UPDATE- FED DROPPED INTEREST RATES TO NEAR ZERO SUNDAY.
President Trump announced that interest rates on all student loan debts would be at zero until further notice. If the administration is able to make this budget decision, the next question is, should you start paying down principal? Interestingly, the fed just dropped interest rates from 2.25 to 2% and is predicted to drop further by the end of the year. This would have been a good time to refinance loans with lower interest rates, but now that the interest rate is zero, that plan should be on hold. With the election coming up and policy changing, paying down principal could be a gamble if the next step by the government is to forgive all student debt. Probably a good time to discuss this with a financial advisor. If nothing else, keep your eye on the news. If the student interest rates are reinstated and the fed drops rates again, it could be the time to consolidate all debt and refinance. Either way, students with debt just save thousands of dollars in interest.