Rosa Said:

What are the risks involved with variable rate student loans?

We Answered:

LIBOR is an index that the loan is pegged on. Now be very careful with variable interest rates. In your case, it can go up to 11.875%. Go with a fixed rate.

Armando Said:

Is a student loan rate set in stone? Is it possible to negotiate a lower rate on old student loans?

We Answered:

No, these rates are set by the government. There are somethings though to watch out for. Student loan rates are variable, so they are subject to change every year. That's good if the rate goes lower, and bad if it goes higher. Just as an example, when I graduated from my undergraduate, they were at 8.5 percent, then we went into the 2000 recession and in 3 years they were down to 2.5 percent.

You can consolidate student loans, and people will always want you to do this, but that locks in the current rate... which is good if the rate is low, very bad if it's high. Once your loans are consolidated, that rate is locked forever. The only way to change it is to take out new loans and consolidate them with the old already consolidated loans.

Jose Said:

Is there a grace period when rate shopping for student loans where my FICO score isn't effected?

We Answered:

I think the mortgage period is a month. I don't know if that applies to education loans. I would recommend contacting Trans Union, Equifax or Experian to be sure.