8 steps to take before getting a student loan
4. Understand fixed vs. variable
For families that borrow (and many do), be sure to understand the difference between fixed and variable interest rates. Variable interest rates are tied to indices that right now are at an all-time historic low. That means that if the rates go up, families will need to have flexibility in their budget to accommodate rising monthly payments. The amount you pay on a fixed rate loan never changes, no matter what happens to rates in the future.