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This is one area you may actually have seen your rates go down for the 12-month period that began July 1.That's because student loan rates are not tied directly to the Fed funds rate, but rather to the last auction in May of the 91-day Treasury bill. The rate for that T-bill fell relative to where it was during the same auction a year earlier.
As a result, interest rates for federally guaranteed, variable-rate student loans issued after July 1,1998, dropped 0.05 percent.
The drop is small -- it potentially would save you only about $56 over the life of a $20,000 loan assuming you could lock in that rate. But given that student loan rates have been at all-time lows for a few years, you've had the opportunity to save plenty.
To see whether it makes sense for you to lock in the new rates by consolidating your loans, click here.
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