It’s important to look at both the APR (Annual Percentage Rate) and interest rates when comparing student loans. An interest rate is the percentage charged to borrow money from a lender. It’s what you agree to pay for the amount you’re borrowing. The annual percentage rate (APR) includes interest plus any fees and other charges, like an application fee or origination fee (a percentage charged for processing your loan), that you’ll pay to get the loan. So, unlike an APR, an interest rate doesn’t consider the amount of the loan; whether unpaid interest will be capitalized (added) to your principal balance; whether you make in-school payments or defer until you leave school; and how long your repayment term is (the amount of time it’ll take you to pay back your loan)