There are many low interest student loans available. All you need to do is put some effort in finding these low interest student loans, and surely, you will find one suitable for your needs. More often than not, the alternatives that you’ll find are federal student loans as these are generally preferred for their low interest rates. Federal student loans have caps to the interest rates they give, regardless of the economic realities of the country. If you’re in the market for low interest student loans, then federal loans are the way to go.
Of course, not everyone may have the luxury of time to wait for a federal loan. These federal student loans are notoriously slow in processing. You might require a student loan right away for emergency needs, such as research fees. For these, you can opt for private student loans. These private loans have higher interest rates. However, you may find some providers offering fairer rates. Likewise, you may haggle down to a better interest rate if you have a loan guarantor. It is just a matter of taking time to find the loan that’s best for you.
Here are some tips on how to get low interest student loans:
1. Get the most from your available resources. This means asking your peers for loan alternatives. Most probably, you will find fellow students who are in the same boat as you. Check out the different finance companies that they’ve used, noting their interest rates, repayment terms and overall client feedback. Start your research with the finance companies that are highly recommended by your peers.
2. As much as possible, opt for federal loan providers instead of private loan providers. You will get lower interest rates with a federal loan, as well as more lenient repayment terms. You may even deduct a part of your student loan interest from your income tax returns. There are also good loan forgiveness programs where you get to work off your loan as a public service volunteer. Exhaust your federal loan possibilities first before opting for private loan options.
3. If you need a student loan fast, then private loan providers are your best alternative. Refer to your fellow students for good options here. Private student loans have higher interest rates. However, these do not have to be too much or have terms that are too strict. You can find some private loans with fair terms.
4. If you are opting for a private student loan, have a loan guarantor as much as possible. Finance companies consider this as added assurance and can offer you better loan terms.
5. Read your loan’s fine print first before signing anything. Some private loan providers may take your “need” for granted and slap you with so much hidden fees. Know what you’ll get first and make sure you are safe from loan scams, as much as possible.
6. Once you qualify for a loan, stick to the repayment terms and pay this off regularly. You build your credit score if you are diligent in your loan repayment.