The target for the federal funds rate remains at 5.25 percent.
When I consolidated my private loans in November 2004, I was offered prime + 2.9 %, for a seemingly reasonable 7.9 percent. However, the end of 2004 was the beginning of the FOMC push. Every month or two, the Fed would hold a meeting, annouce a quarter-rate point hike, which would translate through to the prime rate, and then into my loan rate. It didn't matter much at first, but by August of this year, my rate was at 11.15 percent and my loan payment had increased by $40 per month.
I looked on new meetings with dread.
But fixed rates were freedom. Switching to the fixed- (and much lower) rate loan at my credit union meant that Greenspan/Bernanke was no longer the big bag wolf, huffing and puffing and blowing my budget down.
I gladly accepted a higher monthly payment and shorter repayment term for that.
When I consolidated my private loans in November 2004, I was offered prime + 2.9 %, for a seemingly reasonable 7.9 percent. However, the end of 2004 was the beginning of the FOMC push. Every month or two, the Fed would hold a meeting, annouce a quarter-rate point hike, which would translate through to the prime rate, and then into my loan rate. It didn't matter much at first, but by August of this year, my rate was at 11.15 percent and my loan payment had increased by $40 per month.
I looked on new meetings with dread.
But fixed rates were freedom. Switching to the fixed- (and much lower) rate loan at my credit union meant that Greenspan/Bernanke was no longer the big bag wolf, huffing and puffing and blowing my budget down.
I gladly accepted a higher monthly payment and shorter repayment term for that.
1 Comments:
Hey there. I'm new to your blog. I'm a second year MBA student looking to consolidate loans before I graduate in May 2007. I have Stafford loans, a Graduate Plus loan and a private loan through Citibank. Any advice? Sallie Mae is breathing down my neck trying to get me to consolidate, but I've recently heard of other companies you can consolidate with like Nelnet. Is there any benefit of going through Sallie Mae? Should I try to consolidate all my loans or just the federal ones?
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