k wrote:
] ] But a proposal in Congress could shut down the party. The
] ] measure would end the fixed-rate option, making all
] ] federal student loans issued after July 2006 subject to
] ] variable rates. Repayments would then rise and fall each
] ] year in sync with interest rates.
]
] !!!
]
] [ Mixed feelings... it's not impossible that variable rates
] with a reasonable cap would be cheaper for me than my fixed
] consolidation loan, which is somewhere near 4.5 (not 3). I
] support the concept of getting the money to kids up front,
] preferably in the form of grants so that they have less loans
] in the first place. Subsidizing large loans seems like a less
] efficient use of money than just giving it to me up front, but
] i'm not a financial guru, by a far sight. I may have to look
] into this further, but my initial reasoning on this is
] trending positibve... -k]

Well, let me put it this way-- my current private loan rate is somewhere around five, even with still low rates and my parents are paying some eleven percent on my undergrad loans. And rates are going up a lot.

RE: CNN.com - Will fixed-rate student loan consolidation end? - Jun 7, 2004