If you want to find the finest options for paying for your education, you must be aware of the typical interest rates on student loans nowadays. Options can be private and federal student loans.
Know the advantages and disadvantages of private and federal student loans in financing your education. (Source: CBS News)
Both Private and Federal Student Loans are Expensive
While federal and private student loans can be expensive if you’re not diligent, they can also be a useful tool for financing your education after you’ve exhausted other possibilities like federal grants and scholarships. In a published article by CBS News, it can be difficult to keep up with the payments as your loan sum increases and the interest on it can compound quickly, especially in a difficult financial climate.
Fortunately, a temporary federal student loan interest stops and a hold on federal student loan repayments provided some relief for millions of student loan debtors throughout the pandemic. However, interest on federal student loans is set to start up again on September 1 and payments will once more be due starting in October. Calculate whether student loan refinancing could save you money if you’re concerned that the high-interest rates on your current student loans are eating into your budget.
And if you’re still relying on loans to pay for your education, the good news is that private student loan interest rates are decreasing. However, being fully aware of current student loan interest rates might still make you more prepared for future repayment.
