Understanding the basic concept of variable vs. fixed rate student loans if fairly simple. A variable interest rate will change periodically over the term of the loan whereas a fixed rate will not. The questions many borrowers face is, “which is better?” Answering that question is more difficult than you might think–at first. Let’s break down both, so you can make an informed decision about which type to choose for your student loans.
One of the best ways to pay for college is to get someone else to foot the bill. And as luck would have it, there are quite a few companies that offer tuition assistance or tuition reimbursement as an employee benefit–even if you’re only there a few hours a week. Why would they offer such a lucrative perk to someone working part time? It’s really quite simple. Many employers understand that this type of incentive may actually tempt you to work for and stay longer with the company. I know I would feel a sense of obligation if someone gave me $12,000 for college. Wouldn’t you? If you have to work to help pay your college expenses, consider looking into one of these companies that will actually pick up part of the tab.
When paying off your student loans, there’s one thing you don’t want; late fees. Late fees can throw off your budget, delay future payments, and ultimately increase the buildup of interest, costing you more money in the long run. Luckily, there’s a new bill that will hopefully help borrowers avoid the accrual of late fees.
Student loan holders, check your emails and your mail boxes! A form might be coming your way that could save you some money!
You may have heard that the Federal Reserve raised their interest rates a few weeks ago. So, what does that mean for your student loans?