By Shreya Biswas
Copyright indiatimes
Student loan rates in US
Student loan: Private student loan rates have fallen in recent weeks, which could be a great opportunity for student borrowers to take advantage of lower rates before they may increase once again, as per a report.Fixed-Rate Student Loans Fall to 7.00% – Lowest in MonthsDuring the week of September 8 through September 13, the average fixed interest rate for a 10-year private student loan was 7.00%, down 0.48 percentage points from the prior week’s 7.48%, as per a Forbes report. This is significant compared to this same time last year, when the average fixed rate was 7.95%, according to the report.For example, borrowing $20,000 at today’s average fixed rate would mean monthly payments around $232 and total interest of about $7,866 over 10 years, as per Forbes Advisor’s student loan calculator.ALSO READ: Who Is Luigi Mangione? Key facts about the suspect in Brian Thompson’s murder caseVariable Interest Rates Dip Sharply to 7.56%Variable-rate loans also declined. The average on a five-year variable private loan fell 2.14 percentage points to 7.56%. For a $20,000 loan, that would mean monthly payments in the range of $401 and total interest of around $4,080, although variable rates may vary over time, as per the Forbes report.Live EventsFixed vs Variable Rates: Which Student Loan Option Is Better?The variable interest rates fluctuate over the course of a loan term, which may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time. Private lenders often give borrowers the option to choose between fixed and variable interest rates. According to Forbes, fixed rates may be the safer option for the average student, but if a student’s income is stable and they plan to pay off their loan quickly, it could be beneficial to choose a variable loan.ALSO READ: Luigi Mangione appears in court today: Terrorist charges dropped in UnitedHealthcare CEO shooting casePrivate Loans Can Be Useful When Federal Aid Isn’t EnoughWhile private student loans could be a good option if a student has reached the annual borrowing limits for federal student loans, or if they’re otherwise ineligible for them, but federal student loans are reportedly better as the first option because interest rates are generally lower and offer liberal repayment and forgiveness options than with a private loan, as per the report.Guide to Applying for Private Student LoansTo apply for a private student loan, the person generally needs to apply directly through a non-federal lender, which includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities, according to Forbes. Borrowers also need a qualified co-signer if they have limited credit history, as undergraduates often do, as per the report.What to Check Before You Apply For Student LoansHere’s what student borrowers should consider when applying for a private student loan, as compiled by Forbes:Make sure that you qualify: Private student loans are credit-based, and lenders typically require a credit score in the high 600s and having a co-signer can be particularly beneficial, as per Forbes.Apply directly through lenders: You can apply directly to the lender’s website, via mail or over the phone, as per Forbes.Compare all options: Look at what each lender offers and compare the interest rate, term, future monthly payment, origination fee and late fee. Also, check to see if the lender offers a co-signer release so that the co-borrower can eventually come off the loan, as per Forbes.When choosing a private student loan, Forbes advises considering the overall cost of the loan, including interest rate and fees, and even considering the type of assistance each lender offers if you’re not able to make your loan payments.However, the best rates are only available to those with good or excellent credit, as per the report. The rate also depends on whether you’re getting a fixed or variable loan, and even other factors like income and the degree you are pursuing, and your career can have an impact, according to Forbes.Experts usually recommend borrowing no more than you’ll earn in your first year out of college, and some lenders cap the amount you can borrow each year, while others don’t, so when choosing a loan, talk to lenders about how the loan is disbursed and what costs it will cover, as per the Forbes report.FAQsAre private student loan rates lower right now?Yes, average rates have recently dropped for both fixed and variable private student loans.Where do I apply for a private student loan?Directly through the lender via online, by phone, or by mail.Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onstudent loan interest ratesStudent loanprivate loans vs federal loansprivate student loan ratesapply for private student loansfixed student loan ratesvariable student loan rateshow to apply for student loansbest private student loansstudent loan repayment options
(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
(You can now subscribe to our Economic Times WhatsApp channel)Read More News onstudent loan interest ratesStudent loanprivate loans vs federal loansprivate student loan ratesapply for private student loansfixed student loan ratesvariable student loan rateshow to apply for student loansbest private student loansstudent loan repayment options(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
Explore More Stories123
