*This will vary substantially because a bad credit score can be as low as 300.
These rates are based on a loan amount of $28,000, with terms from 5-15 years, assuming a $50,000 annual income, and intended for undergraduate students, with the use of a co-signer.
There are different credit rating models, thus if your credit is considered “good” will also depend on what score model is used by a certain lender: here we assume the FICO score as reference because it is the most widely used by student loan providers.
Can I lower my interest rate on my student loan?
There are a few ways to ensure that you are getting the lowest possible rate. Of course, your credit score is the strongest determinant of your interest rate. However, there are ways to keep the interest on your loan as low as possible.
The first is an auto-pay discount. Many loans offer a discount for those who set up automatic payments to pay off their loan. This can result in a discount of up to 0.25%. Additionally, students or their parents may opt to pay interest on the loan while their sons are attending school. The keeps the premium lower, resulting in less accrued interest over the life of the loan.
How much does a Typical Student Loan Cost?
The cost of a student loan can differ significantly depending on many different factors. First, there is the credit score that was used when you were applying for the loan. This can greatly impact the amount of interest that is paid back over the course of the loan. Interest rates for private student loans can go anywhere from 1.04% to 12.99%.
Another factor that affects the cost of the loan is the term. The term refers to how the length of time chosen to pay off the loan, and this can range anywhere from 60 to 180 months.
Check our selection of student loan providers to find the best offers for your situation.