Could low interest rates affect school loans?

Could low interest rates affect school loans?

9 October 2008

As interest rates have been lowered by a full percentage in the past few days, home loan interest rates will be decreasing. Banks, credit unions, and financial institutions haven't given any indication if they will lower the interest rate on other credit products, such as school loans.

Many banks, building societies and credit unions have variable personal loans, so if lowered interest rates do have an impact on personal loans, you might be fortunate enough to save some money.

When you compare school loans, you have the options of variable personal loans or fixed personal loans. Variable loans have changing interest rates and fixed loans have the same interest rate throughout the term of the loan. So if you're after a car loan so you can get to school, think carefully about what you're after.

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