Tips to Get Low Interest Rate Student Loans in 2013-14
The cost of college has risen so sharply that few students can pay all their bills with scholarships, savings or earnings. Most have to borrow at least a little bit.
While no one likes to borrow, the good news is that today's federal student loans are much easier on students than those of the past.
Federal student loans are generally the best type of student loans you can get.
They offer better terms than private loans and don't require parents to co-sign in order to guarantee that the loan will be paid (although parents generally must provide their financial information on the Free Application for Federal Student Aid form anyway).
Most People can get low interest rate student loans. Obtaining a low interest student loan has many benefits as compared to some of the other loans. Private student loans can sometimes cost you double than what a government-backed student loan will. The benefits of low interest loans are obvious. The lower the interest rate the lower your monthly payments will be. In many instances you can save hundreds of dollars a month or thousands of dollars during the length of the loan. Some of the best places to seek low interest rate student loans are from the federal government.
In this blog you find 5 options for student loan
Here are two best Interest Rate Student Loans:
1. Stafford loan
2. Perkins loan
1. Federal Stafford Loans
Undergraduate students can use Federal Stafford loans for their studies. Some of these loans have fixed interest rates as low as 3.40%. Stafford loans can be used to pay for tuition as well as living expenses while attending college. Applying for a Stafford loan is very easy. All you have to do is fill out an application and wait a short period of time to hear whether you qualify are not. Some of the benefits of obtaining a Stafford loan are some of the amazing repayment options that exist. Some of these options include deferments as well as options for loan consolidations. There are many different resources that exist for students that are looking to obtain a Stafford loan.
Stafford Loan Information: Benefits
- Low fixed interest rate - Stafford loan rates for the 2012-2013 school year are as low as 3.4%
- Increased borrowing limits - up to $20,500 per year depending on degree status and years in school
- No payments while enrolled in school
- Acceptance not based on credit
Stafford Loan Information: Eligibility
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen accepted for enrollment or attending a school that participates in the Federal Family Education Loan Program. Additionally:- You must have submitted a FAFSA to be eligible for a Stafford loan
- For subsidized Stafford, you must have financial need as determined by your school
- You must be enrolled or plan to enroll at least half time
2. Perkins Student Loan
If you are in substantial financial to pursue your college education you can apply for Perkins Student Loan. In order to qualify for a Perkins loan you will have to fill out an application and prove your financial situation. These are some of the best and most affordable loans that are offered by the United States
Borrowing Limits
Depending on when the student applies, their level of need and the school's funding level, the borrowing limits are:
- $4,000 for each year of undergraduate study (the maximum a student can borrow as an undergraduate is $27,500)
- $8,000 for each year of graduate or professional study (the maximum a student can borrow as a graduate/professional student is $60,000, including any Federal Perkins Loans borrowed as an undergraduate)
There is 3rd option, which is not as popular other two are:
3. Banking institutions and Low Interest Rate Student Loans
Many banks offer private student loans to their customers. Some of these loans have low interest rates. These loans are not as flexible as some of the others that we have previously discussed, but they can be helpful if you do not qualify for a federal student loan. The only way to get competitive interest rates with a private student loan is if you have elite credit. This does not mean that you cannot obtain a loan if you have bad credit. It just means that you’re going to have to pay a higher interest rate. If you are looking for a low interest private student loan you will want to check your credit before you apply. Normally if your credit score is above 720 you have a great chance of obtaining a good interest rate.
Attending college can be one of the best decisions that a person makes in their lifetime. Obtaining low interest rate loans to pay for your college intuition can be just as important. Knowing that there are many different options at your disposal can help you get the money that you need at a reasonable rate.
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4. Some other Low interest rate options
Low-interest alternative student loans
Name
|
Qualifications
|
APR
|
Students in Georgia with a 2.0+ GPA who have exhausted all other aid programs, including the parent PLUS loan.
|
1.00%
| |
Students with a 2.0+ GPA and a cosigner.
|
2% while in school, 6% after graduation
| |
Students from Northeast Indiana who have a 2.75+ GPA. Those who graduate and work in the area can get up to 75% of the loan forgiven.
|
3.25%
|
5. Lastly In Interest-Free Loans
Unfortunately, it can be tricky to track down these bargain student loans. So to help students find them, CNNmoney.com is posting the web's most complete list of organizations offering them in 2012 below. Students who don't qualify for these options might ask at their religious institutions as well as local chapters of Rotary Clubs; your college financial aid officers may also know of other sources.
Name
|
Who qualifies
|
Maximum annual loan
|
Have to make payments while in school?
|
# of loans expected in 2012-13
|
Residents of Massachusetts with need attending participating colleges
|
$4,000
|
No
|
1,700
| |
Children of military personnel
|
$5,500
|
No
|
1,700
| |
Abe and Annie Seibel Foundation
(409) 770-5665 |
Residents of Texas with need and good grades
|
$6,000
|
$50/month
|
900
|
Residents of St. Louis with need
|
$14,000
|
No
|
660
| |
Residents of Los Angeles with two cosigners
|
$3,500
|
$75/month
|
650
| |
Jewish students from Northern California (although a non-sectarian loan is being developed.)
|
$6,000
|
Yes
|
250
| |
Jewish students in the South with need and one cosigner
|
Student's remaining need after all other aid.
|
No
|
150
| |
Jewish students in Michigan with a cosigner
|
$4,000
|
$50/year
|
112
| |
Citizens of Latin American or Caribbean countries who have cosigners and will return to their homelands.
|
$15,000
|
No
|
100
| |
Students who are eligible for a Pell grant, paying in-state tuition, and have excellent grades and test scores. (Law students excluded.)
|
$15,000
|
No
|
83
| |
Residents of Maryand with GPA 2.0+ and cosigner
|
$10,000
|
No
|
75
| |
Residents of Northeast Ohio with cosigner
|
$2,500
|
$75/month
|
60
| |
U.S. citizens who have finished freshman year of college
|
No maximum, but average is $2,000
|
No
|
50
| |
Jewish residents of Arizona
|
$5,000
|
At least $50/month
|
35
| |
Residents of Milwaukee with up to two cosigners
|
$3,600
|
Yes
|
24
| |
Residents of Livermore, CA
|
$2,500
|
No
|
20
| |
Residents of of Amesbury, MA with parent cosigner
|
$1,000
|
No
|
15
| |
Residents of Cheshire County who are upperclassmen
|
$2,500
|
No
|
4
| |
California no-interest loan (formerly known as the Weingart no-interest loan)
|
Students at participating California colleges with need (For information, ask your college's financial aid office.)
|
$4,000
|
No
|
NA
|
Jewish students in Dallas area with 2.5+ GPA and two cosigners
|
$4,000
|
$75/month
|
NA
| |
Residents of Santa Barbara area with 2.0+ GPA and need
|
$5,000
|
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