What is a student loan?
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, often as low as 2%. 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 rate student loans?
How do I apply for best rate student loans?
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.
Q: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.
Q:What are student loan consolidation interest rates?
A: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. The interest rate on a consolidate loan has an interest rate cap of 8.25%.
Q:What is a good interest rate on student loans?
A: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 co-signer.