Student Loan changes in the works

Rates on federal student loans have fallen to around 3 percent — a 35-year low. Even better, students can lock in those rates, potentially saving thousands of dollars by ensuring their payments won't increase even if interest rates do.

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.

This may affect oldest daughter and will most certainly affect Mookie.

Posted by Ted at June 7, 2004 01:02 PM | TrackBack