Student Loan Interest

Is your student loan interest rate the best?

Consider if you have a fixed rate or variable similar to when you are buying a house or refinancing. Obviously variable is more of a risk, however for the security of a fixed rate the lender will usually charge you a premium.

Check out the overall interest rate market and keep an eye on the financial papers for the latest.

Is it better for you to pay more now or to extend the life of your student loan and pay less today?

Paying less today usually means paying more tomorrow in terms of debt so don't forget this. However, there is something to be said for a manageable monthly bill that you can meet without too much trouble. Also consider the opportunity cost of the money that you are spending on your student loan bill that you could be spending else where to give you a better rate of return (and that doesn't include restaurant bills and handbags - you know who you are!)

If you have decided that student loan consolidation is not for you then good luck with your route of payment. Otherwise if you think that student loan consolidation can make your life easier and give better value then consider these final points.

- Ask upfront about any fees, charges, fines, fees etc that the student loan consolidation firm has. Ask, ask and ask. All student loan consolidation organizations have different terms for it so get around the lingo to get the answers.

- Think interest rates. Remember the market cannot be fought. The only way you can be sure of your monthly rates is to "fix", but is this really the best deal?

- When you do get your student debt consolidation sorted don't rush out and rack up a new set of credit cards! Many people do this with their new (too short lived) financial freedom. Debt (bad debt anyway) sucks and should be avoided like the plague.

Tell us what you think now….

Comments to date: 1. This is page 1 of 1.

ssssffffffff   iran	Posted at 1:58am on Friday, June 8th, 2007
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Student Loan Interest