When it comes to finding the best private student loan rates for YOU, I give the same advice over and over - SHOP AROUND!
I can't tell you which lender will give you the best rate. That's because each lender has their own credit algorithm for reviewing what's important to their business before offering borrowers a rate.
But I can tell you that private student loan rates have dropped considerably since this time last year.
I can also tell you that some private lenders are offering rates on student and parent loans that are less than the federal Parent Plus Loan.
After your student maxes out his/her federal student loan, you can either borrow with a: - Federal Parent Plus Loan (borrower is the parent)
- Private Student Loan (borrower is the student with cosigner)
- Private Parent Loan (borrower is the parent)
>> The Parent Plus Loan rate is 5.3% with an origination fee of 4.236%. (This means your interest rate is closer to 6.3% when you factor in the origination fee!)
>> Fixed rates on some private student loans and private parent loans are starting as low as 3.99%.
The entire Student Loan process can be so stressful, but I can't emphasize enough the importance of shopping around for the best interest rate and comparing all your options.
Don't be afraid that applying to multiple lenders will make a big dent in your credit score. When you apply for the same type of loan within a few weeks the credit bureaus know you are shopping for rates, so there's very little effect on your credit score.
Go to several of the lenders below to find out the rate they will offer you.
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