I neglected to mention in the rest of the letter from Iowa Sucky Loan, they said that we could change the index that are rates are figured from. Right now it is some COF index, which obviously must be really high. We have been given the choice to change to the LIBOR index (London Interbank Offered Rate) instead of the COF index. That would take the current rate down to 5.85%. Of course this is probably subject to change at a moment's notice. We looked on the internet, and the highest the rate has been in the last ten years is like 9 something. A lot better than 13.13% I would say.
~Des
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2 comments:
Hi Des-
I got my letter today too. It looks like changing the index is the way to go. Did you look up the COF Index and see its fluctuations over the last 10 years? I am going to do some further research, but I will probably do that too. My big concern is that once you switch over to the LIBOR is that you can't switch back to COF. I didn't know I needed an economics class to deal with these damn things after graduation!!!
P.S.-I did a little research, and it sounds like this is happening with most private student loans that were previously based on the COFI. It also makes me wonder why they didn't have us change to the LIBORI sooner if they were not even offering the COFI on their loans anymore. Also-I saw that they are no longer doing consolidations, even on federal loans. I wonder what's up with that!
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