My son, now age 23, had graduated from ITT at age 20, and has Sallie Mae student loans.  When we originally sat down with the school’s financial aid person, we were told that the initial interest rate on the Sallie Mae loan would be higher, but as Chris established more credit, the interest rate would decline.  This has not been the case at all.  He is paying something like 11.50%, which is outrageous.  He has a mortgage (as of Jan 2011), and has had a few car loans, credit cards, etc., so he has definitely established credit on his own.  The monthly payment on his student loan is almost as much as a mortgage payment.  We have exhausted all possibilities to better the situation, but we are at a loss.  Is there anything, any help, suggestions, to decrease the interest rate or refinance somehow.  It is a real shame for these young people to be faced with such debt, that really amounts to the inflated interest rates. 
Thank you. PW

PW,

I am sorry that your son is facing this situation.  I just put together a response to a similar question here on this thread: http://askheatherjarvis.com/forums/viewthread/129/

Also, look at the information about refinancing that Mark Kantrowitz provides here: http://www.finaid.org/loans/privateconsolidation.phtml

Also, be sure that your son looks closely at all his loans.  It sounds like you are dealing with a private or commercial loan, but it is also possible that he has federal student loans through Sallie Mae, and those have more flexible options.  He can inventory his student loans by visiting the National Student Loan Data System and his credit report.

Best,
Heather

ITT is a for-profit school with predatory lending tactics. For more information, you can check out ForgiveStudentLoanDebt.org and report your experience there for help as well.