These rates represent the range of US federal and private loans available.1
Student loans are loans you receive to pay for school tuition and expenses, usually an undergraduate or graduate college degree.
College can be expensive! Often, so expensive that you don't have the money to attend without getting a loan. If attending an educational program is a very important experience you want to have, or you are expecting that you will increase your future earning potential as a result of completing the program, taking a loan to pay for education can be a good decision for you. It can make it possible for you to get the education you want, even if you don't have the money up front to afford it.
In the US, the government offers some student loan options with some advantages such as (potentially) lower interest rates than private loans, or no interest accumulation until you graduate. In many cases, these could be the best deal for you and your family to fund education. There are limits to how much you can borrow from the federal government, however, so if you need to borrow more after that, you might need to look elsewhere.
Private loans are also available from many lenders and the terms can vary significantly depending on whether you are borrowing on your own or with a co-borrower, your credit score, and other factors.
Interest rates can vary greatly. The federal "Direct" loans have interest rates of 2.75% for undergraduate and 4.30% for graduate students. "PLUS" loans, which are only offered to parents of undergraduates or graduate or professional students, have an interest rate of 5.30%.
Private loans often charge more and currently can have rates as high as 11.73%. Plug in some values below to see how much this will cost over time.
$
Years
%
Enter a value from 2.75 to 11.73
| Monthly Payment | $212.13 |
| Total Paid in Interest | $5,455.72 |
| Total Cost to You | $25,455.72 |