How to Get Low Interest Student Loans

Low interest student loans are available through federal student loan sources as well as private sectors. Some loans are based on financial need, while others are available to almost anyone who is pursuing undergraduate education for the first time. If you qualify to have your government-backed Stafford and Perkins loans subsidized, taxpayers will even pay some of your interest for you. On the private side, you can beat bank's interest rates with social lending or peer to peer lending sites that offer student loans to users with good or excellent credit.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Computer
• Internet access
• Income information
• Parental financial information

Low Interest Student Loans

1. Fill out the Free Application for Federal Student Aid (FAFSA) on the web. This is the most essential step for receiving aid from your college or university as well as from Sallie Mae.

2. Search for and add school codes to your application to have your FAFSA information sent to the colleges of your choice. Verify all information to ensure it is correct, asking your parents to go over their details with care.

3. View your student aid report, and print a copy for your records. This will be sent to each of the colleges you indicated, and will help the schools determine your financial aid package.

4. Apply for loans at the Sallie Mae site, which allows you to choose specific loans you hope to receive.

5. Check out social lending sites that offer personal loans for students with very good credit. This option is best for non-traditional students who don't qualify for federal loans for whatever reason. With sites such as Zopa (link below), you can receive very good interest rates that are lower than what banks offer.

Tips & Warnings

• Keep a close eye on the interest rates and loan amounts you accept.
• Don't take on excessive college debt. It can be stressful and difficult to pay off large college loans upon graduation, especially if you don't land the job you're hoping.

Resources

• Mvelopes personal finance software
• Equifax 3-in-1 Credit Report
• How to Get an Instant Credit Report
• FAFSA on the web
• Sallie Mae
• Stafford Student Loans

Who Can Help Sponsored

• Earn your degree from industry experts at University of Phoenix. Take the next step in your career.

[sunshine11219]

on 10/8/2008 Fafsa is good at first but does not help after the 4 year degree you know but the info you gave was awesome

[StacyP]

on 8/28/2008 That warning is so true! Take heed, college goers.

[01KendraWrites]

on 8/28/2008 I've never heard of Zopa. Great article!

[Cherst1031]

on 8/26/2008 Wow, so much has changed over the years, this is very helpful information for me.

[oneloved]

on 8/26/2008 Great resource!