What is a good student loan interest rate?

rising Education costs Today, incoming students have been borrowing money for college standards. In fact, the average cumulative student loan amount for bachelor’s degree recipients is $29,100. Latest information from College Board.

When you are already borrowing a large sum, score one Great interest rates Time can make a big difference in the amount you pay. And when today High interest rate environment Just because rates have gone up across the board doesn’t mean there aren’t good rates.

To ensure you’re being quoted a competitive rate on your student loan, it helps to understand the current market before starting your application process.

Does a private student loan make sense for you? Explore the options available to you here and learn more

What is a good student loan interest rate?

The difference between student loan rates Federal and private loans. Federal student loan rates are fixed and depend on your loan type and academic year. If you borrow between July 2023 and 2024, Here’s what you pay:

• Direct Subsidized or Unsubsidized Loans (For Graduate Students): 5.50%
• Direct Unsubsidized Loans (For Graduate or Professional Students): 7.05%
• Direct PLUS Loan (for parents, graduate or professional students): 8.05%

If you don’t qualify for a federal student loan or your federal loan doesn’t cover all of your expenses, Private student loans Could be a good alternative. There is a lot of variability in the rates that these loans offer and the rates can depend on a number of factors. Private student loan rates can also be fixed or variable.

Below are some of the best student loan rates available as of July 14, 2023 These rates include discounts for automatic payments

Undergraduate:

• College Ave: 5.29% – 15.99% (Variable APR) or 4.42% – 15.99% (Fixed APR)
• SoFi: 5.49% – 13.97% (Variable APR) or 4.49% – 14.70% (Fixed APR)
• seriousness: 5.32% – 16.20% (Variable APR) or 4.43% – 15.90% (Fixed APR)
• Discover: 6.37% – 16.62% (Variable APR) or 4.49% – 14.49% (Fixed APR)

Graduation:

• College Ave: 5.29% – 14.49% (Variable APR) or 4.42% – 14.49% (Fixed APR)
• SoFi: 5.99% – 13.97% (Variable APR) or 4.99% – 14.48% (Fixed APR)
• seriousness: 5.66% – 15.97% (Variable APR) or 4.45% – 14.30% (Fixed APR)
• Discover: 6.37% – 16.37% (Variable APR) or 5.24% -14.59% (Fixed APR)

Compare more of today’s top rates and see what you can qualify for now!

How to get a good private student loan rate

If you are considering using Private student loans To finance a portion of your education costs, there are things you can do to increase your chances Qualifying for the best rates.

First, it helps to understand how rates can differ based on the type of loan you choose. For example, student loans with fixed rates offer lower starting rates, while variable-rate loans may start higher, but you may benefit from a variable rate if interest rates drop in the future.

Along the same lines, a shorter loan term can have lower interest rates, even if you accept higher monthly payments. With a longer loan term, you can pay less monthly but more over time.

Additionally, some lenders offer lower rates on private student loans with cosigners. Adding a cosigner to your loan can help you appear less vulnerable to lenders.

Both you and your cosigner (if you use one) should see your credit score and credit report before applying for any loan, so you can take steps to get started. Improve your credit If needed.

Finally, as with any loan, you should Compare multiple lenders Before you agree to a loan. When you pre-qualify with different lenders, you may find that you qualify for better terms with one over another. Just make sure you do the pre-qualification check using the same information and loan type.

Start comparing private student loans you qualify for today.

Bottom line

Whether you’re an undergraduate, graduate, or professional student, financing your education can cost a lot of money. But even if borrowing money is necessary, you can still save by securing the best possible loan rate.

If you qualify for federal student loans, you can access competitive fixed rates. But if you need to supplement your financing Private student loans, look for lenders with starting rates around 5% APR or lower. With a solid loan application and some research into the type of loan that’s right for you, you can save money on lower rates over the life of your loan.