It depends on a few things like which loan you get (federal, private, subsidized, unsubsidized) and what your financial situation is, esp. credit report and score. Federal loans offer the lowest rate. subsidized federal loans (stafford) have their interest paid by the Gov't. unsubsidized federal loans do not, but the interest you pay is very low (6-7%) and you don't have to make any payments until 1 year after you graduate. Private loans have much higher interest rates and you must pay the interest regularly while you are in school. Private loans are especially dependent on your credit, so if your rockin' a 750, you should be ok...450, well, consider community college...its way cheaper!
If you can, pay interest during your grace period or periods of deferment/forbearance to avoid having interest capitalized (added to your principal) on unsubsidized loans, PLUS loans, and subsidized loans that have lost interest subsidy. Outstanding Balance1: $26,830 Interest Rate: 6.8 %
They are called loan sharks.
Unsecured loans to high-risk creditors for dubious purposes.
this answer is different from institution to institutions ... The Fed's board of governors raised the discount rate on loans made directly to banks by a quarter of a percentage point, to 0.75 percent from 0.50 percent ...Discount Rate.
It depends on whether the interest rate is a low introductory rate or a fixed rate. It also depends on how fast you plan to pay it off. The faster you pay it off, the less significant the rate of interest is.
The maximum interest rate for consolidating FEDERAL student loans is 8.25%. If your student loans are not federal loans, though, there is no maximum interest rate.
Personal loans should have a lower interest rate than student loans.
Information about the U.S. federal student loans interest rate can be found on the web. The best sites to seek this out are the government sites Student Aid and Direct Loans.
When bankers and investors use the term "student loan consolidation interest rate," they are referring to the interest rate that borrowers will be charged when they consolidate their student loans. Student loan consolidation allows borrowers to combine multiple loans into a single loan with a new interest rate, typically based on the weighted average of the interest rates of the loans being consolidated.
One benefit of consolidating your private and federal student loans is that it would lower your monthly payments. Another benefit of consolidating student loans is that the variable interest rate on the loan can be switched to a fixed interest rate.
In the USA, all Federally Guaranteed student loans have the same interest rate and same benefits. It does not matter if you get the loans from a private bank or directly from the government. Private student loans differ in interest rate and benefits for each bank. Federal Student loans have lower interest rates and better benefits than private student loans.
Federal loans are cheaper and have fixed interest rates. meaning that the rate will never change. However private student loans have variable interest rates which means that they can change. Private student loans has interest rate of about 12% (double that of a federal loan)
The best interest rate for student loans are LIBOR + 2.0% or PRIME - 0.50%, with no fees. These loans will usually only be available to those with a great credit rating.
Student loans have historically had some of the lowest interest rates in the country. It is usually cheaper to borrow money for college than for any other purpose, including buying a house. The interest rates charged on student loans vary by the type of loan, whether or not the student is in school, and whether the student is a graduate or undergraduate student. The interest rates also change from time to time.Stafford LoansStafford loans usually have the lowest interest rate of all student loans. The interest rate charge on all Stafford loans changes on July 1 of each year. The rate is based off of the yield of the one-year constant Treasury Bill for the week that ended on or near June 26 of the same year. The interest rate for Subsidized Stafford Loans is usually slightly less than that for Unsubsidized Stafford Loans. There is no difference between the in-school and repayment interest rates. The current interest rate for Stafford loans is 6.80 percent.PLUS LoansThe interest rate for all PLUS loans is always higher than that of Subsidized Stafford Loans. It usually runs about one percentage point higher. The rate also changes on July 1 every year and is calculated on the same basis as that of Stafford Loans. There is no difference between the in-school and repayment interest rates.Perkins LoansPerkins Loans currently have an interest rate of five percent. This rate rarely changes. Sometimes it is higher than that charged by Stafford loans, and sometimes it is less. Interest is not charged while the borrower remains in school, so the rate applies to the repayment period only.Private LoansUnlike federal student loans, the interest rates charged on private student loans are not regulated by law. The interest rate on these loans can range anywhere from two percent to fifteen percent. Each bank sets its own rate or rates. The interest rate charged on any particular loan often depends on the borrower's credit rating. Some banks charge a different interest while the student is in school and some do not.
The private student loans are the loans arranged by the student through any of the private banks at a fixed interest rate. To apply to these private student loans you need a cosigner unless your credit rating is too good and you have a source of income.
In the US, the interest rate on Federally Guaranteed student loans is variable. The rate changes on July 1 of each year. The interest rate is calculated with a formula and uses the 91-day T-Bill rate on the last auction date of May.
The answer depends on the relative interest rate and re-payment options of the various loans involved. If the student loans were achieved at favorable interest rates, it may make more sense to not consolidate them with loans that bear higher rates of interest.