WHAT ARE THE INTEREST RATES CHARGED ON PRIVATE LOANS?
What are the interest rates charged on private loans?
Private loans tend to cost more than education loans offered by the US government but are less expensive than credit card debt. Private student loans generally have variable interest rates with the interest rate pegged to an index such as the LIBOR index or Prime, plus a margin. The interest rate a student will pay on a student loan is based on the student's credit score. A student with a lower credit score will incur a higher interest rate than a student with a higher credit score.
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