I have 80k in private student loans at a variable rate, should I try and get a fixed rate since rates are low?
May 22, 2010 by admin
Filed under Student loans
With the Fed lowering rates so much now should I shop around to try and get a fixed rate that may be a little higher than my current variable rate (5. 25%) or stay with the variable rate? Should I be in a rush to pay this principle off or just take it as it goes? I am 24 and working at a financial services company in the IT shop. Thanks
Now is a good time to refi. Rates will probably not stay this low for long and they won’t come back down for a while when they go back up. The downside is that you’ll pay a higher rate for a while. The upside is that you’ll avoid them going up potentially very high in the future.
I’d say refi and don’t be in a hurry to pay them off. You’d be better off moving your additional cash into long term investments like a IRA or 401k. Why? Your student loans are probably the cheapest loan you’ll ever get. Build up some investments for your future.