MarkD
Level 2 Member
I'm checking out student loan rates on the Discover Student Loan site for my kids and I see private loan variable rates based upon the 3-month LIBOR (currently .25%) + at least 3.24% for a total of 3.49% versus fixed rates of 5.99%.
The government based Federal Direct Parent PLUS loans offered by the schools are a fixed 7.21%.
Being that the 3-month LIBOR has been below 1% since 2009, it seems like the private variable rate starting at 3.49% is the way to go.
With a good credit score, a little research and initiative you can cut the interest rate in half over what the schools offer you.
Is it that simple or am I missing something? I realize that it is variable and may change in the future, but...
The government based Federal Direct Parent PLUS loans offered by the schools are a fixed 7.21%.
Being that the 3-month LIBOR has been below 1% since 2009, it seems like the private variable rate starting at 3.49% is the way to go.
With a good credit score, a little research and initiative you can cut the interest rate in half over what the schools offer you.
Is it that simple or am I missing something? I realize that it is variable and may change in the future, but...