Reply #1: It's an excellent idea [View All]

[LiberalEsto]

The federal government also needs to regulate the outrageous practices of the companies that service these loans. Even though interest rates in general have dropped significantly over the past year, one of my daughter's month loan payments was increased by about $15. When I called to ask why, they told me it was because of higher interest rates.

I demanded to know why the interest rate on her loan was increased when other interest rates were dropping. I was handed over to a manager, then another, but nobody could explain it. Finally somebody told me that on the date the loan payment was re-calculated, the interest rate was allegedly higher that last year. This was utter horseshit, but I had no way to prove or disprove it. These variable rate student loans leave the door wide open for all kinds of sleazy practices.