No reason to panic borrowers, but in case you haven’t been paying attention, your private student loan interest rate has gone up again.
After about a year of falling steadily (awesome), then a few months of holding still (bearable), the prime interest rate has begun to increase (barf).
How often your private loan interest rate can change depends on the terms of your loan. Mine can change once per quarter, but several of my friends have loans that are only permitted to change once quarterly (lucky ducks).
In my case, last month my interest rate was 3.58%, and this month it has increased to 3.84%. Based on my current balance, that amounts to a difference of about $47 per year in extra interest. It’s not a life-altering amount, but I’d rather NOT pay it ... then pay it. Blech.
Will your private student loan interest rate continue to go up? No one knows for sure. If I could predict rate hikes and decreases I wouldn’t have a student loan. I’d be a kajillionaire on the cover of Forbes. Sighhh ... actually I’d hate that because I’m shy. But the no student loan part would be cool.
If it does move again, of course we’ll keep you posted.Add a comment