Home | Loans
If you are searching for a student loan you ought to apply for one with a low-interest rate. This will make a huge difference especially with student loans, as they are usually large. Getting the lowest interest rate you can is very important. It'll save you a great deal of money. For instance, if somebody gets a 6,000 dollar five-year loan that has an interest rate of 10%, his monthly payment will be $127.48. Whereas, if another college student gets the same exact loan for the same exact time period (5 years) with 6% interest his monthly payment will be only $116. Thats over $10 a month difference! When 5 years is up, the guy who obtained a 10% interest rate will have paid $688.86 more than the guy with a 6% interest rate. That's a lot of money, especially for college students. Finding a low interest student loan may be a little tricky but well worth it. To help you, here's what you'll need to get a low-rate loan: -Collateral: Generally banks approve loans faster if the borrower pledges their house or vehicle as collateral. The problem is that the majority of college students do not have houses and a few do not own cars. If you are one of those students who does not have a house, car, or other form of collateral, think about asking your parents to take out a loan for you. -Maintain a high credit score: If you have proved in the past that you can repay loans (whether credit card or other) banks will be more likely to lend you money because they feel a greater security in getting it back. -Proof of successfully closing loans: If you have successfully paid off a past loan, take proof of it to your lender. -Be employed: If a bank is certain that you have a way to repay them, it will increase your chances of getting a low-interest loan. Federal student loans like the Stafford or Perkins loan generally have lower interest rates than private student loans. Stafford college loans provide interest rates that are lower than a private loan or alternative student loan, but a little higher than the Perkins loan rate. Stafford student loans are available to students enrolled in college no less than part-time and the Stafford loan an interest rate that is adjusted once a year. Perkins Loans offer a low interest rate of only 5%, and are available on a first come first serve basis. However, these loans are available only to students who are a terrible condition financially. These payments are scheduled over a 10 year period and can be discharged in particular circumstances. Low rate student loans can be found if you understand where to look and what makes you eligible. NOTE: Use of this article requires links to be intact.
Article Source: http://www.financemanual.com
Elise Fisher loves writing articles that help college students understand how to pay for all the many expenses college brings. She has also built a website that helps college students understand everything they need to know About Student Loans. Make sure you visit the Low Interest Student Loans page.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
