|
|
Are You Worried You'll Hear Bells When Shopping for Loans?
Of course we're referring to the "bells" that mean your credit is getting "dinged" by credit bureaus.
Well, we have good news...If you complete your loan shopping (including submitting loan applications) within a 30-day window, credit bureaus will not penalize your credit score for submitting applications to multiple lenders. All credit pulls for multiple student loan applications are considered one pull, if done within the 30 day window.
This knowledge is important because we want you to shop around! The only way you'll know you're getting the best interest rate is if you can compare offers from multiple lenders.
Now that we've assuaged your fears about that, we'll tell you how to make your life even easier still...
|
|
|
Research, Shop, and Compare
The first order of business:
Make sure your student ALWAYS maxes out the federal student loans.
If you still need more, you'll want to compare private student loan rates to the Parent PLUS loan, which is 6.28% plus a 4.228% origination fee, equaling an APR of 7.25% (the interest rate to compare private loans rates to).
Still need more $$$? Follow our steps (in the image above) for shopping for rates of private student loans.
You can check with Credible, a marketplace that makes it easier to get rates from multiple lenders, but not all lenders are represented, so also go directly to lender sites, like the ones we've listed below.
|
|
LENDER I VARIABLE RATES (APR) |
|
|
|
|
|
|
|
| *Variable rates as of July 21, 2021. Rates are based on automatic payment discounts of 0.25 percentage points. |
|
And last, but certainly not least...
After shopping around and before you commit to a lender, check Juno to see if they can beat your lowest rate. They've negotiated better rates based on giving the "winning" lender higher volume. |
|
Fun in the Sun
Once you've reached this point, congratulations!
There will still be opportunity to enjoy the summer and spend quality time with your freshman-to-be. (And don't forget to do some dorm shopping, but that's a topic for another newsletter.)
|
|
|
My goal is to provide affordable services, insightful information and a support system so your family can make more informed decisions about college.
Feel free to respond to this email with any questions you have. |
|
| Debbie Schwartz Founder, Road2College I'm a parent, like many of you, navigating college admissions and paying for college. With an expertise in personal finance, analysis, and marketing, I'm working to give families the information and tools to make smarter financial college decisions. |
|
|
Road2College may receive affiliate compensation on items purchased through our links.
|
|
|
