I wish they'd stop raising the interest rate!

[Free4Life11]

I know they want to curb inflation, but every time I get my quarterly student loan interest statement the rate has gone up! I just got it yesterday and now it's up to 10% - almost as bad as a credit card. I know it doesn't sound like much but when you're in school and trying to pay off the interest as it accrues, even 10% is a lot. I wish student loans would be exempt from that.

On a positive note, I AM making good progress on paying one loan off and paying the interest on all the others.

 

[Tanuki]

That's the risk you took when you didn't get a Fixed interest rate on your loan. They can raise the rates on you later if whatever index they use has a higher interest rate. A lot of people thought they never would go up again when they were at an all time historic low.

 

[Free4Life11]

I know, it's just pretty hard to get a fixed rate student loan. I did a lot of searching and didn't find any reputable banks offering fixed rate loans. They were all variable.

 

[AllyandJack]

Have you tried to consolidate with Sallie Mae? As soon as I graduated, I consolidated both my federal and private loans with them at a fixed rate. They are separate, so there are still 2 payments a month, but both are consolidated and fixed.

Check them out. They've been great to work with. DH and I ran into a bad spot when he took a voluntary lay-off from work (long story, but it involved him being sent to Chicago for over a year coming home every 3 weeks for 2 days at a time). They put me into a lower payment option without missing a beat or causing any problems. Then, when the situation was fixed, I went back to my old plan with one simple phone call.

You should see if they can do anything for you.

Good luck! My loans will be paid off at the same time as my mortgage....when I'm old and retired.

 

[joksten2000]

Your pain is my gain. Finally starting to make some income on my cd's You have lots of earning potential while some of us have none. Did anyone think about us when the interest rates were at 1%. Tough on a fixed income. 4 more raises and we should be in 7th heaven

 

[Cindyluwho]

Gads! I can't believe I'm going to post this and show my true age...but here goes.

When I fist got out of college I worked at a Savings & Loan (25 years ago...MOAN). There were still home loans on the books at 18 & 20%. That's right 20% home loans. I'm now in Real Estate and here new agents tell their buyers that interest rates will never go up that high again. Of course they will! I would never counsel anyone to take on an adjustable rate mortgage or any kind of loan that's adjustable. It's just too risky! OMG, I sound like an old woman with this talk of the "old days".

 

[Free4Life11]

Your pain is my gain. Finally starting to make some income on my cd's You have lots of earning potential while some of us have none. Did anyone think about us when the interest rates were at 1%. Tough on a fixed income. 4 more raises and we should be in 7th heaven

Hey, I wasn't making any money off my savings account either. But I'd take low interest rate loans over a moderate savings account ANY day. Plus I bet more people have loans and debt than savings, so low interest would help them pay it off quicker.

AllyandJack - I am planning on consolidating but waiting until I graduate in two years (hopefully!)

 

[bicker]

I'm actually getting quite concerned about how low the returns have been on my retirement accounts for the last eight or nine years, even before 9/11. It just doesn't seem like I have a penny more today than I did back then. Salary is the same; savings haven't grown; it's like I've lost a eight or nine years towards saving for retirement... I suppose that means I'll have to work eight or nine years past age 65, assuming anyone would hire me when I'm that old.

 

[WatchinCaptKangaroo]

I feel your pain. I bit the bullet and took a consolidation at a fixed rate which removes all deferments from my loan.

If you are going to school at least half time you can get an in-school deferment (it doesn't matter how many you have had as long as you are in school half-time). No payments and the government pays your interest.

 

[Aimeedyan]

The rates went up over the summer, you should have gotten lots of notices about consolidating your loans. We consolidated all that I had so far at a fixed rate and will consolidate the additional loans once I graduate, knowing those will be at a higher rate.

We're saving a TON by consolidating what I had already.

If you don't want the interest to eat you alive, you should go ahead and consolidate NOW - it's only going to continue to go up.