Interest rates are the cost of a student loan. Federal and private student loans offer different rates.
Federal student loans come with a fixed rate, which stays the same throughout the life of the loan. It is set at the start of each academic year in July.
Private student loan interest rates can be fixed or variable, which change according to market forces. Private lenders determine the interest rate based on market factors and the student’s (and cosigner’s) creditworthiness who is borrowing money.
With College Ave, you can get a 0.25% interest rate reduction if you set up auto-pay for your student loan payments. See how to set up automatic payments to get your 0.25% interest rate reduction.
Learn more about the difference between fixed and variable student loan interest rates.