Rates on federal student loans have fallen to around 3 percent — a 35-year low. Even better, students can lock in those rates, potentially saving thousands of dollars by ensuring their payments won't increase even if interest rates do.

But a proposal in Congress could shut down the party. The measure would end the fixed-rate option, making all federal student loans issued after July 2006 subject to variable rates. Repayments would then rise and fall each year in sync with interest rates.

Posted by: Ted at 01:02 PM | category: Square Pegs
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