Interest Rates of Private College loan

College students couldn’t be thankful enough to the federal government because of the numerous loans made available to them.

Unfortunately, many of these students can only acquire so much of this government loans. When all federal financial means have been exhausted and yet there are still more college expenses that are needed to be covered, the students can always depend on a private college loan.

Indeed, when the federal government cannot anymore provide the financial assistance and aid, students can turn to private student loan to cover the rest of the school expenses.

Interest rate of private college loan compared to the federal type

Since the government does not have anything to do with private college loan and does not provide guarantee against any case of default, the private lenders such as banks and loan companies charge higher rates compared to federal loans.

Still, with the many existing private lending companies and institution existing today, competing for the huge market of college students in need of loans, the interest rate of private student loan is very much competitive, to the advantage of the student borrowers.