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Student Loan interest rate question

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    Student Loan interest rate question

    Hi everybody, I just heard about Stafford student loan percentages coming down. But I'm not sure if this affects me or not (but I sure hope so!) When I signed on for loans in August of 2006 the percent was 6.8 which had just gone up and I thought they were a bit high compared to the old percent. I've read a little about it and it's very confusing so I'm not sure if my interest rate has gone down. So does anyone know anything or have a clearer explanation for the reduced rates than the websites do? BTW, I was an undergraduate that went to a university from August 2006 to May of 09 and borrowed subsidized loans. Thanks for any help on this as I'll have to start paying in January.

    #2
    Ok, so I just read a clearer explanation. Apparently the student loans I took out from 06 to 08 will remain 6.8. But the loan I took from 08 to 09 is at 6.0. Is this correct? It doesn't really seem fair. Also do I pay two different loans, one at 6.8 and one at 6.0?

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      #3
      I think when my husband had several loans they were serviced by Sallie Mae and we still made one payment, but some of the payment went to each loan. I think. It's been awhile.
      My other blog is Your Organized Friend.

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        #4
        Originally posted by creditcardfree View Post
        I think when my husband had several loans they were serviced by Sallie Mae and we still made one payment, but some of the payment went to each loan. I think. It's been awhile.
        If they're all with Sallie Mae, then this is certainly the case. Plus, the percentages come down pretty quickly with their standard discounts. I lucked out with when I finished because my loans are a combination of under 2% and 4.7%, with another small percentage about to be shaved off the 4.7%

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          #5
          Originally posted by nmboone View Post
          Ok, so I just read a clearer explanation. Apparently the student loans I took out from 06 to 08 will remain 6.8. But the loan I took from 08 to 09 is at 6.0. Is this correct? It doesn't really seem fair. Also do I pay two different loans, one at 6.8 and one at 6.0?
          Actually this is correct and very common. When you sign the docs, you commit yourself to those interest payment terms.

          Most students have loans of varying interest rates.

          You do not pay separate loans however, at least not with the same loaning authority.

          After graduation, a common tendency is for you to get mail offers of student loan "consolidation." Sometimes it can be in your best interest to consolidate, sometimes not. Read over the terms of any documents and work out the numbers... always!

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            #6
            Thanks guys for the answers! I appreciate the help with the confusingness.

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