Unfortunately there are, as this MSN article points out, a few catches to qualify for this rate, making the whole deal nothing more than a talking point for some of our elected officials.
Seriously. Very few people will be able to take advantage of this offer. And those who can have not made the smartest financial decisions regarding their loans over the years.
- If your student loans were issued after July 1 2006 ... BAM! No low rate for you!
- If you are still in school ... whoops! Sorry...should have dropped out. Can't touch this rate!
- You consolidated right after graduating to snag a lower rate? Too bad so sad.
It seems that if you take steps to make sure you are fiscally responsible then all you get is a slap on the back. But if you slack off a bit or are one of the three people who somehow have all of their student debt in the form of variable rate federal loans which by way of sorcery have not yet entered repayment, then congratulations we'll hand you the keys to a wonderful low interest rate!
If you don't qualify MSN has a few suggestions for how you can lower your interest rate, though I can't get behind their suggestion of using a 401k loan to pay off your student loans, and if you have a rich relative and haven't already asked for a low rate loan then well, how'd you make it through four years of school?