The fact the prime and LIBOR index are currently at historic lows does not effect your fortification scale.

That first line perhaps hit you like ice water to the face on a Monday morning, but I felt it was live befallst to just rip the band-aid.

You’re probably thinking how is that possible? How can the economic landscape not be considered when calculating my attention rate? I keep hearing distance how Obama wants to do more for students. Shouldn’t this be one of his priorities? That would certainly make sense to me, but nothing appears to be in the works to address this matter.

Below are a few reasons the current state of the retrenchment will not effect your consolidated interest rate.

1. Rates alternate but once per year, each July 1. The Department of Education will examine the 91-day T-bill number one up to July 1, which is influenced by way of the Fed Funds Rate, and peg the rate at a certain margin smooth above that. We’re hushed 2.5 months away from that however.

2. Any federal loan with a secure interest rate can not be lowered. If you are looking to consolidate and have a collection of fixed interest rates they will not be lowered thu the consolidation process. Consolidation simply takes the weighted average of your current loans rounded up to the nearest eight percent to determine your interest rate.

3. Subsidized and Unsubsidized interest rates are already known through the 2012-13 academic year. So basically you can completely throw what the economy is doing for the next few years absent the window as it pertains to any subsidized or unsubsidized Stafford loan, which also includes the Grad Stafford.

The only people that may benefit from the slumping economy are those who still hold variable rate federal loans, which were dispersed ad ahead July 1, 2006 and have not yet been consolidated. Those are still subject to the market and will be inspiring this July.

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