Lenders with advertised interest rates under 3% scored the highest, as did those who offered more than the standard 12 months of forbearance, who made their loans available to non-U.S. citizens, who offered interest rate discounts beyond the standard 0.25% for automatic payments, who offered multiple loan terms maxing out at 15 years and who charged minimal fees.
In some cases, lenders were awarded partial points, and a maximum of 3% of the final score was left to editorial discretion based on the quality of consumer-friendly features offered.How are interest rates determined for private student loans? Private student loans usually offer variable and fixed interest rates that are based on the borrower’s creditworthiness. Variable rates rise and fall according to the index they follow. For example, the lender may use the prime rate as its benchmark.If you have good or excellent credit, then you’ll be eligible for a lower interest rate. But if you have poor or fair credit, prepare for an interest rate on the higher end of the range. Using a creditworthy co-signer can help you get a lower rate.