Federal Student Loan Rates

Federal Student Loan RatesStudent loans are a convenient and suitable method for financing your college education, especially if you have not been able to secure any scholarships or grants. As college tuition has continues to increase considerably, you may have to look for many sources of alternative funding for your education to be able to pursue a program of interest. Various federal student loan programs are available to help you meet your educational goals. These loans have simple eligibility requirement and they feature low rates of interest and flexible terms of repayment, making them one of the best funding options for college.

Federal Student Loan Rates

Before applying for an award, you must learn about the federal student loan rates, which will not only let you know about the total amount you will have to pay back after your studies but also help you analyze what you can afford. Compared to private student loans, federal student loan interest rates are much lower, which is why they are more widely preferred by many students. Student loans with lower interest rates allow you to pay back these funds in a more convenient manner so that chances of defaulting are much lower.

The government is responsible for paying the interest on subsidized student loans while students are in college. This way, repaying loans becomes less costly for students. Subsidized student loans have lower rates of interest compared to unsubsidized loans.
In case of unsubsidized student loans, students accrue interest in college and the government is not responsible for paying interest. As a result, in the end, students have to pay higher amounts.
Plus loans are meant for the parents of the students who want to contribute towards financing their child’s education. The eligibility requirements of these loans are simple, allowing many people to benefit from this type of financial aid. Simply use our loan comparison tool to compare the different options you have for financing your college education.