The federal funds rate, which the U.S. central bank sets, is the rate at which banks borrow and lend to one another overnight.
Home loan rates have already started to fall, largely due to the prospect of a Fed-induced economic slowdown.
Student loansFederal student loan rates are also fixed, so most borrowers won't be immediately affected by a rate cut.
Eventually, borrowers with existing variable-rate private student loans may also be able to refinance into a less expensive fixed-rate loan, according to higher education expert Mark Kantrowitz.
However, refinancing a federal loan into a private student loan will forgo the safety nets that come with federal loans, he said, "such as deferments, forbearances, income-driven repayment and loan forgiveness and discharge options."
Persons:
that's, McBride, Jacob Channel, it's, Matt Schulz, Bankrate's McBride, Mark Kantrowitz
Organizations:
Treasury, Mortgage, Association, Auto, Consumers
Locations:
U.S