I currently have a private, unsubsidized student loan for 16,000 which has a variable interest rate. The rate is currently 8.5%, which I think is very high. I looked up the definition of variable interest rates and all it says is that the rate changes when index rates change. Considering the fact that interest rates are as low as they'll get and are only going up...does this mean I can expect my interest rate to climb even HIGHER? If so, how high? Thanks.|||Depends on the index. Some use LIBOR and some use prime or other indexes. Check the wording. There is a cap on how fast and far it can rise|||It's usually based on something like the prime rate, the difference between the prime rate and your rate is usually based on your credit score.|||yes, interest rates will ALWAYS go up. This is why private student loans are evil... in a few years your payments are going to be a FORTUNE!
Good luck with that...
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