Raymond Said:

How do they calculate the annual interest rates for student loans?

We Answered:

Student loan interest rates and fees really depend on the type of loan you're taking out. It also depends on your credit rating.

Generally speaking, a fixed interest rate for Stafford Loan is at 6.8%. A PLUS loan is currently at 8.5%.

A Student Signature loan's rate is based on the prime rate (and rates can be +/- 1%)

Everything I've seen right now seems kind of high, so you'll probably want to consolidate all of your student loans at some point.

Right now, loan consolidation products run from about 4.75% to 6.125%.

Jim Said:

what is your insights about the proposal of cutting interest rates for student loans next?

We Answered:

It only pertains to newly originated loans, not to one's that have already been disbursed. Basically, it will help current students but have zero effect on those who already have loans at higher interest rates.

For more information check out studentloansanity.com and http://www.tedkennedy.com/content/1001/s…

Brett Said:

why does a student who has student loans have to combine them with a threat of higher interest rates.?

We Answered:

ok, stafford loans have a variable interest rate. this means that it can change every july 1. it's possible that in july 2007 the rate would drop or that it might rise again. by consolidating, you are avoiding the risk of higher interest rates. but, you lose your grace period and the possibility of the rate dropping lower than it is currently. im a financial aid officer, if you have questions, please feel free to email me.