Graduated Learning: Life after College

I got my degree, I got a job…now what?

Looking at the positive of the recession April 11, 2008

The Feds keep lowering rates, which is unfortunate for my savings account, but great for my student loans.  As I’ve mentioned in the past, ING, as well as most other banks that offer “high yield” savings accounts are staying close to the Federal Fund Rates, which is currently 2.25%.  And so my account has suffered a little, but I haven’t taken any money out of my “emergency fund”, except to fully fund my Roth IRA for 2007.  Since I had started the Roth IRA halfway through the year, I didn’t put enough in to cover the $4,000 max for last year.

Anyway, I just wanted to remind you to check your rates that depend on the Federal rate.  Some rates are fixed (for me that means my consolidated student loans stay at 4.5%), but other rates depend on the Federal rate.  While I don’t worry about credit card rates (I pay off my balance every month), some credit card rates are based on the Fed rate plus some constant extra percent above that.  The one rate that I’m excited about is my student loan rates.  I owe a large chunk of money for student loans that follows the Fed Rates…and every quarter, they readjust their interest rates accordingly (I’ve heard many companies do this).  So while ING and other banks follow the Fed rate very closely, these rates go at a slower pace.  So, currently, those loans are only at 6%!  Which still is a lot, but it’s a lot better than the 8.5% it was a year ago.

Oh, and Trent at The Simple Dollar wrote an article about the recession and what’s going on…it’s pretty good, you should check it out!

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