Did you or anybody you know take out a federal student loan before July 2006?
If so, you’ll want to discover a great new way to cut your lending costs that many lenders are unlikely to divulge.
The interest rate on Stafford loans, which were borrowed before July 2006, will be dropping significantly if you haven’t already consolidated this debt. If you consolidate these old variable loans beginning next month, you’ll capture a new fixed interest rate of 3.625%.
How good a deal is that? In comparison, the more recent federal Stafford loans impose a fixed rate of 6.8%.
As you can imagine, lenders would rather that borrowers remain unaware of the rate drop. You can learn all about this latest development, however, at the Higher Ed Watch blog, which belongs to the New America Foundation. These are the folks who continue to shed light on slimy college lending practices.