Student borrowers who still have federal Stafford loans with variable interest rates (those issued before July 2006) just got good news.
Your interest rate -- one rate applies if you start payments during your six-month grace period; a slightly higher one applies if you start repayment thereafter -- will go down by several percentage points as of July 2008 and will stay at that level until July 2009.
| Row 0 - Cell 0 | Intro Into Real Life |
| Row 1 - Cell 0 | Advice for Starting Out |
| Row 2 - Cell 0 | Career Paths |
You can lock in the new rate by waiting until after July 1 and consolidating your loans into a single loan with a fixed rate. There is one catch, however.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Many private lenders, including those companies that until recently financed the lion's share of consolidated loans, have stopped offering them, mostly due to recent legislation that made the deals less profitable. Mark Kantrowitz, of FinAid.org, predicts that all private lenders will ultimately abandon this business.
Solution? Consolidate through the Federal Direct Loan Program, which offers the same federally mandated terms on consolidations as private lenders do. Be aware that you must begin repayment within 60 days of the consolidated loan being processed. So to avoid losing part of your grace period, wait until three months after graduation to apply.
ALSO SEE: Paying for College
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff NoiseMarkets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Amtrak Joins Prime Day With Deals on Fares — But You’ll Have to Act FastPrime members can score 20% off midweek fares — what travelers should know before booking.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know, Plus the Best Deals on Apple, Samsung and MoreAmazon Prime Amazon Prime Day is four days this year. Here are the key details you need to know, plus some of our favorite deals to shop during the sale.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
