As the number of student loan borrowers continues to rise, it’s important to be aware of your interest rates. These rates are drastically increasing due to the low interest rates of the past several years. This article gives advice on how to handle when your rate is raised and how to make sure you’re paying off as much as possible.
What is my interest rate?
Interest rates vary depending on the type of loan, the amount of time it will take for you to pay off your debt, and your credit rating. Rates are usually published on the Department of Education’s website. If you have a private student loan, contact your lender to get their current rate.
Interest rates go up every year and get lower when you are in a repayment plan. If you have any questions about what your interest rate is or how it affects your loan, you can contact the loan holder or your servicer.
How do I find my current rate?
Interest rates on student loans are typically one-half to one percent higher than current federal interest rates. For example, the interest rate on a typical Stafford loan is 5.3%.
You can find your current interest rate by logging into your account. The borrower’s eligibility letter will also indicate what rates you may qualify for.
What can I do when my interest rates goes up?
If your interest rates goes up, there are things you can do to lower it. If you can’t lower it in the same year that it happens, then you need to put your loans into forbearance and your loan servicer will work with you to get the best outcome for your loans.
If you’re struggling to repay your student loan and interest rates are going up, there are a few options that may help. One option is to refinance your student loan with a lower rate. The other option is to get a forbearance or deferment on the loan, which will allow you to make smaller monthly payments without having to pay interest on the full balance of your loan.
You can save a lot of money with a student loan interest rate swap. Follow these steps to get the lowest rates on your loans.
The blog provides a list of questions to ask your lender, including how often they will call, how much information they will share with you, and how you can access the company’s website.