Blog readers may recall a post about the same time last year demonstrating the value of shopping around for a private student loan. This project helped dispel the myth that there was little difference in the starting interest rates that the purveyors of private student loans charge borrowers. Interestingly, this post became one the most popular on the SLA Blog last year.
In applying as a cosigner for six private student loans last year, the conditional rates ranged from 7.0% to 12.13% (with a 3% fee). All interest rates quoted in this post are variable rates that will adjust as their underlying index (either Prime Rate or LIBOR) changes. .
So, what to do for an encore this year? How about adding another borrower to the mix with a different credit profile?