Some loans are based off the Treasury bill. In these cases, the loan rate fluctuates. This can either be really good or bad. When interest rates go up, you may want to restructure the loan.
This is good to know, thanks for the valuable information. While I am not in the market for student loans, two of my sisters are and I will be sure to pass this information on. Thanks.
Yes, it's much better if you can lock in a good interest rate. If you do have to get a fluctuating rate to start out with, try to refinance to a low fixed rate ASAP.
Be careful with refinancing. If you have a loan that has pirks like deferrments and forebearances, you might los those options in a refi. Sometimes it is better to make double payments on a loan that is fluctuating so that you can be rid of it instead lsing some other flexibilities.
Also watch those ones that have the attractive "pay only the interest" for a year or so deals. My ex husband had one of those, and when his beginning period was up, the interest was considerably higher than we expected.
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