Can Sallie Mae change interest rates??

External Since: Jul 17, 2007 Posts: 1

I just received my latest Sallie Mae payment booklet. The interest
rates have more than doubled from the original interest rates on my
loan. I was under the impression that this was a fixed rate loan? I
thought it was dictated by the federal government that student loans
are fixed rate? How can they increase the rate on me? I now owe more
money then I originally agreed to. What can I do?

External Since: Jun 25, 2003 Posts: 261

All Stafford loans made before 7/1/06 were at a variable rate that is
adjusted each July 1, based on the treasury bill rate at the end of May.

The current rate as of 7/1/07 is 7.22%. Some years ago they were about
half that, and years before that they were higher than now.

All new Stafford loans made after 7/1/06 are a fixed rate of 6.8%

Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761

hurricane_number_one.TakeThisOut@yahoo.com said the following on 7/17/2007 1:29 PM:
> I just received my latest Sallie Mae payment booklet. The interest
> rates have more than doubled from the original interest rates on my
> loan. I was under the impression that this was a fixed rate loan? I
> thought it was dictated by the federal government that student loans
> are fixed rate? How can they increase the rate on me? I now owe more
> money then I originally agreed to. What can I do?
>