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Is prime interest rate or Laibor interest rate better when colsolidating private student loans?
Financial Aid
Megan M asked:
I am consolidating my private student loans and some places have prime interest rate and others have Laibor inerest rate. Which is a better choice?
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Tags: Prime Interest Rate, Prime Rate, Private Loans, Private Student Loans
September 6th, 2008 at 3:04 pm
Depends what the rate is. I would look beyond the rate. what is the lender offering as incentives: how many on time payments before the rate is reduced, how much is the rate reduced if i get the payment automatically deducted out of my account, etc. Look at the incentives before you look at which rate is better. LBIOR is typically lower, but with the Fed cutting rates again, it may not be.
September 7th, 2008 at 1:10 am
Its hard to say without all the details, but I would be VERY careful when trying to consoliate private loans. As mentioned earlier, you really have to compare apples to apples here. With recent changes in the industry, there are probably FEW borrower benefits for conolidation loans. Good luck.
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