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Well - those times may be
changing. As reported in a recent article by Sandra Block of
USA Today, this year (2005), maybe even this month, may be good times to
get serious about combining your student loan accounts into one.
Per Block's report, there are
a few reasons. First off, the rates on the student loans are
primarily variable, currently at 3.37%. This July, when rates
are expected to jump to over 5%, will be the highest rate on the
loans since 2002. While it doesn't look like much on the face,
but this hike can translate into thousands of dollars over the life
of almost any loan.
Another reason to combine or
refinance your student loans? Well, there's serious talk now
in Congress about getting rid of fixed-rate student loans, in favor
of variable rate loans, fixed to some type of inflationary index.
Per one of Block's sources, there's a high likelihood of this
happening, but it won't be retroactive (of course!).
So - it's time to look over
your current student loans and decided if it is time for your
portfolio of student loans and determine whether the time is right
for you!
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