When it comes to Sun Loans Federal loans tend to have a lower interest rate and a fixed one as compared to the private student loans private can either be variable or sometimes even fixed however the variable rate loans have been seen too often tied directly to the Libor rate or prime and they are adjusted accordingly.
To get a better understanding please see the chart below about interest rates for federal student loans for the years of 2015 and 2016.
| Loan Type | Year | Interest Rate % |
|---|---|---|
| Direct Plus Loans (Graduate and Parents) | 2016 - 2017 2015 - 2016 | 0.0631 0.0684 |
| Direct Unsubsidized Loans for Graduates | 2016 - 2017 2015 - 2016 | 0.053 0.0584 |
| Direct Unsubsidized Loans for Undergraduate | 2016 - 2017 2015 - 2016 | 0.0376 0.0 429 |
| Direct Subsidized Loans for Undergraduate | 2016 - 2017 2015 - 2016 | 0.0376 0.0 429 |
The interest rate for the private student loans can be different in interest rates dependent on various factors like the lender the term and if the loan is a fixed or a variable rate it can also depend on your credit history and the debt to income ratio the current ongoing rate can vary from 2.5% all the way to 18%.
If you have any questions or would like to schedule a meeting, please feel free to email us at using the form below and we’ll get back to you right away.