Questions from a Cash-Strapped College Grad

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Hi Ashley- that is a good question. You are so correct that yields have plummeted lately, and for the most part are not close to the usual 3-5 percent. By using the comparison tool on bankrate.com, I did find a couple that are 3.0 percent, so bankrate.com is a good place to start. Another thing to consider is taking on just slightly more risk by investing in short-term bond funds, which have yields closer to 4% right now. But if you want to avoid all risk, then it's probably best to stick with money market funds and wait for the yields to go up again.

Kimberly Palmer of DC 12:19PM August 04, 2009

Where can you find mma's with interest rates at 3-5%. 3-5% would look like 3.00-5.00% right? The best I am finding are at around 1.00%, where are good places to look?

Ashley of NE 10:48AM August 04, 2009

If they have any federal direct loans disbursed after july 1 2006, they are eligible for Income contigent repayment and income based repayment, which gives you the option of paying interest only while extending the repayment period. It's good for people just starting out (my preliminary payment pending approval dropped to 130 from 270). The IBR has a forgiveness option for those in public service.
While almost 30k may be a high amount of debt for the midwest, I feel like it is chump change for the northeast. My friends and I would KILL for debt that low.

veronica of NH 12:11PM August 03, 2009