fixed for the remaining life of the loan. For the other two loans, it sounds like they are the new, fixed rate loans. Any Stafford loan disbursed on or after July 1, 2006 no longer has a variable interest rate. The interest rate for Stafford loans disbursed on or after that date is 6.8% fixed for the life of the loan. This means that any interest rate determinations made on July 1 of every year (which will still be calculated because there are
Related Questions
- When a student graduates with additional Stafford loans at the new rate, can they be consolidated into the first consolidated Stafford loan at the low rate?
- If the studnet loan rate decreases this July 1st (2008), will that decrease my current Stafford loan rates?
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