Lowering an interest rate is a service. Each of those consists of various subcategories. Students rarely think about shopping around for loans, and it's true that, among loans available to students there's very little variability. Students should also ask about forbearance policies. The federal government decrees an interest rate cap that lenders are allowed to charge student, effective July 1 to June 30 every year.
Most lenders charge that rate or something very close to it.
But it's worth a quick search. A rate difference of even a quarter point makes a significant difference over the life of a loan. Typically, a student receives an award letter from his or her school, which tells them how much they're eligible for, at which point the student requests an application. Far too often students borrow the maximum amount without thinking about how much they might be able to pay on their own. Loans to Parents Parents applying for loans have more options.