Tammy2
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Yes, it is correct that the rate of interest for the private student loans has indeed come down. It means that once you procure the loan, you will have to pay less monthly payment and second is that the index rate would be substantially low which further means that you can pay more and more for the loan amount that you have borrowed.
Let me be clearer with an example. Suppose you have borrowed money from a private lending organization of 10,000 dollars at 5% interest. It means that when you will repay, it would be $10,500 and the extra 500 dollars that you pay is the fees that is charged by the institution when it provided you with the money. If the rate of interest charged is cut low say 3%, then instead of 500 dollars, you will have to pay just 300 dollars and you could save in $200. Not only you saved in some amount of money but the monthly payments that you would be making would be lower than what it was supposed to be.
I hope that I am able to clarify your doubts. All the Best!
 Posted 124 days ago
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