Low Interest Student Loans
Why is it important?
As you pursue higher education, you will find that you need to use several financial sources to cover your educational expenses. Most parents cannot financially handle the total cost of college out-of-pocket, as costs to continue to increase, so students feel that their family’s financial limitations will not allow them to continue their education. However, with the help of various available low interest student loans, your educational goals can still be reached. These types of loans are available from the federal government and private financial institutions. Two well-known federal low interest student loans are the Stafford and Perkins student loans.
What are the benefits?
The most obvious benefit is that you will repay less money due to the lower interest rate. You may also find that your monthly payments are less and you might be able to pay off the loan(s) in a shorter amount of time. This will allow you to save more money once you begin working.
There are a number of low interest rate school loans you can apply for. These are usually disbursed by the federal government. The average rate of interest on these loans ranges from 3.86% to 6.41%. The exact rate will depend upon the loan program. Some of the most popular student loans available include the Stafford loan and the Perkins loan.
Are there any private, low rate student loans available?
Generally speaking, private student loans have higher interest rates, and federal loans are the low rate student loans of choice. However, if you have to borrow a private loan and are looking for low rate student loans, you need to make sure you have a cosigner with a very strong credit history. Having such a cosigner can help you obtain a lowered interest rate on the private student loan you applied for. However, you may not be able to lower the interest rate dramatically, and do remember that every private lenders has different terms and conditions and hence their specifications cannot be generalized.
Where can I find low interest rate student loans?
Low interest rate student loans are easily accessible: federal student loans offer the lowest interest rates on any student loan being offered. In order to qualify for the loan, you have to submit the Free Application for Federal Student Aid, known as the FAFSA, to demonstrate your financial need and eligibility for these federal low interest rate student loans. If you have exhausted your federal options and have turned to private loans, make sure you have a cosigner with a very strong credit history who can help you bring down the interest rate.
My search for low-interest private student loans mentioned a preferred lenders list. What is this?
Preferred lenders list would be mentioned when searching for low interest private student loans. A number of universities keep track of the most favored private lenders. This list is compiled keeping a number of factors under consideration, including interest rates, terms & conditions, terms of repayment, counseling & customer services, and student satisfaction. After exhausting federal options, students are recommended to make use of the lenders from this list.
What is the application process for the lowest interest rate student loans?
Federal loans are popular low interest student loans, as all you have to apply for them is fill out a FAFSA application online. Based on the information you provide, your need for aid and eligibility will be determined.
Why should I look for loans with low interest rates?
The real difference between a cheap student loan (e.g. institutional loans or federal student loans) and private student loans is that cheap student loans are given out on subsidized rates of interest. On the other hand, private student loans are given out by private lenders who treat student loans as just another form of loan, meaning the interest rates are not subsidized. Thus, when it comes to paying back private as opposed to institutional or federal loans, it can be quite costly.
How can I apply for student loans with low interest rates?
Usually student loans with low interest rates are federal loans. These loans have low interest rates because the government subsidizes them, as the aim of federal loans is to make education accessible and affordable for everyone. To apply for student loans with low interest rates, all you have to do is fill out the FAFSA, which can be found online at fafsa.ed.gov.
Types of Student Loans
- 911 GI Bill
- All Interest
- Credit Union
- Flight school
- For Bad Credit
- For Community College
- For Graduate School
- For Single Mothers
- GI Bill
- Interest Free
- Law School
- Medical School
- No Cosigner
- No Credit
- Parent PLUS
- Post 911 GI Bill
- Private School
- Private with No Cosigner
- Without Cosigner