Post # 1
The numerous student loan threads got me curious. When I graduated I had about 30k in private student loans through Sallie Mae. I noticed a while back under terms that my interest rate is variable (this obviously makes me REALLY uncomfortable, I didn’t know ANYTHING about this stuff when I signed on the dotted line).
For the past 5 years of repayment the interest rate has stayed at 4.75% which I’m fine with…. does anyone else have a variable interest rate with Sallie Mae and has it been locked for you?
I’m still scared of the potential of it rising so I have been triple paying this stupid loan… it is half gone, I can’t wait until I’m “just” in government debt!
Post # 3
My adjustable rate loans (not through sally mae) have all been super cheap since the economy crashed – 2.25%! It’s the damn fixed-rate federal loans that were killing me with 6.8%. It all depends on the economy since these rates tend to be tied to some index (like LIBOR – if you’re following the news). Simplistically, in good times interest rates are high and in bad times they’re low. So I wouldn’t expect any dramatic increase any time soon…
Post # 4
@MyFavouriteChords: Well don’t ever pay late, I know someone who did and their interest rate shot right up to almost 16%.
Post # 5
I have Sallie Mae as well, but I have a fixed rate. It’s super low 🙂
Post # 6
@nickels: yikes! I haven’t been able to find in writing anywhere what the rate can flex to, but 16% is disgusting! Luckily I’m about 6 months ahead on payments and hoepfully will never have to be in that situation!
Post # 7
What the heck! My Sallie Mae private loan is 12%! Always has been and they told me there was nothing I could do to lower the interest rate.
Currently I’m in graduate school and taking out grad loans to “pay off” that sucker. Much happier with the 6.8%.
Post # 8
@LeRenard: When I graduated in 2007 I had the option to consolidate my private loans which were all Sallie Mae into this one flex rate loan. My interest rate on all the private ones were between 6 and 8%, so obviously at 4.75% I’m doing well, but could be in a lot of trouble if it flexed to 16%.
I really wish they were more transparent with lending practices etc. 12% sounds annoyingly high…. hopefully someone will start looking at this stuff and come up with a solution so we don’t have a student loan bubble burst a la the housing market.
Post # 9
I WISH i had an adjustable rate! Instead i got locked in at like 6.8% when the interest rates were higher! It SUCKS! And i can’t get out of it. Consider yourself lucky.