What are the risks associated with variable rate loans interest for students?
May 30, 2010 by admin
Filed under Student loans
I must be applied recently, to select Student loan Sallie Mae chip through a co-signer, and we were the only one available, a variable rate loan would be said of 6125% to 11,875% (LIBOR +5 . 750% to 11. 500%). I do not understand what that means, LIBOR and I do not feel comfortable with the possibility of higher interest rates forever. Am I correct in thinking that this involves a lot of risks?
LIBOR is an indication that the loan is linked to. Now, be very careful with the variable interest rate. In your case, it may go up 11,875%. Go with a fixed interest rate.