Their fixed interest rates start at 3.5% but can be as much as 7.74%.
The grace period on loans from private lenders varies widely, so it is important that you ask your lender how long you have before you start receiving a monthly bill.
Since many young college graduates have plans to purchase a car and perhaps even take out a mortgage on a home, learning how to reduce your student loan interest rate can help you better afford the other loans you take out in life.
If you had to take out a 0,000 student loan and were unfortunate enough to get stuck with an 8% annual interest rate, you may very well end up paying thousands and thousands of dollars in interest alone; that’s money that could have gone toward a down payment on your first home or to paying off your car loan.
Many 18-year-olds entering college don’t have much of a financial education, leading them to sign their name to a less than optimum student loan.While most students are simply interested in finding any type of student loan to finance their education, when it comes time to start paying those loans off, finding the best consolidation loan rates and refinance student loan rates is suddenly a much more urgent task.According to Student Loan Hero, “refinancing student loan balances with a private lender can lead to a significant reduction in student loan interest rates, especially if you have older student loans with interest rates that can range from 4.66% to 8.5% for federal loans.”Paying 8.5% on a loan can lead to a debt that can seem impossible to get out of. For private lenders, you can usually find a rate anywhere between 3% and 5%. If you choose a variable APR instead of a fixed rate loan, you may even qualify for interest rates as low as 2.2%.Student loan debt is a common problem among graduates.
According to the NCES, 13% of students in the repayment phase of their loans defaulted in 2013.Interest rates can change quickly, and in your haste to find a loan, you may have gotten a rotten interest rate.