How To Find The Best Student Loans And Rates
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Paying for college is already challenging enough, but then you have to think about finding the best student loans and student loan rates, and it can just be daunting. How do you find a lender? What should you think about? How do you know you’re getting a good deal? It can all be overwhelming.
When I was in college, there weren’t a lot of options. If you got Federal loans, you filled out your FAFSA and waited for your email from the financial aid office. If you were looking for private loans, you went to a major bank.
Let’s take a look at how to find the best student loans and rates and what you should consider before borrowing. If you’re just “ready to go”, jump to Credible and compare the best private student loan options right now in 2 minutes or less.
Federal vs. Private Student Loans
The first thing to understand is that you don’t get a choice in your student loan rates with Federal loans. Federal student loan rates are set by the government and change periodically.
However, for most people borrowing Federal student loans, that doesn’t matter because they are trying to take advantage of the special student loan repayment programs or loan forgiveness plans that come with Federal student loans.
Federal student loan interest rates vary, from as low as 4.53% to as high as 7.6%. They actually decreased by roughly 10% this year. Check out this chart to see where you student loan interest rate may fall:
2021 – 2022 Student Loan Interest Rates
For many borrowers, Federal loans with be the best student loans. However, if you have great credit (or a cosigner with great credit), a private loan could potentially save you a lot of money.
Finding The Best Student Loans
We’ve reviewed most of the major student loan lenders and have a comparison tool here: Comparing Private Student Loan Lenders.
We also recommend really researching the different loan programs out there. There are a lot of lenders that offer different programs and incentives that can be helpful depending on the type of degree and what you believe your employment will look like after graduation.
- Interest Rate (the lower, the better)