Student Loan Interest Rates
A student loan is the money given to students by the government or a private financial institution in order to help pay for college tuition and other related expenses. The main difference between a student loan and other types of loans is the low interest rate – student loans have remarkably low interest rates, sometimes as low as 3%. Whether you are considering an undergraduate degree or a graduate course at university – student loans are a great way to finance your education. Student loans ensure that the cost of your tuition is covered allowing you to better concentrate on your studies and excel in your field. Low interest rate student loans allow you to invest in an education that ensures great returns, and a stable, successful future.
Why get a student loan?
The days when a high school diploma was enough for most jobs on the market are long gone. Today, virtually every entry level position has one underlying requirement: a college degree. Whether it is the field of healthcare or marketing, engineering or IT – a college education has become an absolute must. However, paying for a college education is no easy task. The increasing costs of tuition combined with inflation, high costs of living and an economic meltdown have made it even harder to afford a quality education. This is where low interest student loans come in, allowing you to borrow the money you need to fund a quality education.
What are the benefits of low interest student loans?
Low interest rates student loans have a number of benefits. Contrary to popular belief, the interest on your loan starts to accumulate as soon as the loan is issued, not after you graduate. This means that the amount you owe keeps increasing while you are still in college. A low interest rate means a smaller increase in the total amount you owe, making it easier to pay back the money you borrowed. However, student loan rates do fluctuate, going up or down with the market. Fixed interest rate loans on the other hand, as their name suggests, are issued at certain rates that stay the same while the loan is paid back. These distinct advantages make low interest student loans and fixed rate student loans the top choice for students around the country.
How do I apply for student loans at the best rate?
If you are considering obtaining student loans at low interest rates, it is important to thoroughly research your options and know the ins and outs of each loan. You can compare most loans online quite easily, and learn their particular advantages and disadvantages. Once you have decided which loan you would like to obtain, you can then start the application process. The application can be submitted online or by phone, and is usually processed the same day. After your application is approved, the funds are generally issued within twenty four hours. Low interest rate student loans are a great way to finance your college education and turn your dream of a better, happy life into reality.
My search for current student loan interest rates mentioned fixed and variable options. What is the difference between these two?
A:Fixed interest rates do not change throughout the loan term. On the other hand, for variable interest, the rates are subject to change. Students should apply for federal loans, as they come with fixed interest rates. These loans are more secure and offer more protection for the borrower. Note: private lenders offer both fixed and variable interest rates.
What are student loan consolidation interest rates?
Consolidating loans means combining multiple loans into one, which typically reduces multiple payments into one, and also lowers the interest rate. The interest rate on a consolidation loan is the average of the interest rate on all the loans. It is rounded up to the nearest 1/8 of a percent.
What is a good interest rate on student loans?
The best private student loan interest rates lie somewhere between LIBOR + 2.0% or PRIME + 0.50% with no hidden charges. However, the problem with loans offering such amazing rates is that they are available only to borrowers with great credit history or someone with a credit-worthy cosigner.
Miscellaneous Student Loan Topics
- Bank Loans
- Be Smart About Private Student Loans
- Before Borrowing Student Loans
- Choosing the Best Loans
- Choosing Private Student Loans
- Choosing the Right One
- Choosing the Right Student Loan for You Video
- College Cost Calculator
- College Loan Rates
- College Loans Parents
- College Savings Plan
- College Tuition Costs
- How to Compare
- Continuing Education Loans
- Credit Score
- Credit Score Student Loan
- Dept of Education
- Education Loan Borrowing Process
- Federal Student Loans Forgiveness
- Federal Vs Private
- Government Loans
- GradPLUS Loan
- Graduate School Funding
- Hierarchy of Loans College on the Cheap
- Hope Education Credit
- Independent Student Status
- LIBOR And Prime Rates
- National Student Loan Database
- Parent PLUS Loans
- Paying Off
- Rights Responsibilities As a Student Loan Borrower
- School Loan Interest Rates
- School Loans
- Student Financial Aid Services
- Student Loan Calculator
- Student Loan Lessons Learned
- Student Resources
- Successful Application
- The Student Loan Checklist
- Tips on How Much to Borrow
- US Department of Education Loan
- US Department of Education Loan Payment
- US Department of Education Loan Servicing
- US Department of Education Online Payment