In past federal government has had a lending program to assist people with funding their secondary education costs but this system has it draw backs. The old system of student loans was fraught with fraud, was time consuming and very confusing to most people. With old system there was more than 7.000 lenders with 65 secondary markets and 35 guaranty agencies. For one loan most students would have to fill out countless forms and apply to numerous agencies until they finally got answer they needed.

The other big problem with old lending system was cost of administrating loans. On average it cost government $11 per $100 loaned to manage accounts. The solution to this is simplified Direct Loan system that is now in place. The Direct Loan system is exactly what it sounds like; government lends money directly to you thus eliminating middleman and much of cost of lending money to students.

Cautious is what describes your state. A fixed rate mortgage will be solution to stress that they are facing as to repayment.

A Fixed rate mortgage, as name suggests limits interest rate to a particular level. The borrower is protected against any increases in interest rate. He keeps on making a lower repayment, when his contemporaries who did not have a fixed rate to protect them, pay a higher interest.

Apart from savings that a fixed rate results into, it also has an added advantage. The borrower is not required to make regular calculations considering newer rates. He keeps on paying same monthly repayment that he paid at beginning.

This however is not free from any disadvantages. We deal with disadvantages of fixed rate mortgages in following paragraphs.

A borrower normally opts for a fixed rate mortgage to protect him/ her from hikes in interest rates. But they fail to consider a situation when interest rates start falling. The entire statistics of borrower fails and he feels cheated.

In such a scenario he is left with no options except to continue making repayments, or look for refinancing mortgage through remortgage. Continuing with repayments will mean that mortgagor pays higher than what he actually owes.

Even remortgaging will not produce desired results. The lenders accept to remortgage fixed rate mortgage only when they find it having some potential. Also borrower will have to accept remortgage at lenders terms. This means that borrower will have to face a loss in both cases – whether he chooses to continue repaying or he goes for a remortgage.