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To: Ilaine who wrote (48188)	4/8/2004 12:40:15 AM
From: LLCF	Read Replies (1) \| Respond to of 74559

<Is it possible to lock in low interest rates on loans that have yet to be taken out? In other words, get a commitment from a lender for low interest rates for future student loans? If yes, how?> Brilliance? Brilliant people HIRE people who keep track of such drivel, not jam such worthless, ever changing facts into their brains. DAK

To: Ilaine who wrote (48188)	4/8/2004 1:15:12 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 74559

Hello CB, Is it possible to lock in low interest rates on loans that have yet to be taken out? In other words, get a commitment from a lender for low interest rates for future student loans? If yes, how? Before I retired, I worked in a college environment and sometimes programmed small parts of the student financial aid program. The rules may have changed since I retired nearly 4 years ago now, but probably not... There are basically two Federal student loan programs. The first one is the Federal Family Education Loan Program, and the second one is the Federal Direct Student Loan Program. As far as the student is concerned, both programs function much the same. But for the lender and the Federal government, the two programs are quite different, with different rules and different funding levels. Simply put, the student gets a loan from a qualified lender. Said loan is for the purposes of paying tuition, fees, room/board, books and any related student expenses while attending a qualifying institution of higher learning. Sometime (time is variable here) after graduation, the student is required to repay the loans, either in monthly increments or in a lump sum, until all loan balances are satisfied. Generally speaking, the interest rates charged on student loans are substantially lower than prevailing interest rates at the time of the loan. And the interest doesn't start accruing until after the loan repayment period starts... Quite simple from the student perspective. However, not as simple from the lenders' perspective. The lender is given a guarantee of repayment (in essence, a form of a subsidy) by the Federal government in exchange for a lower interest rate (lower than currently prevailing rates at the time of the loan). The Federal government may (or may not) subsidize the student loan by paying the lender any differences between negotiated rates, prevailing rates and the actual loan rate granted to the student. The lenders' responsibilities are clearly spelled out in the Federal programs, which are carefully monitored by Federal auditors. So, all of the above is a roundabout way to answer your question regarding the "locking in" process of interest rates for student loans which are currently at or near historic lows. The simple answer is no, or not likely, because the Federal government already guarantees and sometimes subsidizes the loans, so they're not going to subsidize a loan that is lower than other loans granted within the same time frame. KJC