What Is A Good Interest Rate For Student Loans?

by Chad Agrawal

Are you considering availing of a student loan to get you through college? Even by starting out and going to community college first, you'll save tons of cash but to pay for that bachelors degree at any university, you might have to take a loan.

We all know how important college education is, especially for young aspirants who want to become professionals someday. In this competitive world today, a college graduate has an edge over undergraduates when it comes to job hiring and career opportunities.

However, college education is expensive, especially if you enroll in a private university. After winning some scholarships or grants for students, the only option you might have is a student loan, which is not so bad at all. So for those of you who are considering this option, you might ask what is a good interest rate for student loans.

Well, the interest on student loans is actually lesser compared to that of personal loans used for paying off a house or car. The interest rate for a student loan would usually start at around four percent. There are financial institutions and creditors that would offer rates of interest between four to ten percent, depending on certain factors such as credit rating, financial standing, source of income, and the economic condition at the time of filing the loan application. Of course, the lower the interest rate, the more advantageous it is on the part of the student.

Take note that a good interest rate would vary from time to time. Aside from the interest rate, the mode of payment, terms and conditions for paying off student loans also differ. This would all depend on the creditor or financial institution you apply to.

However, the longer it takes for you to pay off your student loan, the higher the interest rate becomes as it accumulates through time. If you want to save money in the long run, you can have a shorter repayment period with better interest rates.

If for instance, you think that you can’t afford to pay off your student loan because of the high interest rate, you can seek the advice of financial institutions or experts. Sometimes, they would consolidate student loans into just one loan at a lower rate of interest. Some banks, creditors, and lending institutions would offer that kind of option.

Another thing you also have to remember is that people with higher credit scores are given the opportunity to avail of better interest rates on their loans. As such, you have to make sure that you have a good credit standing before you apply for a student loan to have better chances of getting lower interest rates.

The lower the interest, the more money you can save. In addition, the quicker you can pay off that loan will help you in the long run. That is something you have to consider when applying for a student loan.

This article written by HowtoGetFinanced.com , hosts a websites that can get you some great advice when it comes to your most stressful money matters.

This post was written by Chad Agrawal

Chad Agrawal is the founder of CCTS, helping students transfer from community college to Ivy League, tier 1 or anywhere else by following this community college guide.

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