LIBOR or Prime Rate?

With the start of college just a few weeks away, it's not too early to begin figuring out how you're going to finance the new school year.

If you're like most people, you may need some private student loans to help fill the gap that's remaining after you've accounted for savings, scholarships, Federal student loans, and Mom & Dad.

Like anything else, comparison shopping of student loan rates and benefits is important, to help keep your borrowing costs and debt down. Many lenders offer loans touting LIBOR (London Interbank Offered Rate) rates, and others, the Prime rate. Both rates are interest rate benchmarks or indices used by most financial institutions around the world to set interest rates for their own particular credit products.

Both have their similarities and differences. Click here for the similarities and differences between LIBOR and Prime Rates.

What's important is sorting out the bottom line costs while you borrow and after you borrow. Take the time to ask questions.

Just be forewarned though...the lowest interest rates are usually available to those who have very good credit, or who have cosigners with very good credit. If your credit score is under 660, it would be wise for you to get a creditworthy cosigner.

And while we're talking about student loans, be sure to include OneSimpleLoan® on your private student loan shopping list. In addition to great rates, the Student Loan Consultants are wonderfully knowledgeable people who will answer all your questions!