Student Loan Rates

Student Loan rates are generally lower than other traditional loans, as they are tailored for student borrowers and are meant to make college affordable. As a result, Student loan rates, namely the loan's Annual Percentage Rate (APR), are often quite low, which makes repaying the loan much easier for students. While researching student loans, be sure to look closely at the different student loan rates. You should also remember to pursue federal loans before private student loans, as federal student loan rates are almost always lower than private student loan rates.

Types of Student Loans with Low Interest Rates 
Federal student loans often have the lowest interest rates out of any student loans, with subsidized Stafford and Perkins loans standing out as having the lowest federal student loan rates. The Stafford Loan is a federal loan that has a low interest rate, relatively high borrowing limits, and is given out on the basis of financial need, not credit-worthiness. There are two types of Stafford loans: subsidized and unsubsidized, where the subsidized Stafford loan is disbursed on the basis of financial need, and the unsubsidized is given out regardless of financial need. The difference between the two loan types is that the government pays the interest that accumulates while you are in school on a subsidized Stafford loan, while it does not for an unsubsidized loan. Additionally, students who demonstrate exceptional financial need can qualify for a Federal Perkins Loan, which also has a low interest rate and is subsidized. If you qualify for a Perkins Loan, you will not only benefit by it being subsidized, but you will also enjoy a long grace period: you are not required to begin repayment on a Perkins Loan until nine months after graduation.

Benefits of Student Loans with Low Interest Rates
The obvious benefit of a student loan with a low interest rate is that the total cost of the loan will be relatively lower, though in some cases you may also find that your payment amounts and length are that much shorter that it will help you financially after college.   

Finding the Best Student Loan Rates
In order to obtain student loans with the best rates, you must thoroughly research your options, which is where SimpleTuition can help.  You should compare various loans; check out their rates, repayment terms, and other details before making a decision - and you can do all of this on our site. Doing the proper research will help you find the loan best for you. Federal student loans, such as Stafford loans, should be explored first, as they have a fixed rate of interest, and various private student loans with low interest rates are available as well.