How to get the best student loan rates, according to experts

with today The skyrocketing cost of educationThis can help you start your financial planning as soon as possible.

Financial scholarships are always a great place to start and Federal student loans Can offer the most favorable terms, possible forgiveness and flexible repayment plans. But private student loans can also be a good option for students who don’t otherwise qualify or who need additional funding.

in the stream High interest rate environmentHowever, the student loans you qualify for can have a big impact on your future payment plan. That is why it is important to confirm your score Best rate possible So that you can reduce your debt throughout the repayment process.

Start comparing the top student loan options today to find out how much you can borrow.

How to get the best student loan rates

You are considering adoption Private student loans This year, we’ve gathered some tips from the experts that can help you qualify for competitive rates.

Work on your credit score

If you still have some time before applying for your student loan, now is an ideal time to make sure your credit is in good standing. Creditors use you Credit score And credit history is one of the most important factors in determining the loan and interest rate you qualify for.

“To secure a low rate in today’s environment, student borrowers with good credit history, a strong credit score and income associated with the loan balance will be more competitive,” said Cecil Staton, CFP, president of Arch Financial Planning and wealth advisor.

Start by looking at your credit score (which you can usually access through your bank or even credit card account) and look over your credit report for any errors or potential fraud. per Improve your score Over time, make sure you make monthly payments on time and in full, keep your credit utilization low, and don’t open other loans or lines of credit close to the date you plan to submit your student loan application.

See the loan terms you may qualify for and start exploring your options today!

Compare lenders

When borrowing any type of loan – student loans, personal loans or even home mortgages – shopping around is one of the best ways to ensure you get the best loan terms.

“Borrowers should evaluate different student loan companies before choosing one,” says Joseph Schmidt, CFP, founder of Sunrise Personal Finance. “The same borrower can get very different interest rates from different lenders.”

Not only can you compare the range of rates each lender offers, but you can also see the rates you qualify for using information like your credit score, income and amount borrowed. Check pre-qualification options to get a more accurate appraisal (without hurting your credit score) and compare three or more different lenders.

“Federal loan rates are set, so there’s no real power to get a better or worse rate,” said Jared Andreoli, CFP, founder of Simplicity Financial. “For private loans, you really should shop around; better rates can be found.” Andreoli recommends building your credit and even considering a co-signer for the loan. “All of these areas can affect your student loan rate.”

Find the right loan term

Another thing to consider is the loan term — or the length of time you borrow money for — to figure out Best student loan rates.

“Another important consideration is the term of the loan, or the number of years you have to repay the loan,” says Staton. “Generally, the shorter the term of the loan, the lower your interest rate can be.”

Mortgages work the same way: 30-year mortgages, on average, have higher interest rates than 15-year mortgages.

“The caveat is that the shorter the loan term, the higher the payment you’ll need,” Staton adds.

Even with low interest rates, you may have higher monthly payments for a shorter period of time to pay off the loan. Make sure you read the full terms and conditions of your loan before signing so you know exactly what to expect when you pay.

Learn more about student loan options you may qualify for today here.

Bottom line

Private Student Loans Education can be an expensive option for spending. But whether you use them on your own or combine them with a federal loan, there are ways to make sure you get the best possible rate among lenders today. Make sure you take the time to apply with the best credit score, shop around to find out what you may qualify for, and choose a loan term that fits your needs. Start exploring your student loan options today and see how much you may qualify for.