College Loan Rates

Financing options

Paying for a college education is burdensome for most people, but the extraordinary experience is often worth the investment. Access to college education has been made possible by various financial aid options such as grants, scholarships, on-campus jobs and loans. While grants and scholarships – often called ‘free money’ – do not require repayment, options of this money are generally limited. When free money runs out, loans are often a financial necessity to pay for school.

Types of Loans:

1. Federal Loans.
Compared to private funding options, federal aid are cheaper due to their lower college loan interest rates and greater accessibility. The two federal programs-Stafford and Perkins-are widely known across the U.S. The interest rate has been fixed at 4.66% for Subsidized Stafford, at 4.66% for Unsubsidized Stafford for undergraduate students, 6.21% for Unsubsidized Stafford for graduate students, and at 5% for Perkins loans for the academic year 2014-15. Applicants find out the amount of the aid they are eligible for when they fill out the FAFSA (Free Application for Federal Student Aid) form. Upon completion of the FAFSA, the cost of attendance becomes apparent and it is easier to grasp how much families of students are able to contribute, leaving the rest of it to be covered by financial aid.

Additionally, parents can obtain PLUS (Parent Loan to Undergraduate Students) loans, and the interest calculations come into play 60 days after the loan has been disbursed. The rate of interest for the year 2014-2015 has been fixed at 7.21% and stays in place for the duration.

2. Private Loans.
The pre-conditions of private college tuition lending includes credit worthiness and usually a cosigner; there is no need to fill out the FAFSA form. College loan rates for loans offered by private vendors tend to be much higher than their federal equivalent. Private lenders may charge some form of a fee, which contributes to the cost of the loan. Our website offers a loan comparison tool that helps you compare different loans from vendors in terms of cost, college loan interest rates, APR and terms of repayment. Based on this comparison, your decision as to which loan best serves your requirements will become a lot easier and you may pursue your academic goals comfortably.

 

Miscellaneous Financial Aid Topics