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Really high student loan interest rate, its approved and sent to the school whats can I do?

thatpolishbassplayer - 2006-08-10 18:27:59 - Personal Finance

So I applied for a student loan, and I was happy because they accepted me, and later that week I recieve a letter telling me my interest rate is 12.5% I was wondering if I can not accept the loan or what before school starts!

Best Answer:

You need to go look for a refinancing loan. Although, it will probably be 7.5% interest, it is better than your 12.5%... which I can't believe a student loan is actually that high! I thought that 7.5% for a student loan was the FEDERAL LIMIT! You may have to check with the department of higher education or whatever, but I'm pretty sure it is 7.5 limit. I graduated 2 years ago and mine was 3.3%, it's now 5.3% through refinancing (it would be 7.5 if I didn't refinance by July 1, 2006.)

Answers:

did you already sign that you accepted it? if you didnt , then just dont sign. if you DID, then just give the money back as soon as they give it to you.

You need to go look for a refinancing loan. Although, it will probably be 7.5% interest, it is better than your 12.5%... which I can't believe a student loan is actually that high! I thought that 7.5% for a student loan was the FEDERAL LIMIT! You may have to check with the department of higher education or whatever, but I'm pretty sure it is 7.5 limit. I graduated 2 years ago and mine was 3.3%, it's now 5.3% through refinancing (it would be 7.5 if I didn't refinance by July 1, 2006.)

Is this interest deferred? Payments deferred? If so, do not worry about it now, you can always talk to a different lender later on to pick up your student loans. If you are currently making payments and taking on interest, I would look at other lenders right away, see who can offer you the best rate. The new lender will pay off your current lender.