Sunday, June 14th, 2009

How to lower student loan interest rate?

Low Interest Student Loans
SM S asked:


I am 25 and have two student loans, one is 4% (with Key bank, $50K), the other one is 9% (with Government, $10K). Would appreciate your advise on how to lower the interest rate on the government student load piece.

Thank you very much

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

This entry was posted on Sunday, June 14th, 2009 at 12:00 am and is filed under Low Interest Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “How to lower student loan interest rate?”

Lisa S Says:
June 16th, 2009 at 8:14 am

I’m not sure you can.

But a simple rule of thumb would be to pay down the higher interest loan faster. With a mortgage, you can pay additional amounts toward the principal. That might be possible here…but these are unsecured loans…without collateral I’m not sure anyone will lower your rate.

I suggest you call both borrowers, and see if they have any programs or suggestions.

Good luck!

Fernandes Says:
June 18th, 2009 at 1:14 pm

In 1979, when I was beginning college, the prime interest rate was 11.5 percent and student loans were at 3.4 percent — or 70 percent below prime. Now, the prime rate is 5.25 percent yet student loans are 8.5 percent (and adjustable) — or 57 percent above prime. What is going on?

Leave a Reply

You must be logged in to post a comment.