|
Interest rates are currently below market; there is no need for collateral, and repayment can usually begin after graduation. However, repayment of the principal can be deferred until the student no longer meets the loan requirements of enrollment. Even with deferring payments, student loan rates are set annually and the interest begins to accrue from the time funds are disbursed. Although private student loan rates are usually not as competitive as those for federal loans, they are often useful for independent students who have limited borrowing potential.  |  |
While direct-to-consumer private loans usually carry slightly higher
interest rates than school-distributed loans. They allow families to
get access to funds in a timely fashion. In some cases, the student
loan funds can be received in a matter of days. Credit-based loans
have tiered student loan rates. This means that the better your credit
rating, the lower your interest rate will be. Students and families
with excellent credit will usually receive lower rates and smaller loan
origination fees than those with less-than-perfect credit.
Stafford loans are available to borrowers who can show financial
need. They are a standard "school certified" private college student
loan has somewhat lower fees and rates. When you use the student loan
consolidation service for your Stafford loans, you are locking in
today's low rates, combining multiple payments into one and lowering
your monthly payment. Stafford loans come with fixed interest rates
that are lower than most other forms of consumer financing. There are
no credit checks or application fees, and repayment is postponed until
you have graduated or dropped below half-time enrollment.
|
