Student loan debt is already high without having to put up with high student loan interest rates.
According to the Department of Education, U.S student loan debt, in total, stands at $1.64 trillion in 2020. On a per-student basis, the average student loan amount owed is $35,397. Rates of federal loans are standard, as follows for the 2020-2021 school year:
- Undergraduate borrowers 2.75 percent
- Graduate school borrowers 4.30 percent
- Parent borrowers 5.30 percent
Private student loan borrowers are another story. Interest rates for private student loan rates fluctuate from between 4.5 to 11 percent for fixed-rate loans and between 1.25 to 12 percent for variable-rate loans, depending on the lender and the borrower’s credit score.
Another commonality is getting the best rate deal possible, which usually means focusing on private student loans, which don’t have fixed standard rates like federal student loans. That means drawing a bead on lowering student loan interest rates, which can be easier said than done.
6 ways to cut student loan interest debt
There is no single best way to curb student loan interest rates. The good news is there are multiple ways to get the job done. Financial experts recommend focusing on the following student loan interest rate reduction strategies:
1. Refinance your loan
One of the best ways to reduce student loan interest is to continuously refinance your student loans with better interest rate deals. Visit Credible to see a rates table that allows you to easily compare fixed and variable rates from several private lenders…Read more>>