For most students, the best choice to secure low-interest student loans is either unsubsidized or subsidized federal student loans.
These are typically cheaper than private loans, and they come with a variety of consumer protections.
However, due to the limit on how much money you can borrow, some students may take out private student loans to cover the gap.
We’ve listed the best student loan rates available for creditworthy borrowers. Below are the best student loans with low-interest rates.
Keep in mind that variable rates can change and that only the most creditworthy individuals will be able to receive the lowest rates.
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Best Student Loans With Low-Interest Rates
The following are the best student loans with low interest;
1. Ascent
Unlike other private lenders, Ascent offers a variety of payment postponement and reduction options.
Its graduated repayment plan allows borrowers to lower their monthly payments and start making more money over time.
This plan can be helpful for graduates who are just starting out and are likely to make more money as they move into their careers.
Those experiencing financial hardship can temporarily suspend their payments for up to three months.
This type of forbearance can help them avoid paying more interest, though it also means they’ll have to pay more for the loan over the next few years.
In addition, if you meet the requirements of Ascent’s graduation reward program, you can receive a 1% discount on the principal balance.
2. Federal Direct Subsidized Loans
Federal student loans are the most flexible and cheapest among graduate and undergraduate options.
These types of loans are issued by the government, and they will pay the interest on the money when the student is in school and when they put it into deferment or repayment. Only those who have financial needs can receive subsidized loans.
Unlike private loans, federal student loans are not required to have a co-signer. All eligible undergraduate students can qualify for these types of loans and have the same rate regardless of their credit history.
In addition, these types of loans can be used by people who work in the public service industry.
The 1.057% fee charged for initial student loan processing is lower than what other private lenders charge.
In certain circumstances, forbearance is also available for up to three years. One of the most effective ways to lower monthly payments and get loan forgiveness is through an income-driven repayment program.
3. Federal Direct Unsubsidized Loans
Unsubsidized federal student loans are available to all graduate and undergraduate students regardless of their financial needs.
These types of loans don’t come with a break on interest, similar to what subsidized loans do.
Before taking on unsubsidized loans, make sure you have exhausted the subsidized loans.
Unsubsidized student loan borrowers who are likely to get a lower interest rate on a private loan are missing out on some consumer protections.
4. College Ave
College Ave’s personal loan product is a solid choice for those looking to take out a long-term loan.
It comes with an eight-year term, which is longer than most lenders’ five, 10-, and 15-year terms.
Additionally, borrowers can extend their payment-free period after they leave school.
5. Discover
Unlike other private loan providers, Discover doesn’t charge late fees. It also provides a discount on the interest rate if the student makes payments while they’re in school. It also offers forbearance, hardship, and deferment options.
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6. Sallie Mae
A year’s graduated repayment period is a good option for those struggling with student loan payments. It can also reduce the interest rate. Students who are enrolled in school less than half-time can also qualify.
7. PNC Bank
One of the most effective ways to lower the interest rate on student loans is by making automatic payments. With the help of a loan modification, it can lower the monthly fee and reduce the interest rate.
8. SoFi
Although it’s best known for its student loan refinance services, SoFi also makes loans to graduate students and law students.
Its undergraduate product comes with multiple features and perks, such as no late fees and a 0.125% discount on the interest rate for those who use another SoFi product.
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9. Earnest Private Student Loan
For those looking for a flexible repayment plan, this product can allow them to skip one payment every 12 months. It also comes with a nine-month grace period, which is longer than most lenders.
10. Custom Choice Loan
This product is ideal for students looking to take advantage of the 2 percent Grad Reward.
It comes with a challenging credit check-free rate and no late fees. It also has a principal reduction of 2% if the student graduates.
