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No. of Recommendations: 2
This new Higher Education act reauthorization:

Single holder rule - they want to get rid of it

Consolidations - at variable rate only (the pre-Feb 1, 1999 rule, basically. Sallie changed its mind.)

Variable is actually good news, unless you are a current student. (in which case you don't lose anything but the chance to have locked in a low rate) All the people who are stuck in high, fixed rate loans can basically take a roll of the dice, and see if the average of whatever they think variable will be is LESS than what they pay now.

For the 8.25% crowd, that's a no-brainer, right? You are better off with a variable rate, unless you have put a number of years into the income contingent repayment---then, it might be a spreadsheet decision.

What I would like to see is that the markup on the variable rate is something LESS than 2.3%. Frankly, I don't see any reason why it can't be 1.7%---since that's what it is for kids in school for the first time.

Congress has to start getting more creative (let me pay it off through a 529 plan, for example. All interest deductible at any income level, etc.)

But it's a start.
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