Interest Rates: How They Affect Federal Loans Today and Tomorrow

Interest rates on student loans can make a huge difference in your monthly bill when it comes time for repayment. A low interest rate can save you hundreds of dollars a year and thousands of dollars over the lifetime of the loan. The good news is that current interest rates are very attractive, whether you’re looking at a private or federal loan.

Private Loans
The nightly news is full of stories about the beneficial interest rates banks and credit unions are charging. The bottom line is that an economy in recovery is great for borrowers. When you apply for a student loan through a private lender, your credit history and personal financial situation is carefully reviewed. The better your credit score, the lower the interest rate you’ll get. But with interest rates so low across the board, you’re still likely to receive a lower interest rate today than you would have a year or two ago, even if nothing ha