Sharp in increase in student loan rates is coming this summer

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January 02, 2006

Sharp in increase in student loan rates is coming this summer

The students who plan to take loans to pay for their education are looking at significantly higher interest rates. The rates will be fixed, not variable as they are today.

New student loan Interest rate will be a fixed rate at 6.8 percent. This is a jump of more than 2 percent from variable interest rate which now is 4.7 percent.
If your parents are nice enough to get in debt to help paying for your college, they will get the new fixed rate of 8.5 percent. Currently student parents are paying 6.1 percent.

Some parents should use home equity, refinancing and taking tax deductible cash-out to pay for their kids education. The 30 year fixed rate mortgage is around 6 percent. Even bad credit mortgage refinance can be better than just obtaining an unsecured student loan. The rate can be found around 7.5, may be 8 percent and it is still tax deductible.

Students will be able to get higher loan amounts: Freshmen will be able to get $3,500 instead of present $2,625, and sophomores will be able to go to $4,500 vs. $3500. During subsequent years, students could borrow $5,500, which is the same it is today. The total limit students may borrow over the course of their undergraduate studies will remain at $23,000.

The borrowing limits for graduate students will increase to $12,000 a year from $10,000. Read more ...

Posted in Student Loans at January 2, 2006 11:13 PM

Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Sharp in increase in student loan rates is coming this summer

January 02, 2006

Sharp in increase in student loan rates is coming this summer

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