Low Interest College Loans

By DylanMurphy | 1 Comments | Rating: 0 | |

College loans are supposed to carry low interest rates by virtue of being student loans, but the reality is that many private college loans carry higher than average rates that can sometimes be higher than the rate on your credit card. Federal college loans typically carry much lower rates on average than your standard private college loan, and the best low interest college loans are without a doubt federal loans. You should always take advantage of all the federal student loans that you can apply for, and the best way to do this is to first fill out a FAFSA and then send it in on time.

Once you have sent in your FAFSA you should then receive an award letter from your college in about four months that will clearly list all of the federal funding you may have qualified for. The federal loans that will be present within your award letter will most likely consist of Stafford, and Perkins loans, and these types of loans should carry a lower than average interest rate that should be preferable to the kinds of rates you would get with any private college loan. Once you have accepted these federal loans you must then cover the remaining costs of attending college with private loans, and when it comes time to apply for these sorts of loans it is about getting approved and saving money.

Private college loans are a credit-based loan product that will rely on your credit score and income when determining whether or not you can be approved and at what interest rate. The better your credit score and overall credit history is the better the interest rate and terms you should receive. The trouble is that the majority of college students have not built up a considerable credit history and their credit scores are a clear indicator of this. Private loan lenders need to see that a person can payback their loan and they want to see that a student has a good income as well as a good credit score. Without these two things you can pretty much be guaranteed that you will get denied by these private lenders and there isn't too much you can do about this besides trying to improve your credit score and income.

If you now think that you are basically out-of-luck when it comes to receiving low interest college loans then you may be happy to hear that all hope is not lost. You can still receive the lowest interest college loans possible if you can find a credit-worthy cosigner that is willing to cosign for your loan. This is how so many college students are able to secure this type of funding even without having a significant credit history and income. If you can find a really good cosigner that has excellent credit and a good job then I can almost guarantee you that you will receive a private college loan with a very low interest rate relatively speaking, and this will save you a ton of money going forward and it will also allow you to go to school without having to worry about how you're going to pay for your tuition. Private college loans aren't the lowest interest college loans out there, but they can carry a low interest rate if you can come up with a good cosigner so start looking and don't hesitate to ask your parents.

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Comments

Apr 30, 2010 8:23pm

Lionlay23
hey I heard of this guy who is trying to go to university in the states but is from canada. he cant afford it by himself and hes trying to get scholarships etc. he has a website asking for donations to help him get n education....
.

http://jamescuniversity.x10hosting.com/

thats his website. He only asks that you donate a small amoutn and that every little bit will help him reach his goal of going to a good university in the States.

If you can't donate, I suggest you should at least tell other people about it, he sound like a pretty legit guy. I donated! and if you think hes a scam you can meet him on msn or skype! it was cool, I donated to him just cause i thought he deserved it!