<p>My son got a very small financial aid package to the school he is going to and we would accept it however the interest rate is high (6.8). We only need to finance a small amount. Does anyone have a suggestion for a student loan with a lower interest rate that we can look into? Thanks.</p>
<p>Did your son receive a Stafford loan? I believe the interest rate on those for next year is below 5% (I could be wrong…but I think that is the case…and lower the following year).</p>
<p>Unasked-for advice:</p>
<p>Google “Karl’s calculator” to see the impact of different interest rates. (It says ‘mortgage calculator’, but can be used for student loans just as well.) It has sliders to change loan parameters and instantly recalculates interest and payments. If you don’t like the graph, click the Summary button.</p>
<p>A subsidized Stafford is 4.5% for the 2010-2011 school year. Unsubsidized Staffords are still 6.8% I’m afraid.</p>
<p>He got an unsubsidized loan at 6.8.%. Are there any other alternatives?</p>
<p>That is not actually a high rate. I think the only way you’ll beat that rate is if you refinance your house, and that is because the lien on the house is a substantial guarantee for repayment. As a student, it’s doubtful your son would qualify for a loan other than a Stafford on his own.</p>
<p>That is a low rate for an **unsecured **loan.</p>
<p>Haha, wow. I’m new to this whole loans thing, but I thought 6.8% was exceptionally good for a loan. Even my AP Econ teacher has said it. O_o;</p>
<p>I agree that it is a low rate for a unsecured loan. However, students loans are not like an unsecured loan. It is one of the most secure loans. you can’t get rid of it in bankruptcy and it follows you for ever. Even a mortgage sometimes doesn’t get paid back when the loan is highter than the value of the house. The student loan system needs a total revamp</p>
<p>It’s an unsecured loan given to people with little to no income and no credit history. There is some risk to it.</p>