How to get great student loan rates now

Several Federal Reserves Increase in interest rates Made everything from last year buy a house Credit card debt is more expensive to pay down. For students, that means borrowing money for college is more expensive.

Fortunately, if you’re planning to apply for student loans this year, there are still ways you can get a competitive interest rate. You may be able to Qualify for rates As low as around 5% APR, although rates can be as high as 15%, depending on the details of your application. And can score the best rates possible this year Save you a lot of money over time — The lower your interest rate, the lower your monthly payments and the faster you can pay off your loan in full.

You start exploring eligible options right here

How to get the best student loan rates this year

Interest rates can be high across the board, but take these steps to make sure you qualify for the best student loan rates this year:

Compare different options

When it comes to student loans, it can pay to shop around. You may qualify for different interest rates with different lenders.

If you are considering Federal student loansThey carry fixed interest rates that range from 4.99% to 7.54% for the next year, depending on the type of loan you get.

for Private student loans, the lender you choose will have a big impact on your interest rate A good way to compare the rates available to you is to check pre-qualification. You can go to a lender’s website and enter your information, then find out if you qualify for a loan and a rate range. By checking your pre-qualification with a few different lenders, you can easily find the best interest rate for you.

You can get started by exploring the student loan rates available to you right here.

Decide between fixed and variable rates

Private student loans can come with fixed or variable interest rates, and the type of interest rate you choose can affect the overall amount you pay in the long run.

With a fixed interest rate, you can lock in your rate for the life of the loan. Given today’s rising rate environment, you may want to choose a fixed rate student loan so that you are not affected by any further interest rate hikes. Federal student loans all carry fixed interest rates. If you choose a private lender, some offer slightly lower interest rate limits than variable for certain loans.

Variable interest rates, on the other hand, change over time as interest rates move up or down. While we can’t predict the future, variable interest can be a good option if you believe that rates will drop before you pay off your loan in full and lower your overall payment.

Boost your credit score

Like other loan types, your Credit score Often plays a big role in where you can get student loans and the terms you qualify for.

A great credit score can increase your chances of qualifying for today’s best student loan rates — which can range from 4.5% to 5% APR for some lenders.

There are a few different factors that can go into your overall credit score, but making monthly payments in full and on time on any open credit account you own is a great place to start. If you have a credit card, make sure you keep your usage low and avoid spending close to your credit limit. Practicing good credit habits over time can help you build and maintain good credit that will help you get the best rate any time you borrow money.

If you’re still working on your credit, another way to qualify for the best rate is to apply with a co-signer who has great credit and can help you qualify. Start checking the rates you may qualify for now.

Take advantage of discounts

Some student loan providers offer discounts and incentives for certain activities that can help you lower your interest rate this year.

If you’ve already paid off your loan, you may be able to get your interest rate reduced by a certain percentage if you set up automatic payments each month. Some lenders also offer loyalty discounts for customers with existing loans or banking products with them. For example, SoFi discounts your interest rate by 0.125% if you or your co-signer is an existing SoFi member. Others offer incentives for good grades with GPA requirements.

Bottom line

Interest rates are up, but you can still save on student loans by making sure you qualify for the best rates available now. Make sure you compare different lenders, shop around for rates and qualify for any discounts you might qualify for. By scoring the best interest rate on your loan today, you can reduce your repayment period and overall loan amount, so you can pay off your loan more quickly over time.

Learn more about the student loan rates you may qualify for in your area today.