Shopping around for student loans can be overwhelming, especially after going through the process of applying to FAFSA for federal loans. If you choose to cover additional educational costs with private loans, finding the loan that is right for you can be hard to do.
The debt settlement lawyers at McCarthy Law know that finding a loan with the best interest rate can be the difference between paying back what you owe and defaulting on your student loan repayment. The following tips will help you find loans with low-interest rates as you prepare to start this next chapter of your life at college.
What Are Current Student Loan Interest Rates?
Understanding current loan interest rates is important so you know what is fair when a lender offers a specific rate. With federal student loans, a fixed interest rate is released each year regardless of the borrower’s credit.
With private loans, the range of interest rates is much broader. Interest rates for private student loans can vary widely because they are based on the borrower’s credit. The following tips will help you get the lowest possible rate on a private student loan:
Get a Cosigner
Most students applying for college do not have excellent credit because they have not had a chance to build up credit at all. Because of this, you will likely get denied for a private student loan when applying on your own.
If you have someone in your life who has great credit and would be willing to be a cosigner on your loan, not only will it help you get approved, but it will also help you get a lower interest rate depending on how high their credit score is.
Do not go for the very first loan provider you find. When it comes to private loan lenders, each one is different and offers different characteristics. For example, aside from looking for low-interest rates, some private loan providers have other attractive qualities. Many private lenders offer competitively low interest rates and grant borrowers cashback rewards if they achieve good grades during the semester.
Sign Up for Autopay
Many private loan lenders offer reductions to your interest rate when signing up for an autopay reduction for your monthly payment. This is a great way to knock down that interest rate further and has the bonus of not having to remember to pay your monthly bill.
Take Advantage of Any Discounts
Some lenders offer extra discounts that you should utilize if you qualify to use them. The following are some of the common extra discounts offered:
- Promotional discounts
- Loyalty discounts
- Discounts for opting in for interest-only payments
Choose the Shortest Loan Term
For the most part, you will get a lower rate when you choose the shortest loan term. Since you will also be paying interest for a shorter period of time, you will be saving money overall.
Get Student Loan Debt Help from Experienced Arizona Lawyer
Even finding the lowest interest rates for your student loans can still leave you with a lot of money to owe back, depending on the amount you borrow. When the time comes to pay back what you owe, you may need the help of the experienced debt settlement lawyers at McCarthy Law to keep you from defaulting on your payments.
With McCarthy Law’s experience in debt consolidation and debt settlement, you will get the personalized care you need to handle your debt case. For a free case evaluation, fill out our contact form here or call (855) 976-5777.