Low Interest Student Loans
If you really want to succeed in your professional life, then it is essential that you hold a quality college degree. However, college education is not cheap, and many students and their families all over the country face the integral issue of financing it. One way to cross this challenge is by applying for financial aid. If your Free Application for Federal Student Aid (FAFSA) truly displays financial need, then there are great chances that you’ll be granted aid in the form of grants, work-study programs, and federal low interest student loans. Federal loans are usually the lowest interest student loans, and this is why students consider them the best option among student loans.
Types of Federal Student Loans with Low Interest
Federal student loans generally have very low interests. Consider their Perkins Loan with fixed 5% interest rate. Students in extreme financial need are granted this loan. A huge advantage of this loan is that it is subsidized, which means that the interest amount during the student’s education and the 9 months grace period is paid by the federal government. Other federal student loans with low interest rate include the subsidized version of the Stafford Loan. The interest rate is fixed at 3.4% and, like the Perkins Loan, the interest during college and 6 months grace period is paid by the government. However, the subsidized version of the Stafford Loan is only given to students with financial need proven by the FAFSA.
Low Interest Private Student Loans
Students whose financial need for covering college expenses is not completely covered by their financial aid package have to turn towards private loans. Although it is difficult but still not impossible to find low interest rates in student loans among the private sector. The rule of the thumb is to search, search, and search; then, compare all your options. Some financial organizations like the Discover Bank may have quite low variable interest rates touching as low as 3.25%. However, make sure to have a cosigner or collateral as these have a significant impact on the size of the interest rate; they may fulfill your goal of finding the lowest student loan rates among the private sector.