Which bank has the lowest interest rate for student loans
Being in need of additional costs to cover educational expenses many students are opting for a loan.
Many banks and financial organizations offer various education financing programs enabling students and their parents to take loans with interest rate as low as 5.5%.
However, which bank to choose in order to escape financial serfdom? Which banks has the lowest interest rate for student loans?
What other features matter in student loans? Let us review the most reputable banks issuing the best 2015 student loan programs.
But first, we should understand what other factors apart from low interest rate do matter for you.
Grace period, max and min term of loans
Low interest rate makes any financial institution attractive for you to take a loan from. However the next features are as well of ultimate importance when you need to borrow a substantial sum of money from a bank or credit union.
- Grace period is a period of time from the moment of signing a loan contract and till the first expected payment. This is a period when payments from you are not needed.
- Maximum loan term is a period of time allowable to pay back the loan. Many banks give student loans for up to 20 years.
- Minimum loan term is a period through which you will have to pay the loan back. Commonly it is 6 month.
You should also know that banks and financial institutions revise their interest rates being very sensitive to the global financial shifts.
You will also need to find out a system if fines and fees for delayed payments as our lives are unpredictable.
So, which bank has the lowest interest rate for student loans?
Top three banks to take a student loan
The top rated student loan company is SoFi being one of the most competitive companies on the loan market.
The company will lend you up to 35 000$ up to 15 years. The SoFi company offers two peculiar features to secure your loan being unemployment protection and supporting of career. The rates of the bank vary from 3.63 to 7.74%.
Citizens Bank is one of the financial leaders of the US loan market. It offers up to 90 000$ up to 15 years. The interest rates are rather competitive to the rates of private credit unions.
If you have a good credit history in Citizens Bank then you will get a rate reduction.
The rate you may reckon upon varies between 5.75 and 11.75%.
Wells Fargo is another student loan leader. The company offers you up to 75 000$ for up to 15 years.
The interest rate will depend on the type of the rate (fixed or varied) and on your financial situation. The variable interest rate lies within 6.39 and 10.92%.