I looked on the internet for student loans but the lowest APR i found was 7.25% which is pretty high in my book. Does anybody know of a lower rate and where i can apply for it asap?
2006-08-07 21:16:54 · 5 answers · asked by abjr_86 1 in Education & Reference ➔ Financial Aid
The lowest rates you'll find will be for *federal* student loans. Beginning last month, all new Stafford loans will be at a fixed rate of 6.8% and PLUS Loans will be fixed at 8.5%. Perkins Loans will remain fixed at 5%. Lenders often offer additional incentives of their own to bring these fixed rates down (sometimes by .25%, other times as much as 2%). Always pursue these options first before seeking private loan funding.
Most private student loans that you'll find will be based on the Wall Street Journal Prime rate or London Interbank Offering Rate (LIBOR). For example, you'll see plenty of private loans that will say "Rates as low as Prime + 0%." However, because Prime (and LIBOR) varies, so will your student loan's interest rate. Prime is currently at about 8.25% -- so the 7.25% rate that you're seeing is actually pretty good.
Finally, if you must borrow a private loan, make sure you use a creditworthy cosigner. This is the easiest way to lower your rate.
2006-08-08 07:00:40 · answer #1 · answered by FinAidGrrl 5 · 2⤊ 0⤋
Have you filed the FAFSA and are you eligible for either of the Stafford Loans or the Perkins Loan? I would check into that first. If not, your best bet is to shop around. Look for a fixed rate (because most loans will be based on prime rate and then your credit score, and the interest rate can change over time). Most alternative student loans (private) will accrue interest while you are in school, but you don't have to start repaying the alternative student loan until you are no longer a student (whether you graduate or just stop attending school).
2006-08-08 05:40:03 · answer #2 · answered by MyAngelLou 2 · 0⤊ 0⤋
get a student loan such as a Stafford or Perkins --- they are about the lowest interest rate loans you can get. other than that , you could borrow against a credit card during a promotional "for life" interest rate which can be as low as 4%. The biggest advantage to the student loans are that they are interest free while you are a student and are a tax right off when you atart to pay for them. College is expensive no matter how you finance it. best of luck.
2006-08-07 21:25:47 · answer #3 · answered by daddyspanksalot 5 · 0⤊ 0⤋
i could actual advise for all college scholars now to not get a mastercard at the same time as in college. it truly is merely too undemanding for school scholars to value products and postpone paying it off, getting into monetary problem that could very last for years. yet, in case you receives yet another mastercard, attempt to discover one with a series pastime fee and to analyze for one which is the bottom you'll hit upon. it truly is going to haven't any annual value. and per chance one which promises factors or bonuses for spending.
2016-11-23 15:33:04 · answer #4 · answered by simmers 4 · 0⤊ 0⤋
You can find the best rates around at: http://www.myrichuncle.com
2006-08-08 05:55:46 · answer #5 · answered by The Doc 2 · 0⤊ 1⤋