LogFAQs > #906248029

There's also another thing to keep in mind with student loans. Much like other types of debt (credit cards, mortgages, auto, etc) the interest rate is tied to the prime rate controlled by the Federal Reserve. They raise this rate periodically when the economy is doing well to keep inflation in check and to increase the cost of borrowing. They've raised the rates twice this year already, in 0.25 increments, and are expected to do so two more times this year. Interest rates right now are still historically low, but whatever rate you have when your loan originates is what you will be locked into. So there may be some merit in taking the loans earlier, but I don't think it will save you any money in the long run. You should still avoid loans if at all possible.