Are student loan interest rates fixed or variable?

In the state of Illinois, student loan interest rates can be either fixed or variable. A fixed rate loan means the rate of interest you pay stays the same for the entire length of the loan. This stability makes it easier to budget and plan your payments. However, if the overall interest rate rises in the market, you may not benefit from the lower rates that other borrowers are receiving. Variable rate loans, also called adjustable rate loans, are typically associated with higher interest rates. The interest rate on a variable rate loan can change over time, such as every six months. With variable rate loans, the interest rate may be lower when it starts than the rate of a fixed rate loan. However, because the rate can change over time, you may end up paying more interest than anticipated. When deciding between a fixed or variable rate loan, it is important to consider your financial needs and goals. If you anticipate a large increase in income over time, then a variable rate loan may make sense. On the other hand, if you prefer to plan ahead for a fixed monthly payment, then a fixed rate loan may be the way to go.

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Are student loan interest rates fixed or variable?

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