Consolidating student loans

[johannag07]

I have been approved for a couple of consolidation loans but am wondering which would be better in the long run, a variable or fixed interest rate? The variable loan is at 7.32% and the fixed loan rate is at 8.52%. I am not sure which would be better to choose.

[PRICEPLUS]

Me, I would take the fixed loan and know just how much I will owe! A variable rate is too uncertain for me given that the economy could tank and interest rates go through the roof. The downside is that the rates could drop and then you might look to re-fi then but I see rates going up and real soon! Just my .02 cents!

[bigsaver]

Get the FIXED rate. 8% seems high, you could probably do better elsewhere

[Magicman]

Shop around for the best deal that you can get on any loan. And yes, all things considered, the fixed rate is the way to go. With a variable rate you can expect your rate will change every accounting period.

With the market conditions as they are now, many analysts are looking for higher interest rates at some point in the near future. Interest rates right now are relatively low compared to some other times in the past.

Just remember that as soon as you accept the loan, you are being charged interest until you have paid it off. The clock is ticking. Hope this helps.

[parafly]

8% ???

Yikes!! I consolidated almost two years ago when I graduated and locked in at a 2.8% rate.

[JustinH]

8 percent is probably a personal student loan.

My federal loans are like 2 percent, but the bulk of my loans are personal, you are only allowed X amount per year, and I'm way over that.

Anyone know where to reconsolidate some personal student loans?