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Student Loan Consolidation Interest Rate

Maurice Said:

Will the student loan interest go up?

We Answered:

I expect the rate will go down since it, like all other loan interest rates ie credit cards, is calculated as Prime Rate, aka Prime, plus something, that something is different for every loan and sometimes for every person. Since Prime has dropped like three times over the past few months I'd expect the rate on new of variable student loans to go down. However, if you already have a loan with a fixed rate it will remain locked as it isn't affected by anything except you not paying.

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