Finding the best student loans and current student loan interest rates can be daunting.
Paying for college is hard enough, but how to find a lender? What should you think about? How do you know that you are getting a good deal? All of this can be overwhelming.
To keep things simple, you should always borrow federal loans first and then private loans.
When I was in college, there weren't many options. If you received federal loans, you filled out your FAFSA and waited for your email from the financial aid office. If you were looking for private loans, you went to a large bank.
Everything has changed today. There are many possibilities, and it might be a challenge to compare them all. If you would like to receive an offer quickly, please contact our partner College Ave. You can get a quote in a few minutes and find some of the lowest student loan interest rates.
Federal and Private Student Loans
The first thing you need to understand is that with federal loans, you don't have a choice between your student loan installments. Federal student loan interest rates are set by the government and change regularly.
However, for most people who borrow federal student loans, it doesn't matter because they are trying to take advantage of the special student loan repayment programs or loan forgiveness plans that come with federal student loans.
Federal student loan interest rates vary from 4.993% to 7.543%. They have actually increased by more than a percentage this year. Take a look at the tables below to see where the interest rate on your federal student loan can go down:
Federal Student Loan Interest Rates 2024-2025
If you are planning to attend college in the fall, these rates apply to loans taken after July 1, 2024, but before July 1, 2025:
Interest rate increases by half a point continue a trend that began at the beginning of the recent times, after interest rates reached an all-time low. See StudentAid.gov more information on federal loans.
For many borrowers, federal loans are the best student loans. However, if you have an excellent loan (or a co-signer with an excellent loan), you may be able to save a lot of money on a private loan. However, you will lose government benefits (such as lending and income-based repayment) if you opt for a private loan.
If you are curious about what future student loan interest rates might look like, check out this guide: Predicting Future Student Loan Interest Rates.
Compare The Best Student Loan Interest Rates
The best private student loan interest rates range from 4.99% APR to over 16.99% APR, depending on a variety of factors, including your credit score, household income, your co-signer, and more.
We recommend using a service like Credible to compare the best student loan interest rates. Credible allows you to compare multiple lenders in about 2 minutes. It's quick and easy and gives you an insight into what you might be seeing for student loan interest rates.
Check it out here and see for yourself: credible comparison of private student loans.
Credible does not have all the available lenders, and it is important to look around. When buying a student loan, keep in mind that most banks and credit unions "gently pull" your loan at the first application. That's good. If you make all your credit purchases within 2 weeks, this should not affect your overall score.
If you make a formal request, the lender will make a hard move. You should not move on to this part until you are ready to leave.
Finally, keep in mind that it may take about 30 days for the application to be completed from start to finish. If you want to start college in August, you should probably have your loans ready by July at the recent. Start shopping now! The best private loans can be found here.
When I was in college, there weren't many options. If you received federal loans, you filled out your FAFSA and waited for your email from the financial aid office. If you were looking for private loans, you went to a large bank.
Everything has changed today. There are many possibilities, and it might be a challenge to compare them all. If you would like to receive an offer quickly, please contact our partner College Ave. You can get a quote in a few minutes and find some of the lowest student loan interest rates.
Federal and Private Student Loans
The first thing you need to understand is that with federal loans, you don't have a choice between your student loan installments. Federal student loan interest rates are set by the government and change regularly.
However, for most people who borrow federal student loans, it doesn't matter because they are trying to take advantage of the special student loan repayment programs or loan forgiveness plans that come with federal student loans.
Federal student loan interest rates vary from 4.993% to 7.543%. They have actually increased by more than a percentage this year. Take a look at the tables below to see where the interest rate on your federal student loan can go down:
Federal Student Loan Interest Rates 2024-2025
If you are planning to attend college in the fall, these rates apply to loans taken after July 1, 2024, but before July 1, 2025:
Interest rate increases by half a point continue a trend that began at the beginning of the recent times, after interest rates reached an all-time low. See StudentAid.gov more information on federal loans.
For many borrowers, federal loans are the best student loans. However, if you have an excellent loan (or a co-signer with an excellent loan), you may be able to save a lot of money on a private loan. However, you will lose government benefits (such as lending and income-based repayment) if you opt for a private loan.
If you are curious about what future student loan interest rates might look like, check out this guide: Predicting Future Student Loan Interest Rates.
Compare The Best Student Loan Interest Rates
The best private student loan interest rates range from 4.99% APR to over 16.99% APR, depending on a variety of factors, including your credit score, household income, your co-signer, and more.
We recommend using a service like Credible to compare the best student loan interest rates. Credible allows you to compare multiple lenders in about 2 minutes. It's quick and easy and gives you an insight into what you might be seeing for student loan interest rates.
Check it out here and see for yourself: credible comparison of private student loans.
Credible does not have all the available lenders, and it is important to look around. When buying a student loan, keep in mind that most banks and credit unions "gently pull" your loan at the first application. That's good. If you make all your credit purchases within 2 weeks, this should not affect your overall score.
If you make a formal request, the lender will make a hard move. You should not move on to this part until you are ready to leave.
Finally, keep in mind that it may take about 30 days for the application to be completed from start to finish. If you want to start college in August, you should probably have your loans ready by July at the recent. Start shopping now! The best private loans can be found here. 
