If You Have Student Loans, Read This

The world of student loans just became more complicated and expensive for some borrowers, while others are about to get a great deal.

It all depends on whether you're borrowing now or dealing with loans from the past.

Interest rates on variable-rate student loans will drop sharply on July 1st. That will make newer, fixed-rate loans look like a terrible deal, although for most borrowers, they're the "only deal in town."

Two years ago, Congress changed the student-loan program from a variable-rate deal based on Treasury bill rates to a fixed rate program at 6.5%. That rate now looks extremely expensive in comparison with falling interest rates in the marketplace. Still, those who have Federal student loans taken out after July 1, 2006, are stuck with those relatively high fixed-rate loans for the life of the loan. ...