Compare Interest Rates of Student Loans

Student loans are one of the several types of financial aid available to students who want to pursue a college degree. They are designed to help students finance their education by providing funds for tuition fees, books and living expenses that have to be paid back over a number of years. Scholarships and grants are also available, but not all students may fulfill their eligibility requirements, meaning they may to turn to loans, a more feasible option.

comparing-your-optionsTypes

Both the federal government and private lenders offer student loans. Federal student loans include the Stafford, and Perkins, which are need-based as well as PLUS which are not need-based. To apply for these funds, students must fill out the Free Application for Federal Student Aid (FAFSA). The award money in each program varies and the interest rate of these loans is much lower than others.

Furthermore, private loans are available to students who want to obtain a college degree. These funds are basically granted by private institutions like banks and they are awarded to students who have a solid credit history. Students may need a cosigner to benefit from these funds and the interest rates of these options varies by lender.

Finding the Best

To find the most useful financial assistance in the form of student loans, you must compare interest rates. Comparing rates of different loan programs will help you choose the one that is most affordable for you.

Other than learning about the interest rates of student loans, you must check the maximum amount disbursed in each program. It is also very important to familiarize yourself with all the terms of repayment. Choose the loan that has the lowest rate of interest and other terms and conditions that best suit your needs. Federal student loans are generally the best option since their rates of interest are lower than private loans, which are why federal loans should be your first choice; however, if you need more money to fulfill your college expenses, or if you need more flexible loan repayment options, you can also explore private loans.

 

Types of Student Loans