Student Loans have predominantly been the best available means of getting financial assistance for education making it an inevitable choice of many college goers. As a student, you never know what or how you might qualify for these loans until you go and visit the college Financial Aid Office, discuss with them your financial needs, and let them review your special circumstances.
The first thing any student should concentrate while applying for the students loan is to be aware of getting the best possible deal as this is not a charity but you are going to repay it after your graduation for a period of 25 years. When you are, actually studying in the college on student loans you do not have any idea about the future and you have no foresight of how much you will be earning in future so the student loans must be of the lower interest rate.
It does not matter whether you have secured federal student loans or private student loans interest is applicable to all loans at a rate called APR or Annual Percentage Rate. While shopping for the student loans one thing you have to keep it in mind is to look for the different fixed interest loans and student loans with variable interest rates. Often with fixed interest rates no matter how much time you take to repay the loan for this entire duration interest is charged at a fixed interest rate. On the other hand, with variable interest rates the APR changes according to the standard interest rate in the industry.
Often when you are chopping for the student loans, you are actually gambling over the interest rate and repayment schedule because 20 or 25 years is not a short duration and you never forecast the market conditions for the change in interest rate so early. However, this is entirely true that you will always end up paying less amount of interest for student loans having variable rate of interest than with those having fixed rate.
As of now the lowest interest rate available on any kind of student loans are federal student loans and that too Perkins Student Loans has the lower interest rates of 5% APR. So far, Perkins loans are considered as the best option for student loans as they have lower interest rates also provides a grace period of nine months for the installment of repayment after graduation. The critical point that has to be understood about the Perkins loans is they are available for only for the students who really does have hard financial circumstances and are in dire need of financial assistance to complete their studies.
The other Federal Student Loans option to tap in to is none other than, Stafford Loans having fixed interest rates but often lower than the interest applied by Private Student Loans. The one thing that draws students towards private student loans is their ability to grant more money as a student loans compared to federal student loans.