<p>Our son is entering college for the first time in September. We have taken a PLUS loan and he has a Stafford loan. We want to take advantage of locking in a low rate this week, but I’m confused as to how to go about this since although I have signed the promissary note, the loan won’t actually be dispursed until January, when we start making payments. Is there anything that can be done about this loan, the interest rate of which will jump to over 8% this week?</p>
<p>Thanks</p>
<p>My understanding is that you cannot consolidate loans you have not yet received. BUT to be sure, call your lender. They have the best info.</p>
<p>You can not lock in the lower rate. You get the rate as of the date the loan is disbursed. (the new July 1 rate). While I used a PLUS loan for the last few years for both my children I decided to lock in a much lower rate on a home equity loan for next year’s tuition. The financial aid office at the university was not surprised and many columnists are suggesting the home equity which may be 2 full points lower than PLUS.</p>