Lynn?? Do you have a link to the 'new' laws

[angeleyeskkhr]

I'm trying to understand what happened to the interest rates on loans that were taken out BEFORE July 1st of last year.

 

I was under the impression they were to raise to 6.8% and become fixed JUST as the ones after July 1st would have been?

 

But I got a letter in the mail saying my loans prior to July 1st were now at a 7.14% VARIABLE rate.

 

When I called they said that the new laws only applied to loans originated AFTER July 1st and that the ones prior were still at a variable rate and change each July. But that still doesn't explain why it's at 7.14 when last July they were at 6.8 and wouldn't they wait until each JULY to change the interest rate?

 

I am getting this info. from TGSLC

 

ETA: When I pull the loans up on the website to "check" them, it says 6.54% Variable.

Edited February 9, 2007 by angeleyeskkhr

[Cynic]

I'm trying to understand what happened to the interest rates on loans that were taken out BEFORE July 1st of last year.

 

I was under the impression they were to raise to 6.8% and become fixed JUST as the ones after July 1st would have been?

 

wrong

 

But I got a letter in the mail saying my loans prior to July 1st were now at a 7.14% VARIABLE rate.

 

right

 

When I called they said that the new laws only applied to loans originated AFTER July 1st and that the ones prior were still at a variable rate and change each July. But that still doesn't explain why it's at 7.14 when last July they were at 6.8 and wouldn't they wait until each JULY to change the interest rate?

 

7.14% effective 07/01/06. BRAND NEW STAFFORD LOANS you took out on or after 07/01/06 are 6.8%

 

I am getting this info. from TGSLC

 

ETA: When I pull the loans up on the website to "check" them, it says 6.54% Variable. :yahoo:

 

.6% "government" interest rate reduction still applies to loans in a "deferment" status that were 1st disbursed before 07/01/06. 7.14-.6= 6.54

 

If you want to see "the new laws" google "deficit reduction act". If you want to see the interest rate change, in writing, directly from the DE here it is:

 

http://www.ed.gov/students/college/repay/2006-changes.html