<p>Perkins is scheduled to expire in 2013 (not 2012 as I may have mistakenly written elsewhere). All of the money controlled by the colleges is scheduled to be returned to the Feds at that tie. Obama wants to replace it with a new program with 6.8% interest rates, but there is no guarantee that will happen. </p>
<p>Yes, after you have maxed out federally subsidized loans, for a person or family with great credit, then a variable rate private loan may make sense for a few thousand dollars that you know you can easily pay off quickly. However, interest rates may be extremely violatile over the next few years. I would feel much safer with a fixed rate.</p>