Ask Terry Questions Student Loan

Student Loan

By Terry Savage on April 16, 2022 | College Savings / Student Loans

My daughter has four student loans that are all based on variable interest rates. With interest rates increasing, is now the time to lock in a fixed rate and, if so, what are 3 – 5 top reputable student loan companies that she should consider exploring?

Thanks!

Terry Says

Wait until we get closer to September 1st because there could be some loan forgiveness, and no interest is being accrued right now. But keep saving though not paying on those loans, because you’ll want to apply your savings to principal just before interest starts accruing in September (or maybe later as they’ll likely postpone again, since it’s so close to an election!)

Then the next question is whether these are private or Federal student loans. Federal loans carry a fixed rate for the life of the loan. So I’m guessing private loans. And private lenders weren’t very accommodating about lowering rates even when rates were lower. They certainly have you over the barrel — and won’t be helpful now or in the future.

Recent College Savings / Student Loans Questions

money

ASK TERRY

a personal
finance question