When it comes to student loans for college, the interest rate on the student loan is perhaps the most important factor to consider. The lower the interest rate on the student loan, the less money you will have to pay back over the lifetime of the loan. Here are 5 steps to obtaining the lowest interest student loans.
When it comes to finding the lowest interest rate student loans, federal student loans will be your best option. Federal student loans offer some of the best interest rates, and repayment options to students, and they are not based upon the borrowers credit. In order to apply for federal student loans, visit fafsa.gov and file the Free Application For Federal Student Aid.
Many students will also be considering a private student loan in addition to what they receive from federal financial aid and other college funding resources (scholarships and grants). Private student loans are based upon credit, so the key to obtaining the lowest interest student loans from a private lender will be to have excellent credit. Many college students suffer from lack of credit, one way to build a good credit history is to put some bills in your name, and make certain to pay those bills on time.
For borrowers with poor credit or little credit history, obtaining a creditworthy cosigner will help you secure the lowest interest student loans (private student loans). If you have a cosigner with excellent credit, this will help lower the interest rates when obtaining private student loans. If you do have poor credit, securing private student loans without a cosigner will be difficult.
While you do not want to apply for multiple private student loans over an extended period of time (this could be bad for your credit), you do want to compare private student loan products offered by different lenders. Select a few private lenders, and compare the interest rates they offer.
Most agree that a fixed rate student loan is better over the long term. Most private student loans offer variable interest rates (interest rates which can fluctuate over the lifetime of the loan), however when it comes time to repay your student loans, you may consider consolidating your student loans in to a fixed interest rate consolidation loan.
If you have a child or children gearing up for college, chances…
Tips On Finding The Best Student Loans For CollegeBefore considering any student loans, it is highly recommended that students exhaust…
Loans For Unemployed StudentsQ: Are there loans for unemployed students, or will a student not…
5 Things To Avoid When Dealing With Student LoansIf you are planning on attending college, chances are you will need…
How To Pay For College Without Parents HelpQ: I am 18 years old and have been accepted into college…
Get A Student Loan To Buy A CarQ: I am in college and would like to purchase a car….
How Much Can I Borrow In Student LoansHow much can I borrow in student loans for college? This is…
Q: Can I get a student loan if I defaulted on a…
When choosing a college or school, understanding and evaluating the schools financial…
Do I have to pay back my student loans if I don’t…
Q: I will be attending college next year and am a little…
Q: I am 18 years old and have been accepted into college…
Have a college financial aid question? CollegeWhale.com is full on answers! Type your question in the search box to get started.
Sign up for The CollegeWhale.com Weekly Scholarship Round-Up, and let us bring the scholarships to you! Get a list of new available college scholarships delivered to your inbox each week.
sign up